Can Employees Take More Leave Than Earned? Understanding Leave Policies and Pay Implications

Hello Everyone,

I am aware that each employee gets 21 days of leave for the year, which is 1 day of leave for every 20 working days. Can an employee consume more leave than what he has already earned? For example, can an employee take more than 3 days of leave in 2 months? And if not, would the extra leave be considered as leave without pay?

Please advise.

Carol D.

Dear Colleague, To clarify better, each employee is entitled to leave with wages if he or she has actually worked at a rate of 1 day for every 20 days worked. To be eligible for this, the employee should have worked for 240 days in the previous year. For counting the 240 days' eligibility, paid weekly off days, paid holidays, and paid leaves availed are considered but not for the quantum of leave at the stipulated rate. For that, only actual days worked are considered.

Besides, the Act provides for the accumulation of unavailed leave for usually up to two years' leave entitlement.

Now, to answer your query, the granting of leave to any employee is based on the leave balance at each occasion in his/her account and not on the rate of entitlement. If he has sufficient leave in his account and work exigencies permit, you may grant leave up to the maximum days in his account. If you consider granting more, it has to be treated as leave without pay.

Regards, Vinayak Nagarkar HR and Employee Relations Consultant