I have gone through the relevant provisions of Shops and Establishments Act, (TN) and also the Factories Act.
Fact 1: Earned leave is payable only when an employee completes 240 days of continuous service.
Fact 2: This continuous service includes the number of days spend on "probation"
Fact 3: Organizations cannot fix probation period as one year and escape the EL liability
Fact 4: In almost all organizations, an employee is not entitled to any earned leave in the first year of service, because, technically he has not earned any leave in the previous year.
Fact 5: If an employee has completed one year of continuous service, he becomes eligible for the number of days he/she is entitled to, as per the company policy.
Fact 6: Once a specific number of days is earned by the employee, companies/establishments/organizations have to credit that many number of days (xx days), in advance, in the subsequent year(s).
Fact 7: Law specifically says that the employee is entitled to xx number of days in the subsequent year, but
Fact 8: Law does not specify that xx number of days has to be credited upfront in the subsequent year(s).
Fact 8: This allows some employers to resort to some thing called "pro rated" credit every month.
Fact 9: This practice, takes away the rights of the employee to avail the leave he/she has earned in bulk to go on vacation etc.
Fact 10: The defeats the very purpose of granting earned leave, (which is giving the opportunity to the employees to de-stress himself/herself after one year of hard work.
Comments are welcome
B S Balaji, MBA, LL.B.
Not practising now.
From India, Madras
Fact 1: Earned leave is payable only when an employee completes 240 days of continuous service.
Fact 2: This continuous service includes the number of days spend on "probation"
Fact 3: Organizations cannot fix probation period as one year and escape the EL liability
Fact 4: In almost all organizations, an employee is not entitled to any earned leave in the first year of service, because, technically he has not earned any leave in the previous year.
Fact 5: If an employee has completed one year of continuous service, he becomes eligible for the number of days he/she is entitled to, as per the company policy.
Fact 6: Once a specific number of days is earned by the employee, companies/establishments/organizations have to credit that many number of days (xx days), in advance, in the subsequent year(s).
Fact 7: Law specifically says that the employee is entitled to xx number of days in the subsequent year, but
Fact 8: Law does not specify that xx number of days has to be credited upfront in the subsequent year(s).
Fact 8: This allows some employers to resort to some thing called "pro rated" credit every month.
Fact 9: This practice, takes away the rights of the employee to avail the leave he/she has earned in bulk to go on vacation etc.
Fact 10: The defeats the very purpose of granting earned leave, (which is giving the opportunity to the employees to de-stress himself/herself after one year of hard work.
Comments are welcome
B S Balaji, MBA, LL.B.
Not practising now.
From India, Madras
Dear Balaji,
From your post your question does not become clear. as it is not clear whether the post is a question or a discussion. However, the word "EARNED" is in past tense, which denotes something happened for or in the past. According, the organisations are free to give credit of earned leave after that is actually earned by rendering requisite service by the employee making him eligible for that kind of leave. Even otherwise also, leave cannot be claimed as a matter of right as and when the employee desires. Except in emergency of a case, leave is granted at the convenience of the employer as and when he feels that the interests of service of the organisation would not get harmed in the absence of the employee, being on leave. So, neither any right of employee is infringed, nor that defeats the purpose of granting earned leave.
The employer, however, has the discretion to credit the leave in advance of actual earning. For example, in Government departments earned leave is credited in advance for every six months, which an employee can avail any time even during that period. But, if he leaves the department, amount equivalent to minus credit is recovered from his full and final settlement. The Governments have adopted this policy, as almost none of the employee prefers to leave a Government job. But in companies, most of the employees try to leave job when he gets an opportunity to grab another attractive job.
From India, Delhi
387From your post your question does not become clear. as it is not clear whether the post is a question or a discussion. However, the word "EARNED" is in past tense, which denotes something happened for or in the past. According, the organisations are free to give credit of earned leave after that is actually earned by rendering requisite service by the employee making him eligible for that kind of leave. Even otherwise also, leave cannot be claimed as a matter of right as and when the employee desires. Except in emergency of a case, leave is granted at the convenience of the employer as and when he feels that the interests of service of the organisation would not get harmed in the absence of the employee, being on leave. So, neither any right of employee is infringed, nor that defeats the purpose of granting earned leave.
