Hi, This is my company Policy for EL- Earned Leave (EL) means leave earned in respect of period of service with the company and granted on full day.
Every staff 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;
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 privilege leave for every such completed period;
III - EL is accrued @ 1.25 days for every month worked and can only be availed after confirmation. A person earns it and it is accumulated. He can avail it only in the next year or working after 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 maximum 45 days only at the time of separation from the Company
If an employee resigns, what should be the leave encashment number for him, if he joins in March 2022 and leaves the company in Oct 2024?
From India, Delhi
1Every staff 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;
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 privilege leave for every such completed period;
III - EL is accrued @ 1.25 days for every month worked and can only be availed after confirmation. A person earns it and it is accumulated. He can avail it only in the next year or working after 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 maximum 45 days only at the time of separation from the Company
If an employee resigns, what should be the leave encashment number for him, if he joins in March 2022 and leaves the company in Oct 2024?
From India, Delhi
Hi,
First of all, the meaning of EL and PL are different.
Earned Leave (EL) is a type of paid leave granted to employees for their service after completion of a month. The accrual rate of EL is 1-1.5 days/month (it varies from organization to organization). The balanced EL or unused EL may be carried forward to next year which is not exceeded to 30days (also varies from organization to organization).
PL is similar to EL, but often granted annually.
If your organization's EL policy allows to accumulate a maximum of 45 numbers of EL, then the encashment will be made for 45 days only.
Regards
Tapan Kumar
From India, Cuttack
First of all, the meaning of EL and PL are different.
Earned Leave (EL) is a type of paid leave granted to employees for their service after completion of a month. The accrual rate of EL is 1-1.5 days/month (it varies from organization to organization). The balanced EL or unused EL may be carried forward to next year which is not exceeded to 30days (also varies from organization to organization).
PL is similar to EL, but often granted annually.
If your organization's EL policy allows to accumulate a maximum of 45 numbers of EL, then the encashment will be made for 45 days only.
Regards
Tapan Kumar
From India, Cuttack
Thanks Tapan for your reply, here issue is My Finance team is saying as per the policy I shared above, every year we carry forward 5EL to next year's balance, so the carry forward number is only considered for EL encashment not the accrual balance, hence confused about this. Can you please refer to my policy mentioned above and share your insights?
From India, Delhi
From India, Delhi
Hi,
It seems to PL not EL because the PL is granted annually while the EL is accrued monthly. Both has the different meaning. The PL usually has a fixed annual limit whereas the EL has a cumulative limit. So, may be the company has a policy of not transfer the maximum of 5 numbers of PL annually.
Regards
Tapan Kumar
From India, Cuttack
It seems to PL not EL because the PL is granted annually while the EL is accrued monthly. Both has the different meaning. The PL usually has a fixed annual limit whereas the EL has a cumulative limit. So, may be the company has a policy of not transfer the maximum of 5 numbers of PL annually.
Regards
Tapan Kumar
From India, Cuttack
please help me with this (for Maharashtra perspective of Factory act, rules and Shop and Est act)
1. as per Maharashtra Shop and Est act and Factory act and rules Maharashtra how much PL.SL, EL applicable and how much can be carry forward ?
2. as per which rule S-E and Factory which disallow clubbing of certain leaves.
3. Sandwhich leave ... any specific rule (i cant see see any as if Mgt or emply ask under which act its come i dont know ...
4.for New joinee generally leave applied on confirmation... but in factory rules Maharastra is mention emloyee elegible in 90 day .... nothing mention in Maha S- E act ..if yes ple help
5. EL payout on Basic+Da or Gross?
thanks
From India, Mumbai
1. as per Maharashtra Shop and Est act and Factory act and rules Maharashtra how much PL.SL, EL applicable and how much can be carry forward ?
2. as per which rule S-E and Factory which disallow clubbing of certain leaves.
3. Sandwhich leave ... any specific rule (i cant see see any as if Mgt or emply ask under which act its come i dont know ...
