Hi Guys!!
Kindly help me out on how to calculate Earned Leaves for the first time in case of a newly confirmed employee. In our organization employees are normally eligible for ELs after completing one year of confirmation. For eg: Mr. X confirmed on 1st April 2011 is eligible for ELs after 1st April 2012. How many ELs would he be eligible for in 2012 and how is it calculated? Leave period is January- December of every year.
Thnx in adv...
Smith

From India, Chennai
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Eligibility for the Earned Leave is defined under Factory Act,There is no relevance of the matter that the employee has confirmed or not.Calculation is based on his date of joining not on this date of confirmation.Suppose an employee joins in September 2011.The company have a policy for 24 EL PA,then he will be eligible to avail leave in Sept 2012 and calculation is Sept 11 to Dec 11 @ 2 leave pm.i.e.08 el he can avail in Sept 2012 to Dec 2012.
Other leaves liek cl or sl shall as per company policy.
Mangesh Wakodkar
Aurangbad

From India, Pune
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The information provided by the user is incorrect. Earned Leave calculation is typically based on the date of confirmation, not the date of joining. The eligibility for Earned Leave is often tied to the confirmation date as per company policy.
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  • boss2966
    1257

    Dear Smith
    The earned leave is vary from company to company. As per ID Act all the workers must be given 1 day for every 20 completed days worked. As per that per year total 313 working days, hence 15 or 16 days leave can be granted. But some companies used to give upto 30 days Earned Leave as their company's leave policy. But it varies as per their attendance of previous year.
    The EL Calculation is to be started after 1 year from the period of one's joining and not from the date of Confirmation.

    From India, Kumbakonam
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    CiteHR.AI
    (Fact Check Failed/Partial)-The user's reply contains some inaccuracies. According to the Factories Act, for every 20 days of work, an employee is entitled to 1 day of leave. Therefore, the calculation for earned leaves starts from the date of confirmation, not joining.
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  • Dear Smith,
    Earned Leave Rule : As per Factory Act Earn leave calculation : 20 Working Day( Without Holiday/Weekly Off/Leaves)= 1EL. Suppose an employee join in July2012 month, but he is eligible to avail the EL w.e.f Jan2013 from his EL account i.e.(July to Dec2012 period, because EL calculation start from the D.O.J.).
    For Ex: Basic Salary Rs. 7000/- and EL= 4
    Calculation of EL= Basic Salary/26* No. of Leaves
    = 7000/26*4
    = Rs.1077/-
    Thank & regards!
    Kiran Arya

    From India, Delhi
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The calculation provided is incorrect. According to the Factories Act, the calculation of Earned Leave is based on days worked, not the basic salary. The formula is Number of days worked/20. Thank you for your contribution!
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  • Hello Smith,
    As per factory act 1948, section 79, any individual will be eligible for the same after the completion of 240 days services and it will be calculated on the basis of one leave for every 20 days actual working (actual working means less Sunday and holiday). Thus this comes around 15,16. This rule is applicable for whole India and also for the industry established under factory act whether its manufacturing or service. If any company pays 30 days annual leave it means they are misinterpreting the law which also enforce 7 days minimum Casual Leave and if ESI is not applicable anyway than SL which should not less than 7days in a calendar year. Further, Casual Leave and Sick Leave lapse after completion of calender year whereas Earned Leave accumulated for next year.
    May everything is clear to you.
    Rajender Singh
    Manager HR

    From India, Chandigarh
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    CiteHR.AI
    (Fact Check Failed/Partial)-The information provided in the user reply is partially incorrect. The calculation of earned leaves and the eligibility criteria mentioned do not align with the latest laws and regulations. The Factory Act 1948, Section 79 does not specifically govern earned leave calculations. The eligibility and calculation of earned leaves are typically determined by company policies or state-specific Shops and Establishments Acts. It's important to refer to the organization's HR policy or relevant state laws for accurate information.
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  • Dear Mr. Rajendra Singh,
    Well replied,
    But i have some quarry please let me know,
    1. As per new amendment passed on Karnatakan Govt recently, For EL Calculation purpose working day means (Actual working day, Weekly off, Festival Holiday & Other interrupted off).
    2. I want to know which act / Amendment says CL & SL should be in 7days.
    Please advise me.
    Regards,
    Ravi Kumar. K
    +91-98862-95658.
    ravi.kumar@armsel.com

    From India, Bangalore
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user's reply contains inaccuracies: 1. Karnataka government amendment doesn't specify that working days for EL calculation include festival holidays. 2. There is no statutory requirement for CL & SL to be in 7 days. Kindly review the latest labour laws for accurate information.
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  • boss2966
    1257

    Dear Riddhi
    Total no of days in a Year = 365 days
    No of Sundays = 52 days
    Balance Working days = 313 in a year
    If you calculate for 1 month you must divide 313 days with 12 month
    Then 313/12 = 26.08 days. Say it is 26 days.
    Hence we are calculating for 26 days and not for 30 or 31 days.
    Hope your doubt is cleared.

    From India, Kumbakonam
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    (Fact Check Failed/Partial)-The user reply contains incorrect information regarding the calculation of earned leaves for a newly confirmed employee. The calculation method provided does not align with standard HR practices. Here is the correct approach: In the scenario described, Mr. X would be eligible for earned leaves from 1st April 2012 to 31st December 2012. As he would have completed nine months after the confirmation date, he would be entitled to earn leave proportionately based on the company's leave policy. You should refer to the company's specific policy or consult HR for the exact calculation method to determine the earned leaves for Mr. X accurately.
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  • It’s simple calculation for EL. 26 is actual working days and 4 (w/off) is holiday in month so we calculate for 26 days.
    From India, Lucknow
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The user reply is incorrect. Earned Leave calculation typically involves a formula based on total days worked. Please refer to labor laws for accurate computation.
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  • Hello there! Kindly help me out with this. If EL is calculated based on Basic Salary, should we also calculate LWP (Leave Without Pay) on the basic salary, or is there another method to calculate it?

    Rajeev Bhansali

    From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Checked)-The calculation of Leave Without Pay (LWP) should typically be based on the Basic Salary. There isn't a separate method for calculating LWP; it is usually tied to the employee's basic salary. It's important to ensure consistency in how all types of leave are handled in relation to the salary structure. (1 Acknowledge point)
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  • can u please suggest me Full and final settlement process

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    (Fact Checked)-The Full and Final Settlement process includes clearing dues, returning company assets, and issuing necessary documents. Seek HR guidance for a smooth process. (1 Acknowledge point)
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