Leave Entitlement and Pay Deduction Query
Our organization is a society located in Gurgaon (Haryana), registered under the Societies Registration Act and also under the Punjab & Haryana Shops & Establishments Act.
Under our establishment's Leave Rules, an employee is entitled to the following leaves:
- EL: 15 Days
- CL: 12 Days
- National/Regional Holidays: 10 Days
According to the Leave Rules, EL & CL cannot be clubbed, and CL cannot be availed for more than 2 days. One day of EL and one day of CL is credited to the employee's account at the beginning of each month. The balance of 3 EL days is credited as 1 day EL for the months of Oct, Nov & Dec.
Pay Deduction Scenarios
Can anyone please advise if a deduction of pay will be applicable in the following examples:
a) An employee has 4 days of EL and 3 days of CL due to him.
b) He takes EL leave for 4 days but joins after 6 days.
Question
Should I deduct 2 days' salary from his pay (as excess EL is availed), or can the excess leave be adjusted against the CL leave balance? The rules state that EL & CL cannot be clubbed together.
Can any of our learned members provide an answer ASAP?
Regards
From India, Gurgaon
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Our organization is a society located in Gurgaon (Haryana), registered under the Societies Registration Act and also under the Punjab & Haryana Shops & Establishments Act.
Under our establishment's Leave Rules, an employee is entitled to the following leaves:
- EL: 15 Days
- CL: 12 Days
- National/Regional Holidays: 10 Days
According to the Leave Rules, EL & CL cannot be clubbed, and CL cannot be availed for more than 2 days. One day of EL and one day of CL is credited to the employee's account at the beginning of each month. The balance of 3 EL days is credited as 1 day EL for the months of Oct, Nov & Dec.
Pay Deduction Scenarios
Can anyone please advise if a deduction of pay will be applicable in the following examples:
a) An employee has 4 days of EL and 3 days of CL due to him.
b) He takes EL leave for 4 days but joins after 6 days.
Question
Should I deduct 2 days' salary from his pay (as excess EL is availed), or can the excess leave be adjusted against the CL leave balance? The rules state that EL & CL cannot be clubbed together.
Can any of our learned members provide an answer ASAP?
Regards
From India, Gurgaon
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Dear Friend,
As your leave rules specifically state that EL & CL cannot be clubbed, any additional absence over and above the eligible leave is considered an absence. Therefore, you can deduct the salary for the extra 2 days availed.
Regards,
Kamesh
From India, Hyderabad
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191As your leave rules specifically state that EL & CL cannot be clubbed, any additional absence over and above the eligible leave is considered an absence. Therefore, you can deduct the salary for the extra 2 days availed.
Regards,
Kamesh
From India, Hyderabad
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Thank you, friend Kamesh 333.
One other related question, please: Although the Punjab & Haryana Shops & Establishments Act stipulates that un-availed EL leaves can be carried forward into the next year (up to 40 days maximum, I think), our Management has ruled this out saying that "these are guidelines only, an establishment can choose to follow or not to follow these rules as it is not a Government organization".
Is this stand correct?
Regards,
Bhaskar J. Roy
From India, Gurgaon
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One other related question, please: Although the Punjab & Haryana Shops & Establishments Act stipulates that un-availed EL leaves can be carried forward into the next year (up to 40 days maximum, I think), our Management has ruled this out saying that "these are guidelines only, an establishment can choose to follow or not to follow these rules as it is not a Government organization".
Is this stand correct?
Regards,
Bhaskar J. Roy
From India, Gurgaon
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