Understanding Earned Leave: How Do You Calculate It for New Employees?

Hi,

Please clarify my questions on earned leave based on this example.

As per our leave policy, an employee is eligible for 15 days of annual leave after completing one year of service. Leaves are calculated from January to December. Suppose an employee joins in September 2007, what will be his leave status as of December 2008? Will he have 15 + 3.75 days of leave to his credit? How is it calculated?

Thanks,
Gautami

Dear,

At the company I used to work for, Earned Leave was calculated as 1 day for every 10 days worked. Earned Leave, if not used, could be encashed. Irrespective of when one joined, Earned Leave was calculated based on the number of days worked. Generally, it is a matter of policy and may differ from company to company.

Hi Gautami,

According to the Factories Act of 1948, every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed leave during the subsequent calendar year. The calculation of leave differs from company to company, and it would have been clearly spelled out in the standing order of the company. In your case, since the worker has joined during September, he may be entitled to 4 days of leave only.

Regards,
A. Muthumalai