Are Employees Entitled to Privilege Leave Encashment When Resigning? Seeking Clarity on Eligibility and Process

Hi Friends,

I have a small query and would appreciate it if you can help me out with this. As you all know, we have PL (Privilege Leave) entitlements of around 12-16 days, depending on the company, for employees who have completed one year of service.

My doubt is if an employee who has completed four years of service and has a balance of 12 PLs (for the service year of 2006) at the end of December 2007, resigns in December to be relieved in January 2008, will they be eligible for the 12 PLs for the service year of 2007 or not? If eligible, should the company provide encashment and for how many days will the employee be eligible?

Kindly assist me with this query at your earliest convenience.

Regards,
Julie

Dear Julie,

PLs normally get carried over to the next year, and in this case, the person should receive the encashment for the leave balance from 2006 and the total PLs for 2007 as he/she is getting relieved in January 2008. All the PLs should be added to his/her full and final settlement.

Regards,
Byomjeet

What are privilege leaves? What are annual leaves? Should I provide both the annual leaves and privilege leaves to my company?

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Dear Friend,

Privilege leave is also called annual leave. Section 78 of the Factories Act, 1948 stipulates that every worker who has worked for a period of 240 days or more in a factory during a calendar year is eligible for one day leave for every twenty days worked.

As per Section 79(5) of the Act, one can accumulate up to 30 days. However, many companies enter into wage agreement settlements and allow employees to accumulate PL up to 60 days. Over 60 days, employees can encash the PL. At the time of resignation, retirement, death, etc., the accumulated PL shall be encashed.

Hope this gives a bird's eye view of PL.

Regards, Manjunath G.K. Manager-HR

Dear All,

Kindly help me. My company is a small company. They are into the business of Rental and Sales Services of Machines and Equipment. They are used for construction purposes. There was no HR earlier in the company, but now I had joined 2 months ago. The management has now decided to implement leaves like CL, SL, PL, etc. Therefore, they have asked me to design the leaves of the employees. The total strength of the employees is 30, with 11 people working in the office and the rest working on the sites. Currently, I am focusing on the types of leaves that could be provided to the employees working in the office. Kindly help me with how to design the leaves here.

Admin - 2 people have been working for the past 1 year. They hold senior positions.

Accountant - 1 person has been working for the past 3 years. He is in a junior position.

Office Boy - 1 person has been working for the past 1 year in a junior position.

Accountant - 1 person has been working for the past 3 months.

Admin - 1 person has been working for the past 5 months.

HR - Working for the past 2 months.

Thanks

Regards,

Anindita Roy

HRD Officer

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Anindita Roy
HRD Officer

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Anindita Roy
HRD Officer

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Regards, Anindita Roy HRD Officer