Hi rahul,
factories act clearlyanswers your question. An employe becomes eligible for EL/PL once he completes 12 months, which is calculated at the rate of one leave for every 2o days of mandays performed. in the event of resignation before completing one year he becomes eligible to claim encashment of El earned as per above calculation. this is a mandatory rule which is applicable even during the probationary period.
2factories act clearlyanswers your question. An employe becomes eligible for EL/PL once he completes 12 months, which is calculated at the rate of one leave for every 2o days of mandays performed. in the event of resignation before completing one year he becomes eligible to claim encashment of El earned as per above calculation. this is a mandatory rule which is applicable even during the probationary period.
Dear Purva,
Your Boss is right.
If an employee remains absent during probation period is not entittled to any leave. If the employee remains absent or is on leave during probation, his salary is deducted for those no.of days.
I think this is followed in almost every organisation.
Regards,
Nimish Joshi
From India, Mumbai
Your Boss is right.
If an employee remains absent during probation period is not entittled to any leave. If the employee remains absent or is on leave during probation, his salary is deducted for those no.of days.
I think this is followed in almost every organisation.
Regards,
Nimish Joshi
From India, Mumbai
Dear Purva,
I want just add. If a company has the policy of granting CL/SL then an employee becomes eligeble to avail either Sick Leave or casual leave even during probation period. Most companies deny leave only to temporary, casual, trainees category of employees.
But none of the above leaves are mandatory and its left to the discretion of the management.
Only EL is mandatory as per law.
regards
Prashanth
I want just add. If a company has the policy of granting CL/SL then an employee becomes eligeble to avail either Sick Leave or casual leave even during probation period. Most companies deny leave only to temporary, casual, trainees category of employees.
But none of the above leaves are mandatory and its left to the discretion of the management.
Only EL is mandatory as per law.
regards
Prashanth
WELL....IT IS A POINT OF DEBATE....BUT IT DEPENDS ON THE COMPANY LEAVE POLICY...LIKE IN OUR CO...WE DONT ENCASH OR GIVE LEAVES TO PROBATIONERS......BUT YES AFTER CONFIRMATION HE CAN AVAIL THAT RIGHT.....
From United Kingdom
From United Kingdom
DEAR RAHUL,
AS PER THE FACTORIES ACT THE EMPLOYEE IS ENTITLED TO GET THE BENIFIT OF THE PRIVILEAGE OR EARN LEAVE IF COMPLEATES 240 WORKING DAYS IN A YEAR THE.
THIS IS AS PER MY KNOWLDGE SENIOR CAN GUIDE ME ALSO.
RAHUL
From India
AS PER THE FACTORIES ACT THE EMPLOYEE IS ENTITLED TO GET THE BENIFIT OF THE PRIVILEAGE OR EARN LEAVE IF COMPLEATES 240 WORKING DAYS IN A YEAR THE.
THIS IS AS PER MY KNOWLDGE SENIOR CAN GUIDE ME ALSO.
RAHUL
From India
In our co we have 5-CL’s, 5-SL’s n 12-PL’s And an employee cannot evil his PL’s still he completes his probation period (6 Mon). Regards, Venkat
From India, Hyderabad
From India, Hyderabad
Hi.
If the person leaves the organization even in probation period than he will be entitle for getting the EL encashment because at the time of full and final we have to show and deposit the PF amount @12% on the EL encashment.
Yes the person can not avail the EL even in probation or in the present calender year. The total no of earned leave will be credit in the next calender month.
The elegibility is 240days while the person joins the organization on 01st January or in other case 2/3 days of work in the remaining calender year.
Regards
Abhishek
From India, Delhi
If the person leaves the organization even in probation period than he will be entitle for getting the EL encashment because at the time of full and final we have to show and deposit the PF amount @12% on the EL encashment.
Yes the person can not avail the EL even in probation or in the present calender year. The total no of earned leave will be credit in the next calender month.
The elegibility is 240days while the person joins the organization on 01st January or in other case 2/3 days of work in the remaining calender year.
