Dear All, I need to have a clarification on the below-mentioned points to follow In our payroll system.
1. Do we need to credit their earned leave only after the completion of 240 working days or can we credit their EL after the completion of the calendar year as per the applicable Act?
2. Suppose If any employee joins in June or July, will they be eligible to avail the EL after the completion of the calendar year or need to complete 240 working days as per the Act?
3. Whenever the employee leaves the job in 4 to 5 months, will they be eligible to get their EL payment along with F&F settlement or will it be applicable only after the completion of 240 working days.
From India, Puttur
21. Do we need to credit their earned leave only after the completion of 240 working days or can we credit their EL after the completion of the calendar year as per the applicable Act?
2. Suppose If any employee joins in June or July, will they be eligible to avail the EL after the completion of the calendar year or need to complete 240 working days as per the Act?
3. Whenever the employee leaves the job in 4 to 5 months, will they be eligible to get their EL payment along with F&F settlement or will it be applicable only after the completion of 240 working days.
From India, Puttur
Hi Sajith,
Please note the answers to your queries :
1. No, completion of 240 days is not mandatory.
2. EL eligibility starts from the joining date itself, usually before 15th to 20th of the particular month.
3. Generally, EL encashment is applicable after the completion of 6 months.
From India, Noida
Please note the answers to your queries :
1. No, completion of 240 days is not mandatory.
2. EL eligibility starts from the joining date itself, usually before 15th to 20th of the particular month.
3. Generally, EL encashment is applicable after the completion of 6 months.
From India, Noida
@Sajithda,
Clarification to your number-wise queries are given below:
Q1:Do we need to credit their earned leave only after the completion of 240 working days or can we credit their EL after the completion of the calendar year as per the applicable Act ?
Ans: If any employee worked in the company for the whole year (after completiion of the calendar year), EL could be credited to the account of employee in January of the following year.
Q2: Suppose If any employee joins in June or July, will they be eligible to avail the EL after the completion of the calendar year or need to complete 240 working days as per the Act ?
Ans: Same formula applies (as per Answer to Q1). However, only pro-rated credit can be given to such employees.
Q3: Whenever the employee leaves the job in 4 to 5 months, will they be eligible to get their EL payment along with F&F settlement or will it be applicable only after the completion of 240 working days.
Ans: If an employee leaves the job in 4-5 months from the date of joining, they will not be eligible for any EL payment/encashment, because no EL applies to them.
From India, Aizawl
Clarification to your number-wise queries are given below:
Q1:Do we need to credit their earned leave only after the completion of 240 working days or can we credit their EL after the completion of the calendar year as per the applicable Act ?
Ans: If any employee worked in the company for the whole year (after completiion of the calendar year), EL could be credited to the account of employee in January of the following year.
Q2: Suppose If any employee joins in June or July, will they be eligible to avail the EL after the completion of the calendar year or need to complete 240 working days as per the Act ?
Ans: Same formula applies (as per Answer to Q1). However, only pro-rated credit can be given to such employees.
Q3: Whenever the employee leaves the job in 4 to 5 months, will they be eligible to get their EL payment along with F&F settlement or will it be applicable only after the completion of 240 working days.
Ans: If an employee leaves the job in 4-5 months from the date of joining, they will not be eligible for any EL payment/encashment, because no EL applies to them.
From India, Aizawl
Dear Sajith
If the applicable act is Karnataka S&E then below rule will be applicable for calculating EL
15. Annual leave with wages.—1
[(1) Every employee in an establishment shall be entitled to leave with wages and shall be allowed to avail such leave for the number of days calculated at the rate of,-
(i) one day for every twenty days work performed by him, in case of
an adult;
(ii)one day for every fifteen days of work performed by him, in case
of a young person;
From India, New Delhi
If the applicable act is Karnataka S&E then below rule will be applicable for calculating EL
15. Annual leave with wages.—1
[(1) Every employee in an establishment shall be entitled to leave with wages and shall be allowed to avail such leave for the number of days calculated at the rate of,-
(i) one day for every twenty days work performed by him, in case of
an adult;
(ii)one day for every fifteen days of work performed by him, in case
of a young person;
From India, New Delhi
(4) In calculating leave under this section, fraction of leave of half a day or more shall be treated as one full day’s leave, and fraction of less than half a day shall be omitted.
