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
1Earned 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
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
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