Should we pro rate the leave credit for the retirement year or Full year’s eligibility to be given? do we have rule for same ? If so pls share
From India, Mumbai
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1From India, Mumbai
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Dear Ram,
The accrual of leave by an employee is always concurrent with his/her service under the same employer. Therefore, in the event of any regular termination of employment such as retirement or resignation that may occur in the middle of a year, the calculation of any leave should be done on a prorated basis only.
From India, Salem
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The accrual of leave by an employee is always concurrent with his/her service under the same employer. Therefore, in the event of any regular termination of employment such as retirement or resignation that may occur in the middle of a year, the calculation of any leave should be done on a prorated basis only.
From India, Salem
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I may add, the practice of giving credit to employees' leave accounts differs from employer to employer. For example, some may follow the calendar year, while others follow the completion of service. Generally, for the purpose of CL, the calendar year is followed, whereas for EL/PL/SL, the completed year of service is followed, which is also correct.
For recruitment, waiting until the completion of one full year of service may pose a few practical problems, especially in cases of emergency and urgency. In order to avert the risk of granting LWP, it is common practice that CL could be granted proportionately for the months served, or sometimes even in advance to be adjusted in future credits. This is possible only where flexibility powers are delegated to approving authorities.
Sometimes, compensatory holidays are used to make adjustments like this when OT is involved. This may be possible at the worker, junior executive, or shop floor levels, needless to say, in respect of go-getters. All these adjustment methodologies may be possible in small and medium entities. Difficulties are likely to be experienced where the attendance recording system is linked to electronic devices as they are directly connected to payroll processing. In any case, pro-rata credit should solve employees' emergencies.
From India, Bangalore
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For recruitment, waiting until the completion of one full year of service may pose a few practical problems, especially in cases of emergency and urgency. In order to avert the risk of granting LWP, it is common practice that CL could be granted proportionately for the months served, or sometimes even in advance to be adjusted in future credits. This is possible only where flexibility powers are delegated to approving authorities.
Sometimes, compensatory holidays are used to make adjustments like this when OT is involved. This may be possible at the worker, junior executive, or shop floor levels, needless to say, in respect of go-getters. All these adjustment methodologies may be possible in small and medium entities. Difficulties are likely to be experienced where the attendance recording system is linked to electronic devices as they are directly connected to payroll processing. In any case, pro-rata credit should solve employees' emergencies.
From India, Bangalore
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Dear Colleague,
The Factories Act and Shops Act define a year as a calendar year for the purpose of PL/EL. For partial service in the calendar year, pro-rata leave is credited on the 1st of January of the subsequent year.
Regards, Vinayak Nagarkar HR Consultant
From India, Mumbai
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The Factories Act and Shops Act define a year as a calendar year for the purpose of PL/EL. For partial service in the calendar year, pro-rata leave is credited on the 1st of January of the subsequent year.
Regards, Vinayak Nagarkar HR Consultant
From India, Mumbai
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