My company is registered under the Delhi Shops and Establishment Act. In my corporate policy of Earned Leave, which is:
Earned Leave (EL) Policy
Earned Leave (EL) means leave earned in respect of the period of service with the company and granted on a full day. Every staff member and official is entitled to privilege leave for a total period of not less than fifteen (15) working days after every twelve months of continuous employment with pay in a financial year. Employees must submit their leave application through HRIS at least a week prior to their preferred dates of availing leave. Employees will take leave only after obtaining approval. In the event that an employee goes on leave without approval, it will be deemed that the employee has been absent from work without permission, and the period of absence will be treated as leave without pay. Employees who join in the middle of the year will be entitled to annual leave on a pro-rated basis, subject to completion of a year.
Leave Restrictions
I. EL cannot be clubbed with Casual Leave (CL).
II. An employee who has completed a period of four months in continuous employment shall be entitled to not less than five days of privilege leave for every such completed period.
III. EL is accrued at a rate of 1.25 days for every month worked and can only be availed after confirmation. A person earns it and it is accumulated. They can avail it only in the next year or after working 180 days.
IV. A maximum of 5 days EL can be rolled over to the next year, and the maximum accumulated/encashable EL would be 45 days. The leave encashment can be done for a maximum of 45 days only at the time of separation from the company.
My query is if an employee X joins the company in March 2022 and leaves in October 2024, how many EL will he be eligible for?
Please guide.
Location: Bengaluru, India
Tags: leave encashment, earned leave, casual leave, privilege leave, shops and establishment act, Country-India, City-India-Bengaluru
From India, Bengaluru
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Earned Leave (EL) Policy
Earned Leave (EL) means leave earned in respect of the period of service with the company and granted on a full day. Every staff member and official is entitled to privilege leave for a total period of not less than fifteen (15) working days after every twelve months of continuous employment with pay in a financial year. Employees must submit their leave application through HRIS at least a week prior to their preferred dates of availing leave. Employees will take leave only after obtaining approval. In the event that an employee goes on leave without approval, it will be deemed that the employee has been absent from work without permission, and the period of absence will be treated as leave without pay. Employees who join in the middle of the year will be entitled to annual leave on a pro-rated basis, subject to completion of a year.
Leave Restrictions
I. EL cannot be clubbed with Casual Leave (CL).
II. An employee who has completed a period of four months in continuous employment shall be entitled to not less than five days of privilege leave for every such completed period.
III. EL is accrued at a rate of 1.25 days for every month worked and can only be availed after confirmation. A person earns it and it is accumulated. They can avail it only in the next year or after working 180 days.
IV. A maximum of 5 days EL can be rolled over to the next year, and the maximum accumulated/encashable EL would be 45 days. The leave encashment can be done for a maximum of 45 days only at the time of separation from the company.
My query is if an employee X joins the company in March 2022 and leaves in October 2024, how many EL will he be eligible for?
Please guide.
Location: Bengaluru, India
Tags: leave encashment, earned leave, casual leave, privilege leave, shops and establishment act, Country-India, City-India-Bengaluru
From India, Bengaluru
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Employee X joined in March 2022 and left in October 2024, which is a total of 31 months of service. According to the company's policy, earned leave (EL) is accrued at a rate of 1.25 days per month worked and can only be availed after confirmation. An individual earns EL and accumulates it, being able to avail it only in the next year or after working for 180 days.
Calculation:
- EL accrued per month = 1.25 days
- Total months of service = 31 months
- Total EL accrued = 1.25 days/month x 31 months = 38.75 days
Since a maximum of 5 days EL can be rolled over to the next year and the maximum accumulated/encashable EL is 45 days, Employee X will be eligible for the maximum of 45 days of EL upon separation from the company in October 2024.
Therefore, Employee X will be eligible for 45 days of earned leave upon leaving the company in October 2024.
Ensure to refer to the Delhi Shops and Establishment Act or the company's specific policies for any additional details or provisions regarding earned leave entitlement.
From India, Gurugram
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54Calculation:
- EL accrued per month = 1.25 days
- Total months of service = 31 months
- Total EL accrued = 1.25 days/month x 31 months = 38.75 days
Since a maximum of 5 days EL can be rolled over to the next year and the maximum accumulated/encashable EL is 45 days, Employee X will be eligible for the maximum of 45 days of EL upon separation from the company in October 2024.
Therefore, Employee X will be eligible for 45 days of earned leave upon leaving the company in October 2024.
Ensure to refer to the Delhi Shops and Establishment Act or the company's specific policies for any additional details or provisions regarding earned leave entitlement.
From India, Gurugram
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