Hi everyone, I am new here. I work in a private company. My company has a system of 1 casual leave and 1 sick leave a month. So, this means that it is 24 leaves a year. If we don't take them, they will be accumulated, and we can take them later but before the financial year ends. After that, those leaves would lapse.

Leave Accumulation and Usage Issue

My case is that I joined in February, and the next financial year started in April. I took no leave in April, but in May, I worked until the 10th and fell severely ill, so I took leave for the whole of May and resumed work in June. In May, I received a salary for 14 days. I worked for 10 days and used 4 days of accumulated leaves from April and May. For the remaining days of May, I didn't receive a salary. This means it was Leave Without Pay (LWP) and not paid leave. After that, I took no leave in June, 1 in July, 1 and a half in August, and none in September. Then, I took 4 leaves in October. However, my company is deducting my salary for 2 days, claiming that all my leaves were exhausted in May. I informed them that I didn't receive any paid leave, but they are not agreeing to it. Can anyone tell me where it's going wrong?

Thanks

From India, Gurgaon
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AnushreeSrivastava you may ask for pay slip from your company or leave records for the year from that you will be able understand it easily. Dinesh
From India, Gurgaon
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if they are saying that your leaves are exhausted then, they shouldn’t have cut your salary. i would say that you need to talk to them and clarify on why this is done. Regards, Archana
From India, Hyderabad
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We don't receive any salary slips. Our salary is transferred to our savings account through NEFT. I have also asked them whether they would have provided leave with pay at that time or if they should provide it now, as I am entitled to 24 paid leaves. However, they are saying this situation occurs in every organization.

Now, the issue is if I take any leave before April, it would result in a deduction, which I find really unfair.

From India, Gurgaon
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  • CA
    CiteHR.AI
    (Fact Checked)-The company must provide paid leave as per your entitlement. Request a detailed salary slip and review your leave policy to ensure fair treatment. (1 Acknowledge point)
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  • You are not allowed to utilize all your leaves at one time. Every 20 days, you will have one day of leave. You joined in February, and you met with an accident; it seems your HR department covered your attendance with a 4-day leave.

    Leave Calculation Formula

    Leaves = (number of leaves / 12) * number of months of service.

    From India, Hyderabad
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    At that time, I didn't receive my salary, and I understand that taking consecutive leaves may not be allowed. However, now, whenever I take any leave, it results in a deduction from my salary. I am unable to comprehend why this is happening. If you have any insight, could you please explain it to me in detail?

    Thanks

    From India, Gurgaon
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  • CA
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    (Fact Checked)-The company should not be deducting your salary for taking leaves as long as you have accumulated leave balance. Request HR to clarify and resolve this issue promptly. Thank you for seeking clarification on this matter. (1 Acknowledge point)
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  • I have gone through your comment and found that you joined your organization in February, and after three months, you fell ill. As per my understanding, CL (Casual Leave) and SL (Sick Leave) are paid after six months of joining or according to the company norms. Your company has paid you for 10 working days and for four weekly offs, totaling 14 days.

    If there is any discrepancy, please review your salary slip to see how many working days they have mentioned. I recommend checking your company policy or your appointment letter for further clarification.

    I hope this information will be helpful to you.

    Thanks and Regards,
    Atul Singh

    From India, Jaipur
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    I have gone through your comment and found that you joined your organization in February. After three months, you fell ill. As per my knowledge, CL (Casual Leave) and SL (Sick Leave) are paid after six months of joining or according to the company's norms. Your company has paid you for ten working days and for four weekly offs, totaling fourteen days. If you are facing any issues, please review your salary slip to see the number of working days mentioned. Refer to your company policy or your appointment letter for further clarification.

    I hope this information is helpful to you.

    Regards,
    Atul Singh

    From India, Jaipur
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    Since you received your May salary after deducting 16 days of absence, you are eligible for regular leave at 2 days per month, as per your organization's policy that you mentioned. This entitlement continues until the current fiscal year ends.

    In this fiscal year, you have utilized 10.5 days (May: 1 day, July: 1 day, August: 1.5 days, October: 4 days, April & May: 2 days each). While 16 days in May were Leave Without Pay (LWP), resulting in a total deduction of 2.5 days from your leave balance.

    Even if your salary is directly credited to your bank account via NEFT, ensure you receive a monthly salary slip for your records. This slip should detail the total number of days payable, days paid, days absent in the month, PF & ESI numbers, etc. Some companies provide this information in digital format, which can also be beneficial.

