Hi,
Can anyone shed some light on whether it is a statutory requirement to pay the earned/paid leave to an employee who is on probation and has resigned during probation? Or is it dependent on the organization and the rules they establish?
Rahul Verma
From India, Delhi
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1Can anyone shed some light on whether it is a statutory requirement to pay the earned/paid leave to an employee who is on probation and has resigned during probation? Or is it dependent on the organization and the rules they establish?
Rahul Verma
From India, Delhi
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I think you need to set a certain limit, say one year, i.e., an employee should complete at least one year in that organization before they can ask for repayment of leaves after resignation. What was the probation period of this employee? An employee who is on probation should not be paid PL, etc. Even though I have just entered the corporate world, I have mentioned only what I know, so I would request seniors to help us.
Regards,
Purva
From India, Mumbai
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Regards,
Purva
From India, Mumbai
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This is an SOS call to all seniors and seasoned professionals to help with the above issue. Thank you, Rahul.
(*For further information, the employee who has resigned is on probation and joined 6 months ago. Our company has a 1-year probation period.
From India, Delhi
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(*For further information, the employee who has resigned is on probation and joined 6 months ago. Our company has a 1-year probation period.
From India, Delhi
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Dear Rahul,
This all depends on the company's leave policy. In most organizations, while preparing the same, it is recorded as 7 days during the probation period, which lasts for 6 months. If one resigns during the aforementioned period, we ask for a 7-day notice. After serving the notice and accepting the resignation, while preparing the Full & Final settlement of the said employee, we do encash their remaining leaves from that period.
Regards,
Amit Seth.
From India, Ahmadabad
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This all depends on the company's leave policy. In most organizations, while preparing the same, it is recorded as 7 days during the probation period, which lasts for 6 months. If one resigns during the aforementioned period, we ask for a 7-day notice. After serving the notice and accepting the resignation, while preparing the Full & Final settlement of the said employee, we do encash their remaining leaves from that period.
Regards,
Amit Seth.
From India, Ahmadabad
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Hi,
I am an MBA-HR fresher and recently formulated a leave policy for my organization. My boss wants to deduct the salary of employees who are on probation, regardless of whether it is sanctioned or unsanctioned leave. However, I feel that even though an employee is on probation, their salary should not be deducted if they take leave.
I want to know if there is any law regarding this or if it totally depends on the employer.
Regards,
Purva
From India, Mumbai
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I am an MBA-HR fresher and recently formulated a leave policy for my organization. My boss wants to deduct the salary of employees who are on probation, regardless of whether it is sanctioned or unsanctioned leave. However, I feel that even though an employee is on probation, their salary should not be deducted if they take leave.
I want to know if there is any law regarding this or if it totally depends on the employer.
Regards,
Purva
From India, Mumbai
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Dear Rahul,
This question depends on the company's policy. It is also always mentioned in the company's Standing Orders. Normally, companies have a Leave Policy wherein employees are granted 7 CL, 7 SL, and 24 EL/PL. The probation period might be, let's say, 6 months.
In my personal experiences with 3-4 MNCs, the leave account may start from the date of joining; however, you can actually take that benefit after confirmation (when the probation period is over).
In your case, you are not supposed to pay anything with respect to leave to the employee unless your policy mentions anything on that part.
Regards, Shaunak Marulkar
From India, Mumbai
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This question depends on the company's policy. It is also always mentioned in the company's Standing Orders. Normally, companies have a Leave Policy wherein employees are granted 7 CL, 7 SL, and 24 EL/PL. The probation period might be, let's say, 6 months.
In my personal experiences with 3-4 MNCs, the leave account may start from the date of joining; however, you can actually take that benefit after confirmation (when the probation period is over).
In your case, you are not supposed to pay anything with respect to leave to the employee unless your policy mentions anything on that part.
Regards, Shaunak Marulkar
From India, Mumbai
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Dear Purva It depends on the company policy. Your company is not liable to pay for EL to any employee if he leaves in probation period. Regards Neetu
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If your company is registered under Shops * establishment Act/Factory Act - then the employee is entitled to get...refer law
From India, Hyderabad
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From India, Hyderabad
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Dear Rahul Verma,
Firstly, I would like to state that your organization will definitely be covered under the Shop & Estb. Act or Factories Act. Therefore, it is a statutory requirement to pay leave salary (Leave Encashment) at the time of making full and final payment to an employee, whether the employee is confirmed or on probation.
In most organizations, there may be a rule in their leave policy that a probationer is not entitled to avail earned leave. However, earned leave shall be credited to his or her leave account upon completion of one year (240 days or two-thirds of available days in a calendar year), which includes the probation period.
Thank you,
Mohd. Arif Khan
mak007hr@rediffmail.com
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Firstly, I would like to state that your organization will definitely be covered under the Shop & Estb. Act or Factories Act. Therefore, it is a statutory requirement to pay leave salary (Leave Encashment) at the time of making full and final payment to an employee, whether the employee is confirmed or on probation.
In most organizations, there may be a rule in their leave policy that a probationer is not entitled to avail earned leave. However, earned leave shall be credited to his or her leave account upon completion of one year (240 days or two-thirds of available days in a calendar year), which includes the probation period.
Thank you,
Mohd. Arif Khan
mak007hr@rediffmail.com
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Hi,
Usually, in many companies, employees are not entitled to any earned leave (EL) during their probation period. According to the law, a worker will be entitled to one day of EL for every 20 days of actual working, excluding Sundays and other holidays. To earn one day of EL, an employee must be physically present in the workplace for 20 days. For staff-level employees, the entitlement depends on the company's leave policy, with most companies granting 21 days of EL. Additionally, EL is only earned after completing the probation period.
Regards, Priya
From India, Bangalore
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Usually, in many companies, employees are not entitled to any earned leave (EL) during their probation period. According to the law, a worker will be entitled to one day of EL for every 20 days of actual working, excluding Sundays and other holidays. To earn one day of EL, an employee must be physically present in the workplace for 20 days. For staff-level employees, the entitlement depends on the company's leave policy, with most companies granting 21 days of EL. Additionally, EL is only earned after completing the probation period.
Regards, Priya
From India, Bangalore
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