Understanding Earned Leave: Does Your EL Balance Count Only Physical Presence or Include Taken Leave?

Dear All,

I need clarity on the calculation of Earned Leave (EL) balance. Is the EL balance calculated based solely on physical presence, or does it also include leave availed?

In my company, they provide 1 EL for every 12.5 physical working days. Leaves taken within these 12.5 days are not considered in the calculation.

I hope my query is clear. Please suggest a solution regarding this rule.

Regards,
Devendra
Location: Ghaziabad, India

Dear Devendra,

The calculation of Earned Leave (EL) balance can vary depending on the company's policy and the labor laws of the country. In India, under the Factories Act 1948, an employee is entitled to 1 day of earned leave for every 20 days of service, provided the employee has worked for at least 240 days in a calendar year. This includes all kinds of leaves and holidays.

However, many companies, like yours, calculate EL based on physical presence, excluding the leaves availed. This is a common practice and is within the legal framework, as long as the minimum requirement under the Factories Act is met.

If you believe that your company's policy is not in line with the Factories Act, you may want to bring this to the attention of your HR department. If the issue persists, you could consider seeking legal advice.

Please note that the above information is based on the Factories Act 1948. If your organization falls under the Shops and Establishments Act of your state, the rules might vary.

I hope this information helps you understand the calculation of EL balance better.