Hi Every, We are trying to do a study to make some changes in the current policies of our company.
Can anyone share your thoughts on how EL's get credited for an employee? Will it be at the beginning of the month or the end of the month?
For an employee who joins either mid or end of the month, how does the EL credit happens?
An employee who leaves the company will he be eligible to get EL for the last month?
From India, Hyderabad
Can anyone share your thoughts on how EL's get credited for an employee? Will it be at the beginning of the month or the end of the month?
For an employee who joins either mid or end of the month, how does the EL credit happens?
An employee who leaves the company will he be eligible to get EL for the last month?
From India, Hyderabad
Legally an employee will get eligibility to EL only when he completes a minimum required service in the company. It shall not be more than 12 months but the company can have lesser period for crediting the EL. Some companies credit it once the employee completes probation period. But it shall have effect from the date of joining. Usually all leaves will be credited in the month of January considering the attendance in the preceding year. In the case of employees who have joined during the preceding year, the EL will be proportionate to the period of service.
Monthly crediting of EL is not a common practice. If it will add values to the employees, you can do it. If so, the credit should be made on the first day of the month. Any employee joining till 15th of the month will be given full credit considering one month service and those joining after 15th will not be given any credit for the month. This can be followed.
From India, Kannur
4248Monthly crediting of EL is not a common practice. If it will add values to the employees, you can do it. If so, the credit should be made on the first day of the month. Any employee joining till 15th of the month will be given full credit considering one month service and those joining after 15th will not be given any credit for the month. This can be followed.
From India, Kannur
Basically EL is to be computed on number of working days an employee put in. Normally it will be credited in subsequent year in the month of January on pro rata basis. You may follow the Factories rules or your company policy if you have one.
Normally this mid of month or end of month does not arise, unless you have any set of guidelines or policy in this regard.
From India, Hyderabad
Normally this mid of month or end of month does not arise, unless you have any set of guidelines or policy in this regard.
From India, Hyderabad
Is your Company a Factory or Shop or Establishment?
For Factory Section 79 of Factories Act explains how Annual Leave with Wages is to be computed. For Factory It is January to December Please read the Act with your State Rules. I will give one example to begin with, rest please read and learn. It is in your own interest. A worker/employee joins the Factory on 1/12 that is First day of December. On 1/1 that is First January he will be entitled to Annual Leave with Wages (EL) if in the previous year he had worked for two third of calendar days. In this example, calendar days are 31 For entitlement he must have physically worked for 20 days and if he had worked so he will get one day EL credit.
From India, Chennai
For Factory Section 79 of Factories Act explains how Annual Leave with Wages is to be computed. For Factory It is January to December Please read the Act with your State Rules. I will give one example to begin with, rest please read and learn. It is in your own interest. A worker/employee joins the Factory on 1/12 that is First day of December. On 1/1 that is First January he will be entitled to Annual Leave with Wages (EL) if in the previous year he had worked for two third of calendar days. In this example, calendar days are 31 For entitlement he must have physically worked for 20 days and if he had worked so he will get one day EL credit.
From India, Chennai
you can divided the EL in 04 quarter. for example for 20 EL in a year you may give him 05 EL in each quarter subject to his working days.
From India, Rudarpur
From India, Rudarpur
As per my understanding, law is silent on the monthly or quarterly counting of working days for the purpose to calculate the EL. As per law, the EL shall be 01 day for each 20 worked days for an individual. Now a days most of the companies are having software for time office and salary purposes. In software’s itself provisions are made to calculate the EL as per law.
While relating the question, if an individual join in mid of the month and continues his services, his total worked days will be considered to credit his EL in the month of succeeding January.
To avail the leave, an individual shall have served for 240 days, but if an individual resigned or otherwise even before completion of 240 days, he shall be paid for the leave he earned as per legal provisions. There is no prohibition mentioned in FA for EL authorisation to a probationer because he is an employee even during probation period.
Still please read the provisions of law and consult your legal expert before taking any decision on the above subject.
Ratan Bhardwaj
VOPL Prithla
M# 8708893427
From India, Noida
While relating the question, if an individual join in mid of the month and continues his services, his total worked days will be considered to credit his EL in the month of succeeding January.
To avail the leave, an individual shall have served for 240 days, but if an individual resigned or otherwise even before completion of 240 days, he shall be paid for the leave he earned as per legal provisions. There is no prohibition mentioned in FA for EL authorisation to a probationer because he is an employee even during probation period.
Still please read the provisions of law and consult your legal expert before taking any decision on the above subject.
Ratan Bhardwaj
VOPL Prithla
M# 8708893427
From India, Noida
I refer to the response no.6. As I mentioned in one of my earliest posts, the new Labour Codes have reduced the eligibility requirement for leaves from 240 days of work to 180 days of work in a year. However, the quantum of leave earned will remain unchanged, that is, 1 day of leave earned for every 20 days of work. Similarly, no change has been proposed in the limit on carry forward of leaves which remain at 30 days
From India, Aizawl
From India, Aizawl
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