Regards
Abhishek
From India, Delhi
hi rahul,
According to rule you are supposed to pay for earned leave during probation period but he/she should have completed notice period if not then deduct from notice period not served whatever is left out pay to the employee
From India, Ahmadabad
According to rule you are supposed to pay for earned leave during probation period but he/she should have completed notice period if not then deduct from notice period not served whatever is left out pay to the employee
From India, Ahmadabad
Hi Rahul,
A lot many people have stated that the leave entitlement is based on the organization’s leave policy / standing orders; the argument is that the leave policy will also derive it from some where, and as we know it is either the Shops & Establishment Act or the Factories Act. Which means that it is a statutory requirement, as also stated by Arif.
If you go through both the acts, the leave entitlement part of the Shops & Establishment Act, seems to have been derived from Factories Act so it does not make a difference whether you are governed by Factories Act or the Shops & Establishment act, as far as the basis of leave rules is concerned, except for certain things.
Section 79 (1) of the Factories read as under
Every worker who has worked for a period of 240 days or more in the factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for the number of days calculated at the rate of -
Adult - 1 day for every 20 days of work performed by him during the previous calendar year
Child - 1 day for every 15 days of work performed by him during the previous calendar year
This actually means that during the first 240 days (typically the probation period) the law says no EL or PL (you may use any nomenclature as far as the definition satisfies annual leave with wages).
However, law always prescribes for a minimum benefit so if the organization decides to credit EL or PL on successful completion of the probation (on confirmation) the action is justified at the same time the reverse will be unlawful.
Further, Section 79 (3) of the Act states
If a worker is discharged or dismissed from services or quits his employment or is superannuated or dies while in service during the course of the calendar year, s/he or heir or nominee, as the case may be, shall be entitled to wages in lieu thereof .......
This is why encashment of the EL or PL is statutory; again the law does not stop from encashing CL or SL. In the case put up by you, since the person is under probation, which means he is yet to earn the EL or PL, there will be no encashment as per the act.
Normally in order to adjust the shortfall of the Notice Period we adjust unavailed PL or EL which is unlawful. Please refer Section 79 (12) of the Act which reads as
The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.
In this case logically one should encash the EL or PL and recover the notice period, e.g.
EL - 20 days Shortfall of notice 15 days instead of encashing 5 days of EL encash 20 ELs and recover for 15 days shortfall, now this is lawful.
Hope this will be of some help.
Best wishes,
Sunil Joshi
PGCHRM - XLRI
From United States, Bedford
A lot many people have stated that the leave entitlement is based on the organization’s leave policy / standing orders; the argument is that the leave policy will also derive it from some where, and as we know it is either the Shops & Establishment Act or the Factories Act. Which means that it is a statutory requirement, as also stated by Arif.
If you go through both the acts, the leave entitlement part of the Shops & Establishment Act, seems to have been derived from Factories Act so it does not make a difference whether you are governed by Factories Act or the Shops & Establishment act, as far as the basis of leave rules is concerned, except for certain things.
Section 79 (1) of the Factories read as under
Every worker who has worked for a period of 240 days or more in the factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for the number of days calculated at the rate of -
Adult - 1 day for every 20 days of work performed by him during the previous calendar year
Child - 1 day for every 15 days of work performed by him during the previous calendar year
This actually means that during the first 240 days (typically the probation period) the law says no EL or PL (you may use any nomenclature as far as the definition satisfies annual leave with wages).
However, law always prescribes for a minimum benefit so if the organization decides to credit EL or PL on successful completion of the probation (on confirmation) the action is justified at the same time the reverse will be unlawful.
Further, Section 79 (3) of the Act states
If a worker is discharged or dismissed from services or quits his employment or is superannuated or dies while in service during the course of the calendar year, s/he or heir or nominee, as the case may be, shall be entitled to wages in lieu thereof .......
This is why encashment of the EL or PL is statutory; again the law does not stop from encashing CL or SL. In the case put up by you, since the person is under probation, which means he is yet to earn the EL or PL, there will be no encashment as per the act.
Normally in order to adjust the shortfall of the Notice Period we adjust unavailed PL or EL which is unlawful. Please refer Section 79 (12) of the Act which reads as
The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.
In this case logically one should encash the EL or PL and recover the notice period, e.g.
EL - 20 days Shortfall of notice 15 days instead of encashing 5 days of EL encash 20 ELs and recover for 15 days shortfall, now this is lawful.
Hope this will be of some help.
Best wishes,
Sunil Joshi
PGCHRM - XLRI
From United States, Bedford
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