    If your relevant authority is not providing the salary slip, they may be trying to conceal an error. In such a situation, consider escalating the matter to your Head of Department or other senior members following your organization's conflict resolution procedure.

    Regardless of the circumstances, make sure to insist on receiving your monthly salary slip. I hope this clarifies your situation for further action.

    Regards,
    Suresh

    From India, Pune
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    Based on the facts mentioned in your email, according to your company's leave policy, you are entitled to 20 days of leave for the period June-March. The Leave-Without-Pay (LOP) deduction for this period is likely a result of a misunderstanding. If the manager in question remains adamant, consider escalating the matter to a higher authority in the hierarchy whom you believe will comprehend the reasoning behind the issue.

    Thanks,
    Robin

    From India, Kochi
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    If you are talking about your SL, basically these are on a pro-rata basis. SL is subject to be carried forward if not taken. Leaves are not on a financial year (Mar-Apr) basis; they are on a calendar year basis, and you will get your new leaves in Jan '2013. Only CL is to be exhausted in the same year as they are not carried forward. EL/PL - on a 20-day working basis, you are entitled to 1 EL/PL, and eligibility is after 280 days.

    Formula for Calculating Sick Leave

    Suppose in your company there are 15 SL. If you had joined in April on or before the 15th, then it is: 15/12*9=11.25, meaning 11 SL. You will count from April to December, i.e., 9 months (including April), and after the 15th, you will not count April, then there will be 8 months: 15/12*8=10 SL.

    Regards,
    Vineet

    From India, Dehra Dun
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    First, please clarify how many days in a workweek an employee works for leave (CL/SL) to accrue. Secondly, you joined in February and did not avail of leave, so your leave lapsed on March 31 of that year. You worked through April and up to May 10. This means that as of April 30, you had two days of leave, i.e., 1 CL and 1 Sick leave (SL). Since the methodology for accruing leave is not clear, it is presumed that after working for a full month, you become eligible for 1 CL and 1 SL. If that is the case, the recovery of two days' salary for the month of May is in order since you received two days' salary in excess.

    Thank you.

    From India, Mumbai
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    Normally, if an employee is sick, they can utilize Sick Leave (SL) as well as Casual Leave (CL). However, when an employee is taking CL, they cannot use SL. Perhaps on this basis, your 2 days' salary must have been deducted in October. If they are not providing you with the pay slip, please check in the muster roll.

    Regards,
    Nagarathna
    [Phone Number Removed For Privacy Reasons]

    From India, Bangalore
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    Hi, In some Company the SL(Sick Leave) in not carry forward in next month. i think the same will follow in u r concern also. Regards, Sheik.M
    From India, Chennai
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    Understanding Leave Policies and Their Implications

    If it is 1 casual leave and 1 sick leave per month, it cannot be assumed that all 24 leaves can be taken in one stretch. If your company has the facility for leave encashment, then you will receive the benefits as per the company's policies. Otherwise, taking more than 2 leaves will result in a loss of pay for you.

    Regards,
    Prem

    From India, Cochin
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    pl accumulated by you would be credited to your account in the next calender year as opening balance according to your company policy hence the lop. you may clarify this with your hr chap
    From India, Delhi
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    Kindly check and calculate the number of leave days exhausted in May and compare the result with the entitled leave days. I bet you may have accumulated outstanding leave days. In a situation like this, I think if you are an HR person, you should advise your organization to improve their payroll administration by providing payslips for staff.
    From Nigeria, Ibadan
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    Dear Anushree,

    As per your statement, you have mentioned that in your company there is a system of 1 casual leave and 1 sick leave a month. So, this means that it is 24 leaves a year. If we don't take them, they will be accumulated, and we can take them later but before the financial year ends. After that, those leaves would lapse.

    This implies that there are no paid or earned leaves. Sick leaves are for when you are sick, and casual leaves are for any other reason.

    In your case, you worked for 10 days in May and were absent for 21 days.

    Leave Accumulation and Usage

    The first thing you need to check with your company is whether a person can avail of all leaves at once before they are accumulated or if you receive them on a per-month basis.

    In the first scenario, if you are eligible to avail all leaves, then in your case, you were absent for 21 days and had taken 4 leaves for the months of April and May. If your company had adjusted all your leaves with your absence, then they should have paid you the full May month salary (without any deductions), and there will be three casual leaves remaining in your account for the whole year. After consuming these 3 leaves, your salary will be deducted if you take any extra leaves.

    In the second scenario, if you are eligible to take only accumulated leaves, then you will receive 14 days' salary (10 days worked and 4 accumulated leaves).

    Then, you took 1 leave in July, 1.5 in August, and 4 in October.