From India, New Delhi
From India, New Delhi
To me, the answers given by Mr.R.K.Nair seems to be absolutely correct. Ms.Swati may kindly quote the provisions of law on the basis of which she answered.
From India, Salem
From India, Salem
The answer as stated by seniors is correct, that it depends on the state in which you are operating and whether it is a factory or comes under shop and establishment act. The rules on when the leave is required to be credited and what is the minimum number of days to avail of the leaves is given in the concerned act / rules.
However, nothing stops the company from giving better terms of employment, so you also need to see what your HR Manual and Standing Orders are saying in this regards
From India, Mumbai
However, nothing stops the company from giving better terms of employment, so you also need to see what your HR Manual and Standing Orders are saying in this regards
From India, Mumbai
The leave calculation and leave of employee gets credit at the end of calendrer year. The eligibility is 240 days working (1st Jan to 31 Dec) those are in roll from the 1st day of calendrer month. And those joined after 1st Janury need to work (3/4) 75% of available man-days in the calendar year.
The employee needs to be settled with leave accrued @ 1 day per 20 working days or on prorate basis of the maximum EL fixed for an employee. Any employee leaves the job in 4 to 5 months is eligible to get their EL payment along with F&F settlement.
From India, Mumbai
The employee needs to be settled with leave accrued @ 1 day per 20 working days or on prorate basis of the maximum EL fixed for an employee. Any employee leaves the job in 4 to 5 months is eligible to get their EL payment along with F&F settlement.
From India, Mumbai
Usually leave is determined by two Acts - Factories Act Sec-78 and Shops and Establishment Act of the State. Nomenclature of leave under Factories Act is "Annual Leave " where as under S & E Act it is "Privilege Leave". ( WB S & E ACT ).
Under WB S & E Act there is no eligibility criteria to earn Privilege Leave. But under Factories Act there are conditions mentioned under Sec-78 for the eligibility of Annual Leave under different conditions.
In this post the question is regarding "Earned Leave" ( EL) and let us consider the employee is under Factories Act.
1.0 Leave earning is usually consider after completion of one calendar year. But there are Organizations in case of emergency need - provide EL in advance.
2.0 Employee joins other than 1st day of January say June or July of any year, shall be entitled for leave if he has worked for two-thirds of the total number of days in the remainder of the calendar year. ( Factories Act - Sec-78(2) ).
3.If any employee quits his employment during the course of the calendar year ( say working for 4 or 5 months in a year ), shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his quitting of employment and in this case pro-rata leave will be required to calculate as per point no. (2) above (Sec-78(3) of Factories Act )
S K Bandyopadhyay ( Howrah, WB)
CEO-USD HR Solutions
From India, New Delhi
Under WB S & E Act there is no eligibility criteria to earn Privilege Leave. But under Factories Act there are conditions mentioned under Sec-78 for the eligibility of Annual Leave under different conditions.
In this post the question is regarding "Earned Leave" ( EL) and let us consider the employee is under Factories Act.
1.0 Leave earning is usually consider after completion of one calendar year. But there are Organizations in case of emergency need - provide EL in advance.
2.0 Employee joins other than 1st day of January say June or July of any year, shall be entitled for leave if he has worked for two-thirds of the total number of days in the remainder of the calendar year. ( Factories Act - Sec-78(2) ).
3.If any employee quits his employment during the course of the calendar year ( say working for 4 or 5 months in a year ), shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his quitting of employment and in this case pro-rata leave will be required to calculate as per point no. (2) above (Sec-78(3) of Factories Act )
S K Bandyopadhyay ( Howrah, WB)
CEO-USD HR Solutions
From India, New Delhi
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