Hallo Citehr memebers, I would like to know the difference between earned leave and privilige leave and its impact on leave balance. Regards, Trishna Chopra
From India, Pune
Acknowledge(0)
Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
Understanding Earned Leave, Privilege Leave, and Annual Leave
Earned leave, privilege leave, or annual leave are all the same; there is no difference between them. In the Factories Act, it is called annual leave, as mentioned in sections 78 and 79. In some Shop and Establishment Acts, it is referred to as privilege leave, while in others, it is known as earned leave.
Regards,
From India, Delhi
Acknowledge(0)Amend(0)
174Earned leave, privilege leave, or annual leave are all the same; there is no difference between them. In the Factories Act, it is called annual leave, as mentioned in sections 78 and 79. In some Shop and Establishment Acts, it is referred to as privilege leave, while in others, it is known as earned leave.
Regards,
From India, Delhi
Acknowledge(0)Amend(0)
The difference is that under the Factories Act, such leaves are called Earned Leave (EL), and under the Shops & Estb. Act, they are called Privilege Leave (PL).
Although the nature and purpose of both PL and EL are the same, the applicability differs in terms of minimum allotment. Under the Factories Act, it is 1 EL for every 20 days of work (18 per year), whereas under the S&E Act, it is 5 PL for every 4 months of work (15 per year).
Thanks and regards,
Ramesh Verma
From India, Delhi
Acknowledge(0)Amend(0)
Although the nature and purpose of both PL and EL are the same, the applicability differs in terms of minimum allotment. Under the Factories Act, it is 1 EL for every 20 days of work (18 per year), whereas under the S&E Act, it is 5 PL for every 4 months of work (15 per year).
Thanks and regards,
Ramesh Verma
From India, Delhi
Acknowledge(0)Amend(0)
Thank you for the prompt reply....just a further clarification, we are an NBFC, as per our leave policy its 18 EL + 6 CL + 6 SL. Are we on the right track?
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)
What I perceive regarding Earned Leave and Privilege Leave is that Earned Leave is the one which one earns based on the working days as per the Factories Act. Every management has the prerogative to have its own leave policy for its employees. Management may prefer to provide leaves strictly as provided in the Factories Act, i.e., one earned leave for every 20 days of working, which amounts to 15 days in a year. Similarly, 7 Casual Leaves will be permitted under the Act. However, most managements restrict this calculation to a group of employees (Workmen) and may prefer to provide a different set of leave rules to Office Staff and Officers. They may provide Privilege Leave (EL), Casual Leave, and Sick Leave in excess of what is given to the other group or provided in the Factories Act. Of course, Sick Leave will be provided to those who are not covered under ESI.
Privilege Leave Policies
Privilege leave provided by the Management could be 30 days in a year (Casual Leaves 10 days in a year normally). Some managements provide the same twice a year, i.e., from 1st January and 1st July every year. This leave can be carried forward to a certain limit at the discretion of the management. Privilege leave accumulated beyond that limit gets lapsed, and encashment of this leave is also permitted by the Management in many companies. Sick leave also will be allowed to be accumulated to a certain limit beyond which the unavailed Sick Leave will get lapsed. Casual Leave has to be availed during the year, and unavailed Casual Leave at the end of the year gets automatically lapsed.
Management Discretion in Leave Policies
Every management can, at their discretion, formulate their own leave policy and implement the same. The statute only provides the minimum eligibility but never limits the same.
I hope I have made the matter clear.
Regards,
Joga Rao
From India, Eluru
Acknowledge(0)Amend(0)
Privilege Leave Policies
Privilege leave provided by the Management could be 30 days in a year (Casual Leaves 10 days in a year normally). Some managements provide the same twice a year, i.e., from 1st January and 1st July every year. This leave can be carried forward to a certain limit at the discretion of the management. Privilege leave accumulated beyond that limit gets lapsed, and encashment of this leave is also permitted by the Management in many companies. Sick leave also will be allowed to be accumulated to a certain limit beyond which the unavailed Sick Leave will get lapsed. Casual Leave has to be availed during the year, and unavailed Casual Leave at the end of the year gets automatically lapsed.
Management Discretion in Leave Policies
Every management can, at their discretion, formulate their own leave policy and implement the same. The statute only provides the minimum eligibility but never limits the same.
I hope I have made the matter clear.
Regards,
Joga Rao
From India, Eluru
Acknowledge(0)Amend(0)
Agreed with Mr. Jago Rao opinion. NBFC falls under the Shop & Establishment Act where EL should be 15 and CL, SL should be 12 . However, Mgmt. may frame their own policy in line with the same.
From India, New Delhi
Acknowledge(0)Amend(0)
From India, New Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Why did this talented employee leave.doc