Can Companies Rename Privilege Leave to Special Sick Leave Without Losing Its Value?

Dear All,

General Practice for Leave Carry Forward

As a general practice followed in organizations, carrying forward is permitted only in the case of Sick Leaves (SL) or Privilege/Earned Leave (AL/PL/EL). As a normal practice, casual leave should not be considered for carry forward. These are leaves employees have to avail to meet personal commitments or emergencies. The unavailed portion of CL shall automatically expire at the end of the year.

Renaming Privileged Leave Balance

But if the company provides PL, can the name of the PL balance be changed to Special Sick Leave for the next year? My question is, is it valid to change the name of the Privileged Leave balance on 31st December of one year to become Special Sick Leave on 1st January of the next year?

An organization made such a decision and further made policies to make that PL balance lapse in the next 90 days, which is already "renamed" as Special Sick Leave due to such invalid decision-making.

Monetary Value of Leave Balance

My question is, can the PL leave balance be renamed to any name as it contains monetary value to the employee?

Regards

Dear Shomil,

The logic behind such a name change evades the understanding of people like me. If you explain how the same name like EL/PL/ALWW is going to remove the monetary value attached to it, it would be better.

In the matter of compliance with the legal provisions of any law by the employer, in my opinion, changing the nomenclature of the statutory benefits according to his own fanciful imagination will not serve any useful purpose but lead to unnecessary confusion only.

If the admissible leave balance at credit has a statutory ceiling, it automatically remains the same despite the periodical carryover. The employer has no right to declare such a constant balance lapsed even despite its unauthorized/illegal name change. The provision for the encashment of such leave balance still remains at large on the occasion of termination of employment of the employee.

You have raised the query on employee leave; however, you have not mentioned whether the provisions of the "Shops and Establishment Act" or "Factory Act" are applicable to your company. I recommend you strictly follow the provisions of the act of your state as applicable to your company. Keep the nomenclature of the leave the same without changing the title. You may grant leave with the title of your choice over and above what the act demands.

Thanks,

Dinesh Divekar