Confused About Leave Allotment? How to Calculate Leaves Based on Joining Month

Hi all,

A very good morning to all of you.

I am confused regarding the allotment of leaves. We have a total of 16 leaves (10 CL and 6 SL). I know it should be as per the month you join, but I am not clear on how to allot the leaves. For example, if someone joins in June, August, October, December, or January, what should be the number of leaves in this case? Kindly help.

Regards,
Shweta Swarnkar

Dear Shweta,

Kindly let me know if one year is defined as from January 1st to December 31st or April 1st to March 1st. Then I will surely tell you how to calculate.

Regards,
Jayashri

Dear Shweta,

There are no statutory rules for casual leave and sick leave as such. However, the general practice is that leaves are not granted directly but are earned. To elaborate, in the case of casual leaves, if a person works for 36 to 40 days, they earn 1 casual leave. They can then accumulate these leaves as per the policy and utilize them whenever needed and whenever permitted.

On the other hand, for sick leaves, it is different because ideally, they should be taken whenever the person is sick. A person may join in July, August, or any other month, but as and when they complete a period of 36 to 40 days, they earn one day of leave. This is a general practice but can vary from company to company based on their policies.

Regards,
Sandeep K.

Dear Shweta,

They will be sanctioned proportionate to his period of employment in the current year.

Regards,
Jai

Hi,

As per my knowledge, the leave cycle is from January to December. Paid Leave (PL) and Earned Leave (EL) are calculated based on total presence:
- 1 EL is accrued per 20 working days.
- Casual Leave (CL) and Sick Leave (SL) are as Sandeep mentioned above.

Does anyone else want to add something?

Thanks.

Dear Shweta,

As per my knowledge, the calculation is done the following way. If a person joins in, say, August, then he will have 7 CL and 4 SL. The calculation for the above will be as follows. Since your company has 10 CL per year and a year generally has twelve months, the formula for calculating CL would be 10/12 * the number of months he works for that year (E.g. he joins in August, he works for 8 months, i.e., from August to March).

Similarly for ML, it is 6/12 * the number of months. So when a person joins in August, he will work 8 months for that year, so his CL = 10/12 * 8 = 6.66 that can be rounded off to 7. ML = 6/12 * 8 = 4. Hope this clarifies; else, you can call me on my mobile. I will leave my mobile number as a private message.

Regards,
Jayashri

Hi Shweta,

The leave policy should be based on the calendar year (Jan - Dec) not the financial year (April - March). You can use Jayshree's leave calculator to count the number of leaves in a particular time period.

Thanks,
Shuchi

Hi Sweeta,

Jayashri has given a very good reply, please follow. It would be better if you consider the year from January to December.

Regards,
U.C. Kaushik

Dear All,

As per the previous emails, it is clear that we need to calculate leave. Normally, the leave calculation period is from January to December. There are various types of leave such as earned leave, sick leave, and casual leave, but the specific names of leave types depend on the company.

Calculation guidelines are as follows:
- EL: One earned leave for every 20 days of work
- CL: One casual leave for every two months
- SL: Depends on sickness (maximum of 12 days)

If anyone joins in the middle of the year or at any point during the year, we must calculate the actual number of days worked.

Regards,
Puttaraju.M

Leaves e.g., CL, SL, and EL are calculated on a calendar year basis. For example, if an employee is entitled to 7 CL per year, the calculation for their leave balance would be as follows: 7 CL / 12 months = his/her leave balance. The same calculation applies to the other types of leaves.

Regards,
Chandrakant Bhardwaj
Officer - Personnel and HR

Hi Shweta,

I do agree with all the answers mentioned above. Leave period is generally a calendar year, and for new joiners in the middle of the year, leave calculation is on a proportionate basis. Balance leaves up to a certain limit are carried forward to the next year and have to be utilized by the end of the first quarter, after which they lapse.

