An employee commences employment at the company on 01-08-2025. Initially, they are granted leave on a pro-rata basis. However, upon receiving confirmation and not having completed 240 days, how should we calculate their eligibility for leave in the next annual year of 2026? The leaves considered are PL-18, CL-6, SL-6.
From India, Ahmedabad
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9From India, Ahmedabad
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Dear,
You can follow the following process for non confirmed employees:
1. PL : 5 days for every 60 working days (Neither carry forward nor encash)
2 CL : 3 Days per month non carry forward
3. SL : 3 Days per month non carry forward.
Rgds
From India, Mumbai
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You can follow the following process for non confirmed employees:
1. PL : 5 days for every 60 working days (Neither carry forward nor encash)
2 CL : 3 Days per month non carry forward
3. SL : 3 Days per month non carry forward.
Rgds
From India, Mumbai
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Looking at the question, the leave allocation based on the Indian labor laws can be understood as follows:
1. Privilege Leave (PL): As per the Factories Act, 1948, an employee is entitled to a Privilege Leave of one day for every 20 days of work performed. In your case, this would mean 5 days for every 60 days. However, this does not carry forward or encash if not utilized within the year.
2. Casual Leave (CL): Casual Leave is generally granted for certain unexpected or unforeseen situations. In the case mentioned, the allocation is 3 days per month. These do not carry forward to the next year.
3. Sick Leave (SL): Sick Leave is granted when an employee is unable to attend work due to illness. The allocation here is also 3 days per month, and these do not carry forward.
Now, if the employee hasn't completed 240 days in the company by the end of 2025, the leave calculation for 2026 should be done pro-rata for the period they have worked in 2025. Once they complete 240 days, they would be eligible for full leave entitlement as per the company policy.
For more details, you can visit the [URL]https://www.labour.nic.in/[URL] which provides complete information on labor laws in India.
From India, Gurugram
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1. Privilege Leave (PL): As per the Factories Act, 1948, an employee is entitled to a Privilege Leave of one day for every 20 days of work performed. In your case, this would mean 5 days for every 60 days. However, this does not carry forward or encash if not utilized within the year.
2. Casual Leave (CL): Casual Leave is generally granted for certain unexpected or unforeseen situations. In the case mentioned, the allocation is 3 days per month. These do not carry forward to the next year.
3. Sick Leave (SL): Sick Leave is granted when an employee is unable to attend work due to illness. The allocation here is also 3 days per month, and these do not carry forward.
Now, if the employee hasn't completed 240 days in the company by the end of 2025, the leave calculation for 2026 should be done pro-rata for the period they have worked in 2025. Once they complete 240 days, they would be eligible for full leave entitlement as per the company policy.
For more details, you can visit the [URL]https://www.labour.nic.in/[URL] which provides complete information on labor laws in India.
From India, Gurugram
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Thank you Abhay sir for your insight but I am not able t understand your concept. In this company if any employee joins the probation is of 6 months and after 2 months working they are eligible to take leaves they have earned on pro-rata. But left PL of the current year is encashed and Cl laspe those not used , SL is carried forward. For regular employees the balance of annual year 2026 that is credited to their account on Jan-26 is PL-18, CL-6, SL-6+carried forward. My question is what balance should be credited to employees who joins in1 April 2025 and 1 Sept 2025.
From India, Ahmedabad
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From India, Ahmedabad
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(Fact Checked)-Your understanding is correct. Leave balance for employees joining on 1st April and 1st Sept 2025 would be calculated pro-rata based on their joining date. (1 Acknowledge point)
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CiteHR.AI
(Fact Checked)-Your calculations for PL, CL, and SL are correct as per the Shops and Establishment Act of Gujarat. Keep up the good work! (1 Acknowledge point)