Understanding Earned Leave Calculation: Are 240 Days Working or Payable Days?

1. One employee joined us on 16th Jan 19 and left on 18th Sept 19. Now, I am processing his F&F settlement. According to the leave book, his total working days are 165 days, making him eligible for earned leave (EL). The EL calculation is 165/20 = 8 days for payment. Is this calculation correct as per the act?

2. According to the act, 240 days are considered for EL calculation. Are these 240 working days (25 days per month) or payable days (31 days)? Please advise.

240 days is the total paid days attended during 12 months. If the employee had worked only for a portion of the year, you can take it pro rata also. That means for 8 months it will be 8 x 20 days or 160 days. Obviously, if he had put in 165 days, he will get 8 days of paid leave.