Hello everyone. My question is regarding earned leave in my company. The rule is that 21 working days equal 1 EL. I have a few specific questions:
1) Is EL applicable during the notice period?
2) Is EL applicable during the probation period?
3) How is EL calculated?
4) Can anyone provide an example of the calculation for encashment and settlement based on the basic salary?
5) What is the maximum carry forward limit for EL?
6) How many EL days can an employee use at one time?
Thank you.
From India, Pune
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1) Is EL applicable during the notice period?
2) Is EL applicable during the probation period?
3) How is EL calculated?
4) Can anyone provide an example of the calculation for encashment and settlement based on the basic salary?
5) What is the maximum carry forward limit for EL?
6) How many EL days can an employee use at one time?
Thank you.
From India, Pune
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Reply to the queries are as follows:
1. Annual Leave Entitlement
As per the Factories Act, one day of Annual Leave (AL) is entitled for every 20 days of work. To the best of my knowledge, under the Shops and Establishments Act, there is no condition for earning AL/PL. Therefore, granting only one day of leave for 21 days of work, as per the company's policy, does not comply with any law and provides employees with less AL/EL/PL than they are entitled to enjoy.
2. EL During Notice Period
EL is applicable during the notice period.
3. EL During Probation Period
EL is generally applicable during the probation period as per the company's policy.
4. Pro-rata Basis Calculation
EL is calculated on a pro-rata basis.
5. Calculation Based on Gross Salary
It should be based on the monthly gross salary, as the act also guides in that direction.
6. Maximum Carry Forward Limit
The maximum carry forward limit is specified under the Factories Act and the Shops and Establishment Act. It may also be as per the company's policy but should not be less than what is mandated by the statute.
7. Utilization of EL
The maximum number of EL days an employee can enjoy at one time is typically determined by the company's policy. Generally, an employee may utilize EL up to their credit limit.
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] www.usdhrs.in
From India, New Delhi
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3671. Annual Leave Entitlement
As per the Factories Act, one day of Annual Leave (AL) is entitled for every 20 days of work. To the best of my knowledge, under the Shops and Establishments Act, there is no condition for earning AL/PL. Therefore, granting only one day of leave for 21 days of work, as per the company's policy, does not comply with any law and provides employees with less AL/EL/PL than they are entitled to enjoy.
2. EL During Notice Period
EL is applicable during the notice period.
3. EL During Probation Period
EL is generally applicable during the probation period as per the company's policy.
4. Pro-rata Basis Calculation
EL is calculated on a pro-rata basis.
5. Calculation Based on Gross Salary
It should be based on the monthly gross salary, as the act also guides in that direction.
6. Maximum Carry Forward Limit
The maximum carry forward limit is specified under the Factories Act and the Shops and Establishment Act. It may also be as per the company's policy but should not be less than what is mandated by the statute.
7. Utilization of EL
The maximum number of EL days an employee can enjoy at one time is typically determined by the company's policy. Generally, an employee may utilize EL up to their credit limit.
Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] www.usdhrs.in
From India, New Delhi
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x