The employer, however, has the discretion to credit the leave in advance of actual earning. For example, in Government departments earned leave is credited in advance for every six months, which an employee can avail any time even during that period. But, if he leaves the department, amount equivalent to minus credit is recovered from his full and final settlement. The Governments have adopted this policy, as almost none of the employee prefers to leave a Government job. But in companies, most of the employees try to leave job when he gets an opportunity to grab another attractive job.
From India, Delhi
Thank you Mr.Dhingra for replying to my post.
Mine was intended to be a discussion and not a question.
I agree with you that employees cannot be claimed as a matter of right.
It is a right nevertheless, in the sense, the employer is required to grant leave as provided by the relevant statute, provided:
1) the employee plans sufficiently in advance and notifies the employer about his intention to go on leave (which, many companies call planned leave)
2)Employer also cannot refuse a leave without reasonable grounds.
The substance of my post was to indicate that many employers do not give the credit the leave earned after one year -240 days of continuous service. Many employers have devised their own policies to the effect that for the first year of employment, employees are not entitled to any EL at all.
From the commencement of second year onwards, they give earned leave credit prorated every month.
For example, many companies follow this:
Employee:A
DOJ:01.01.2012
Leave Policy: 12 days EL per year (the minimum required under TN S&E Act, 1947)
On 01.01.2013: EL Opening Balance=0, fresh credit of EL earned in 2012=0
On 31.01.2013:EL Opening Balance=0, EL credit for January, 2013=1 day, Closing Balance=1 day
Whereas, it should be:
On 01.01.2013 - Opening Balance=0, Fresh EL Credit for 2012=12 days, Closing Balance=12 days.
I am not dwelling how this leave can be availed, how early the leave request must be submitted etc.
Please comment.
From India, Madras
Mine was intended to be a discussion and not a question.
I agree with you that employees cannot be claimed as a matter of right.
It is a right nevertheless, in the sense, the employer is required to grant leave as provided by the relevant statute, provided:
1) the employee plans sufficiently in advance and notifies the employer about his intention to go on leave (which, many companies call planned leave)
2)Employer also cannot refuse a leave without reasonable grounds.
The substance of my post was to indicate that many employers do not give the credit the leave earned after one year -240 days of continuous service. Many employers have devised their own policies to the effect that for the first year of employment, employees are not entitled to any EL at all.
From the commencement of second year onwards, they give earned leave credit prorated every month.
For example, many companies follow this:
Employee:A
DOJ:01.01.2012
Leave Policy: 12 days EL per year (the minimum required under TN S&E Act, 1947)
On 01.01.2013: EL Opening Balance=0, fresh credit of EL earned in 2012=0
On 31.01.2013:EL Opening Balance=0, EL credit for January, 2013=1 day, Closing Balance=1 day
Whereas, it should be:
On 01.01.2013 - Opening Balance=0, Fresh EL Credit for 2012=12 days, Closing Balance=12 days.
I am not dwelling how this leave can be availed, how early the leave request must be submitted etc.
Please comment.
From India, Madras
Your observation, as "On 01.01.2013 - Opening Balance=0, Fresh EL Credit for 2012=12 days, Closing Balance=12 days," is quite correct. Should be like that only. Credit at the close of the year is a must.
From India, Delhi
From India, Delhi
do not mind friends, If I am wrong so get back and let me know???
but is actually Wrong as per Act?????????? Question of question mark?????
no company is into kind of practices and can not be into, if any of doing so is breaching,,,,,,,,
Best Regards
Nandan S Negi
From India, Delhi
but is actually Wrong as per Act?????????? Question of question mark?????
no company is into kind of practices and can not be into, if any of doing so is breaching,,,,,,,,
Best Regards
Nandan S Negi
From India, Delhi
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