Regards,
Sumeet

Hi Jayshri,

I am Nitika, and I have joined as HR Manager at ORIENT CRAFT INFRASTRUCTURES LTD. in Gurgaon. The company falls under the Special Economic Zone (SEZ) in Haryana. I need to establish certain policies here regarding leaves, payment of bonuses, dress code, welfare policies, salary breakdown, LTA, etc. I would like to understand the latest amendments in the acts related to these areas, especially the statutory rules concerning Privileged Leave, Casual Leave, and Sick Leave.

As per my understanding, Privileged Leave should be 18.25 days, Casual Leave should be 7 days, and Sick Leave should be 14 days. These figures are in line with the Punjab Industrial Establishment Act of 1966, which is also followed in Haryana. Additionally, please provide insights into the details of the Bonus Act with the latest amendments.

Thank you,
Nitika

Hi Shweta,

Leave structure is defined by the company and can vary from one company to another. In some companies, the company year starts from July to June, while in some, it starts from January to December.

So, first, tell me about your company calendar year. In some companies, the total leaves in a year are 30, so it's 2.5 leaves per month. However, it again depends on the company policy. During the probation period (six months), you can only get 7 leaves.

Hi All,

According to you, you have 10 CL & 6 SL for CL & SL if take calendar year from Jan to Dec. On 1st Jan, the employee should have 1 SL and 1 CL in his/her account. Then for CL, after every 36th day, leaves are getting credited to the employee's account. For SL, after 2 months, 1 SL is credited in the employee's account.

The reason why we are giving 1 SL & 1 CL on 1st Jan not after completing 36 or 40 days is that the employee will not be able to take 6 SL & 10 CL because both of them will fall on 31st Dec.

Hope this will help.

Hi Shwetha,

Normally, the leave period is for the calendar year. The employee will receive proportionate leave days for that year, depending on when he/she joins.

Suresh

My company follows the leave rules as:

- PL: 16 days
- CL: 7 days
- SL: 7 days

None of the above is granted until completing the probation period of 6 months. Is this correct?

Can anyone provide me with the complete leave rules in an editable format? My company is a Limited Organization.

Hi,

I hope Jayashri's solution will clear up your confusion. The calendar year (January to December) is a general rule of thumb for leave calculation. The rules governing CL and SL vary from company to company. Based on the above suggestions, you can establish a leave policy that suits your company.

Regards,
Falcon.

Dear Shweta,

I am working as a Personal Manager in New Delhi. I have worked for companies in Delhi & Gurgaon.

We allot CL & EL as per government rules on a yearly basis:

CL = Total working days per year / 45 days
300 days divided by 45 days = 7 days

EL = Total working days per year / 20 days
300 days divided by 20 days = 15 days

If any employee joins in July, the calculation can be taken as:
Total days divided by 12 months
300 / 12 = 25 days
25 days * (12-6) = 150 days
We will issue CL & EL
CL = 150/45 = 3.5 days
EL = 150/20 = 7.5 days

Please note that holiday leaves are issued on working days only.

Example:
Month Working Days
July 24 days
August 25 days
September 20 days
October 10 days
Total 79 days
We can issue
CL = 79/45 = 1.5 days
EL = 79/20 = 4 days
Total CL & EL of 5.5 days leave can be given.

Thank you.

Subodh Kumar Kashyap
9871971107

Hi all,

Very good morning to all of you. I am having a confusion regarding the allotment of leaves. We have a total of 16 leaves (10 CL and 6 SL). I know it should be as per the month you join, but I am not clear on how to allot the leaves. If someone joins in June, August, October, December, January, what should be the number of leaves in this case? Kindly help.

Regards,
Shweta Swarnkar

Dear Shweta,

As per my knowledge, the calculation is done the following way. If a person joins in, say, August, then he will have 7 CL and 4 SL. The calculation for the above will be as follows. Since your company has 10 CL per year and a year generally has twelve months, the formula for calculating CL would be 10/12 * number of months he works for that year (E.g., if he joins in August, he works for 8 months, i.e., from August to March). Similarly for ML, it is 6/12 * number of months. So when a person joins in August, he will work 8 months for that year, so his CL = 10/12 * 8 = 6.66, which can be rounded off to 7. ML = 6/12 * 8 = 4. Hope this clarifies, or else you can call me on my mobile. I will leave my mobile number as a private message.

