Earned Leave Rules Update: Does It Apply to the ITES Industry Too?

Dear All,

Can anyone update me on the latest rules regarding earned leave? I would like to know if this is applicable to the ITES industry as well.

Regards,

Maya,

It varies from company to company. (As per the law, every 20 working days an employee has to get 1 EL, which means a minimum of 12 days).

Regarding EL settlement, previously PF was taken into account to settle the EL while calculating F&F. However, now PF is not considered.

Regards,
Dasa

Dear Maya,

It varies from company to company, so it's not fixed, but as per law, if an employee worked for 20 days, they are entitled to 1 PL (Paid Leave). PL can be carried forward to the next year, but only 12 PL days will transfer from the current to the next year, and the remaining balance will lapse.

Regarding PL settlement, before 30-Mar-08, we deducted the PF adjustment from the PL. However, from 1-April-08 onwards, it is not entitled to PF deduction. FnF calculations are always based on the gross salary for the resigning month.

Calculation: Basic+DA/30 * No. of PL.

Note: PL is always calculated based on 30 days, not 31 or 29 days.

Hello everyone,

It's true that it varies from company to company. In the ITES sector, most companies offer 20 to 21 PLs per year, which could again be based on company policies, whether they can be encashed or not. Yes, it does apply to the ITES sector. I am working as an HR in an IT firm, and we offer 21 PLs per year, which can be carried forward. Every employee can have a total of 90 PLs during their complete tenure, and after that, the rest will lapse, which is a common practice in most IT companies.

I hope you have gained more information from the above statement.

Regards,
Neha Khale

Dear all,

I work in the HR Department of a real estate company. Here, we offer 15 days of paid leave if an employee has been with us for a period of 1 year or more. This leave can be carried over to the next calendar year in the employee's leave account. If an employee completes their 1 year in the middle of the calendar year, we calculate the paid leave on a pro-rata basis. For example, if an employee works from May to December, we would calculate how many days of paid leave they are entitled to during that period.

Regards

Dear all,

As already mentioned by all of you, EL varies from company to company. If an employee works for 20 days, then he is eligible for earned leave, but on a prorated basis, it is usually calculated as 15 EL for a year. Typically, IT companies offer 20-24 days of earned leave. These can be carried forward for a maximum of 45 days and then must be encashed. The process of EL encashment also varies from company to company. EL is calculated based on the basic salary, considering 26 working days.

Regards,
Ankita

Hi,

Our company has the only system of Earned Leaves (on a pro-rata basis) and no fixed leaves of CL/SL, etc. We work 6 days a week. So what is the rule in this situation? Is there any minimum number? Or is it up to the discretion of the employer to fix it as 1 EL in 50 days/1 EL in days?

My other question is: Does the pro-rata calculation have a formula for Earned Weekly Holidays?

Yes, it has already been defined by others that the leave structure varies from company to company. Most companies segregate their leave structure into CL, SL, and EL or PL. Out of these, only SL and PL may be carried forward, whereas if any CL remains available in the balance at the end of the year, it shall be lapsed.

Most companies follow the structure of 16 PL, 8 SL, and 8 CL on a pro-rata basis. Up to 16 PL may be carried forward for the next calendar year.

Regards,
Amit Seth.

Hi all,

Thanks for your reply. I fear I still did not get the answer to my question: "Whether prorata calculation has a formula for Earned Weekly Holidays?"

Secondly, we have a different system where there is NO SL or CL. We only have PL/EL. Is there a structure to follow in this situation? ONLY EARNED LEAVES. Not declared beforehand.

Hi,

One may calculate leaves very easily based on the pro-rata. Pro-rata means leave shall be calculated based on length of service only. For example, if somebody joins on the 1st of April and is entitled to 24 earned leaves in a year, then after every month, 2 leaves shall be accumulated in their available balance of leaves.

Regards,
Amit Seth

So does 'prorata' define the number of leaves at first? Say I join on 1st April. As per the above 'pro-rate' structure you have given:

1. Will I be informed that I can earn 24 leaves?
2. If on April 1, I work for 25 days out of 26 working days, how many leaves will I accumulate at the end of the month?

"Does prorata calculation have a formula for Earned Weekly Holidays?"

See, if someone joins on the 1st of April and the calendar is from January to December, then for that calendar year, they will be eligible for only 24 - 6 = 18 leaves. This calculation does not include Sundays as it is already a weekly off.

If somebody works for 25 days instead of 26, and if it's a planned and approved leave, then it shall be considered as leave; otherwise, it shall be marked as LWP (Leave Without Pay).

Regards,

Amit Seth

Hi,

Thank you for your information. Does prorata calculation have any formula for "Earned Weekly Holidays"? (yes/no/don't know) If YES, what is the standard procedure to follow?