    Leave Deductions and Salary

    By October, you had accumulated another 5 casual and 5 sick leaves. You had taken a total of 6.5 leaves by October.

    If any leave you took from July to October was a sick leave (due to a medical reason, etc.) or a general leave. If any were due to sickness, there should be no deduction. But if there were no leaves due to sickness, and you took 1.5 leaves more than accumulated in casual leaves, the company will deduct one and a half (1.5) days from your salary.

    Even in the second scenario, they have deducted half a day's salary more.

    Please discuss this with your HR department.

    Hope this resolves your issue.

    Regards,
    Neeraj

    Manager HR & Admin

    From India, Mumbai
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    Whenever anyone is new to a company, they may not fully adhere to the company's HR rules and regulations, which can vary between a public company and private companies as well.

    Understanding Salary Receipts and Leave Policies

    According to labor law, you should receive a hard copy of your salary receipt detailing the breakdown of various components such as basic salary, allowances, and income tax deductions. Additionally, you should have an appointment letter outlining conditions related to paid leave, sick leave, casual leave, and leave without pay. This letter may specify which leaves accrue and which do not, and how different types of leave are distributed throughout the months based on the financial or calendar year.

    Checking Company Policies

    Based on the information you provided in this forum, it appears that your company is a new private company. Please check if your company has shared all HR rules and regulations on their intranet. I have experience working in both the public and private sectors within the financial market. Many private companies publish HR-related rules on their internal web portals, allowing employees to download their salary receipts and understand any deductions.

    Importance of Accessing Salary Receipts

    If you are unable to access your salary receipt, obtaining Form-16 will be challenging, hindering your ability to file income tax returns. I recommend obtaining your salary receipts (including working day details) for all the months you have worked thus far before making any conclusions.

    Thank you.
    Regards.

    From India, Lucknow
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    I think your company is wrong. From your own words, you are entitled to FOUR DAYS LEAVE FOR YOUR WORK from your starting working, of which 4 days were paid in the month of May. Afterwards, your leave entitlement is as follows: 1 day in May, 2 days in June, 1 and a half days in July, 1 day in August, and -2 days in September. The total leave accrued is 6 and a half days. However, after deductions for the half day taken in July and one day in August, you have 6 and a half days remaining. Therefore, when you take 4 days leave in September, the company should provide leave with salary. Please do not overlook this and address it diplomatically with the HR department. If you still have doubts, I am willing to draft a letter to your HR department and send it to you. Please provide your personal email so I can send it to you, if you don't mind.

    Regards,
    Venkat

    [Email Removed For Privacy Reasons]

    From India, Bangalore
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    Understanding Leave Policies

    In the appointment order, all the terms and conditions are shown, which include leave as well. So, in my opinion, you should refer to your appointment order. Leaves are generally credited to the account on a calendar year basis, whereas you are saying on a financial year basis. This, also, your appointment order will clarify. Whatever the position may be, the leave is granted on a pro-rata basis. However, it is still up to the administration to grant the leave not due and adjust the same when earned in the future, allowing you the payment of salary against leave not due.

    From India, Bhopal
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    I think they did not give you any leave in May because you were on Leave Without Pay. Since they granted 4 days of leave in May (2 for April and 2 for May), they adjusted those two days in October as an afterthought.

    Regards,
    SAIBHAKTA

    From India, New Delhi
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    Understanding Leave Entitlement and Salary Deductions

    You are saying a system of 1 casual leave and 1 sick leave a month. These leaves are applicable during a calendar year, not in a financial year. The company might have issued a leave sanction order showing therein the kind of leave sanctioned by showing the number of days against each kind of leave. Since no salary is paid in May except for 14 days, this interprets to mean that no salary is paid for the period you are not eligible during a sick period.

    Since the commencement of June (if you have joined on 1st June itself), you are again eligible for proportionate leave. You have availed 2 and a half days of leave in July and August against your eligibility of 4 days of casual leave. It is not clear whether these leaves availed are on sick grounds or for personal reasons. Yet, I suppose these are casual leave. I think in October, the 4 days of leave availed are also casual and not sick.

    This means from June to October, you have earned 5 days of casual leave and availed 6 and a half days, hence why 2 days of salary are deducted. Here it is clear that sick leave can only be availed for health reasons and not personal reasons, but casual leave can be availed for health reasons as well. This means your sick leave must be accumulated and available in your credit. In fact, you should not combine both kinds of leave since they are meant for separate purposes. I think this will remove your doubt. You may confirm with your company.

    From India, Bhopal
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