Regards,
Jayashri

Dear All,

I agree with the calculation of Jayashri. It should be proportionate from his/her date of joining.

Regards,
KD Rohit
+9974952235

Hello Shweta,

I do agree that a leave calendar is easier managed if it follows the calendar year (Jan - Dec) rather than the financial year (Apr - Mar). Also, it's a common practice now that companies "award leaves" or employees "earn leaves." As Jayshri rightly explained, you can divide the number of leaves in each category by 12 to get the "monthly leave earning" (let's say - "X") for an employee.

If the employee joins anywhere in the middle of the calendar year, then you could allocate the leaves as: (X * number of months left in the calendar year).

Furthermore, if the employee joins at the beginning of the month (or before the 15th), the company may lay down a policy to award "X" in its entirety for that month. And if the employee joined after the 15th of the month, you may choose to halve "X" for that month.

Better still, you could simply club all leaves and just award the employee with Paid Leave (PL) so you don't really have to track the number of "SL/CL/EL" for every employee. Just maintain a PL balance :). That's the way we function at my office. We have 15 PLs per calendar year, and each employee earns 1.25 ("X") leaves per month, which keep accruing if not availed.

In the service industry (especially 24*7 environments), Public holidays are awarded as PLs, and then the PLs could increase from 15 to 25-30.

It would be up to you to consider and decide what's best for your employees and your company and formulate a policy accordingly for middle-of-the-year joiners.

Hope this information helps.

Hi,

To all the above repliers,

As Ms. Jayshri suggested, the correct way to calculate. I also have some doubts.

1) If an employee joins in the month of 14th July '08 and he wants to take leave for 1 day or 2 days. How should they be treated in salary?

2) What will be the above new employee's PL as of 02.01.09?

3) Whether a Trainee shall be eligible for PL, CL, and SL. Please clarify and help in this regard.

Regards, Arabindo, Bangalore
patroap@yahoo.co.in
9341660990

Hi,

Actually, the calendar year should not make any difference in calculating leave, as various organizations have different policies. When an employee joins, the company credits 10 CL and 6 SL to the employee's account. Leave is usually calculated on a prorated basis.

Assuming the employee joined on April 1, 2008, and has not taken any leave:

If the employee wants to check their Casual Leave balance on July 1, 2008, you need to calculate the number of days worked (April - 30 days = May 31 days) - 61 days. Then, calculate the leave available as: 61 days x 10 CL / 365 days = 1.67 days, which can be treated as 2 days eligible.

Similarly, if the employee wants to know their Sick Leave balance as of August 15, 2008. The calculation should check the number of days worked (April - 30 days + May - 31 days + June - 30 days + July - 31 days + August - 14 days) = 136 days. Therefore, the number of SL on a prorated basis would be 136 days x 6 SL / 365 days = 2.23 days, which can be considered as 2 days.

I hope this is clear, and you can definitely ask for any other clarifications.

KS

Dear Shweta,

First, you should know where leave originated and how many types of leave exist.

PL/EL - Privilege Leave/ Earned Leave
PL is governed by the Factories Act 1948. The rule states that individuals who have completed 240 days in a calendar year (from Jan to Dec) or 2/3 of the days in a calendar year when the factory or organization was operational are eligible. Employees are entitled to 1 leave day for every 20 days worked, and the organization must adhere to its Leave Policy, ensuring the minimum mentioned above.

SL- Sick Leave
CL- Casual Leave
Both CL and SL are governed by the Employees Standing Order Act 1946. Each state has its own set of standing order rules, so it is advisable to refer to the specific state's regulations. The allocation can vary, such as 7 CL and 7 SL or 14 CL and 7 SL, etc. The leave year typically runs from Jan to Dec.

