Understanding Leave Entitlement: Can Employees Avail or Encash Leave After One Year?

Leave Entitlement Under the Shops and Establishment Act

As per the Shops and Establishment Act, the following is mentioned regarding leave entitlement:

(a) After every twelve months of continuous employment, to privilege leave for a total period of not less than fifteen days;

(b) In every year, to sickness or casual leave for a total period of not less than twelve days;

My queries are as follows:

1. Do we need to give leave after the completion of one year, or can we credit leave, and the staff can avail or encash it after one year?
2. Do we need to credit leave to staff on a month-to-month basis? If so, how many minimum leaves can we credit that staff can avail?

Your inputs would be much appreciated.

The queries are answered below:

Privilege Leave Entitlement

1. Going by the provisions quoted, 15 days of privilege leave is to be added after every twelve months of service from the start. If you credit the leave in advance, then it has to be allowed to be availed during the 12-month period; encashment can be done after the period is over. Merely crediting without the option of availing is of no value.

Crediting Leave

2. Crediting on a monthly basis is cumbersome as it will involve dealing with unwieldy fractions for privilege leave; you can make it half-yearly or quarterly as you may like it. CL/SL can be allowed to be credited on a monthly basis.