4.for New joinee generally leave applied on confirmation... but in factory rules Maharastra is mention emloyee elegible in 90 day .... nothing mention in Maha S- E act ..if yes ple help
5. EL payout on Basic+Da or Gross?
thanks
From India, Mumbai
To calculate earned leave encashment for an employee who joined in March 2022 and leaves in October 2024, follow these steps:
### 1. **Understand Leave Entitlement**
- Typically, employees are entitled to a certain number of earned leaves per year, often calculated as:
- **15 to 30 days per year** (depending on company policy).
- For this example, let's assume the policy grants **15 days of earned leave per year**.
### 2. **Calculate Total Earned Leave**
- **Duration of Employment**:
- From March 2022 to October 2024 is approximately 2 years and 7 months.
- **Earned Leave Calculation**:
- For 2 full years: 15 days/year × 2 = 30 days.
- For the remaining 7 months (assuming a pro-rata calculation):
- 15 days/year ÷ 12 months = 1.25 days/month.
- 1.25 days × 7 months = 8.75 days (usually rounded to the nearest whole number).
- **Total Earned Leave**: 30 + 9 (rounded) = **39 days**.
### 3. **Leave Encashment**
- If the company allows encashment of earned leave, the employee is entitled to be paid for the accrued days.
- **Calculation for Encashment**:
- Determine the employee’s basic salary or average salary for encashment purposes.
- Multiply the number of encashable leave days by the daily wage (monthly salary divided by the number of working days in the month).
### Example Calculation
- **Monthly Salary**: ₹30,000.
- **Daily Wage**: ₹30,000 ÷ 30 = ₹1,000.
- **Encashment Amount**: 39 days × ₹1,000 = ₹39,000.
### 4. **Company Policy and Legal Compliance**
- Ensure compliance with company policies regarding leave encashment.
- Check any legal provisions that may affect encashment, particularly if the company has more generous leave policies.
### Summary
In this case, the employee would be entitled to encashment for approximately 39 days of earned leave upon leaving the company in October 2024. Always ensure to confirm specific policies and legal guidelines with your HR department or legal counsel.
From India, Madras
### 1. **Understand Leave Entitlement**
- Typically, employees are entitled to a certain number of earned leaves per year, often calculated as:
- **15 to 30 days per year** (depending on company policy).
- For this example, let's assume the policy grants **15 days of earned leave per year**.
### 2. **Calculate Total Earned Leave**
- **Duration of Employment**:
- From March 2022 to October 2024 is approximately 2 years and 7 months.
- **Earned Leave Calculation**:
- For 2 full years: 15 days/year × 2 = 30 days.
- For the remaining 7 months (assuming a pro-rata calculation):
- 15 days/year ÷ 12 months = 1.25 days/month.
- 1.25 days × 7 months = 8.75 days (usually rounded to the nearest whole number).
- **Total Earned Leave**: 30 + 9 (rounded) = **39 days**.
### 3. **Leave Encashment**
- If the company allows encashment of earned leave, the employee is entitled to be paid for the accrued days.
- **Calculation for Encashment**:
- Determine the employee’s basic salary or average salary for encashment purposes.
- Multiply the number of encashable leave days by the daily wage (monthly salary divided by the number of working days in the month).
### Example Calculation
- **Monthly Salary**: ₹30,000.
- **Daily Wage**: ₹30,000 ÷ 30 = ₹1,000.
- **Encashment Amount**: 39 days × ₹1,000 = ₹39,000.
### 4. **Company Policy and Legal Compliance**
- Ensure compliance with company policies regarding leave encashment.
- Check any legal provisions that may affect encashment, particularly if the company has more generous leave policies.
### Summary
In this case, the employee would be entitled to encashment for approximately 39 days of earned leave upon leaving the company in October 2024. Always ensure to confirm specific policies and legal guidelines with your HR department or legal counsel.
From India, Madras
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