Always refer to relevant books for guidance. If needed, seek assistance from senior colleagues to resolve any queries. Remember, books are your most reliable source of information.

For any further clarification, feel free to email me at rakesh_karsh@yahoo.co.in.

Thank you.

Dear Sweta,

I agree with the calculation of Jayashri. It should be proportionate from his/her date of joining. Normally, the leave period is for the calendar year, either January to December or April to March. The employee will be entitled to proportionate leaves for that year as per the leave rules whenever he/she joins as a trainee or on probation.

Mahesh Patel

Dear Shweta,

Leaves for you can be given on a pro-rata basis. This means that all the leaves, whatever the total number may be, are divided by 12 months and then allotted accordingly.

Hi Arabindo,

1. If the number of leaves exceeds the monthly quota, mark it as leave without pay.
2. As per your company's policy, you need to clarify that first.
3. As a trainee, no leaves should be allotted. However, it depends on the company's policy regarding the training duration.
Thanks and Regards,
Shweta Swarnkar

Hi,

To all the above repliers,

As Ms. Jayshri suggested, the correct way to calculate. I also have some doubts.

1) If an employee joins on the 14th of July '08 and wants to take 1 or 2 days off, how should it be treated in the salary?
2) What will be the new employee's PL as of 02.01.09?
3) Is a trainee eligible for PL, CL, and SL?

Please clarify and assist in this regard.

Regards,
Arabindo, Bangalore
patroap@yahoo.co.in
9341660990

In continuation of Shweta's leave reply, I want to add a little bit more. But if there are any suggestions, please give.

What I know is that in a factory, if a staff member is not covered under ESIC, he can avail sick leave, which is available in the current year, i.e., from Jan to Dec. - Is this correct? Eligible leaves are 7. CL is 12. If there is anything wrong with this, please inform.

If the person is not covered under the ESIC, that means anyone earning above Rs. 10,000/- is eligible to take sick leave. In a year, a total of 12 days of sick leave are allowed, not more than that.

Hi,

Regarding the REG. NON ESIC - SICK LEAVE, thank you to Shiva for the valuable information. Is this applicable to all state governments or only restricted states, as I am in Karnataka?

For REG. SICK LEAVE, you mentioned 12 leaves for non-ESIC staff. Should these be taken in that year, or can they be carried forward?

Moving on to CASUAL LEAVE, please explain if it applies to ESIC-covered staff or not. If applicable, can it be carried forward to the next year if there is a remaining balance?

SLG :icon7:

Hi Shweta,

It doesn't matter whether you use the financial year or calendar year. Leave credit is always calculated on a pro-rata basis based on the year's start and end. Many companies follow the financial year as it affects leave encashment budgets.

Priyata

Hi Everyone,

This is Prakash from Apexencon. Please provide the below information according to the government rules (INDIA).

How many leaves can we give in the probation period according to the law? If a person joined in the middle of the year and completed his probation period in the same year, how should leaves be provided? Can the leave system change from organization to organization? Is there any law stating that a minimum number of leaves should be followed, and legal action can be taken if not adhered to? Or, is there any law stating a minimum number of leaves to be followed, with the maximum depending on the company? Can anyone provide a link or document proving the legal requirements regarding leaves?

I request everyone to help me with the above queries.

Email: kunajayaprakash@yahoo.com

Dear All,

I would like to raise one question about Earned Leave. Does an employee get leave based on the earned leave they enjoyed in the last year? For example, if they physically worked 220 days and enjoyed 30 days of leave, including Casual Sick Leave and Earned Leave in the year 2008, how many leaves did they earn in 2009? Is it 220/20 = 11 leaves or 250/20 = 12.5 leaves for the year?

Please go through Section 79 of the Factories Act, 1948 for this purpose.

Regards,

R.N. Khola

(Labour Law & Legal Consultants)
09810405361

Hi, Shweta,

As per the Factory Act, the year is always counted as a calendar year, from January to December. It is confirmed.

Kuldeep Sharma
Advocate