We have a doubt which we need you to help us with. To tackle the issue of paid/earned leave, we have thought of deducting leave when taken but paying the leave salary at the end of every 3 months. Considering the person is entitled to 30 days leave, his leave and leave salary will be split 8+8+8+6 every quarter. The salary slip will be modified to show 8 leaves per quarter with 0 leave availed. So in this case, every leave taken during the year will be deducted in each salary, but we are paying leave salary every quarter. If we proceed as such, do you foresee a problem from any legal angle? Do we fulfill:
1) Leave entitlement
2) Leave Encashment
3) Monthly salary
From India, Mumbai
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1) Leave entitlement
2) Leave Encashment
3) Monthly salary
From India, Mumbai
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what you are going to adopt is a tedious process for HR Dept. we would suggest paying leave salary once in every calendar year which being practiced universally.
From India, New Delhi
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425From India, New Delhi
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The above proposal of deducting salary then and there for the leave availed in a month but paying it later at the end of the quarter seems to be against the welfare provision for annual leave with wages based on the ratified ILO convention.
Earned Leave is not just a monetary concept to raise the earnings of the employees. Its primary objectives are:
- to keep the employees away from the monotony of the work environment
- to allow the employee to have enjoyment of hassle-free leisure lasting for some longer stretch of duration without loss of earnings and discontinuity of service
- to provide the employees the opportunity of better work-life balance
- to increase their levels of productivity by providing them with rest, recreation, and remuneration through annual leave, etc.
Preference for encashment in lieu of leave by employees every month is a matter of practical and financial convenience. But, regularization of the period of absence as leave on loss of pay seems to me unethical and inappropriate even if not illegal.
From India, Salem
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Earned Leave is not just a monetary concept to raise the earnings of the employees. Its primary objectives are:
- to keep the employees away from the monotony of the work environment
- to allow the employee to have enjoyment of hassle-free leisure lasting for some longer stretch of duration without loss of earnings and discontinuity of service
- to provide the employees the opportunity of better work-life balance
- to increase their levels of productivity by providing them with rest, recreation, and remuneration through annual leave, etc.
Preference for encashment in lieu of leave by employees every month is a matter of practical and financial convenience. But, regularization of the period of absence as leave on loss of pay seems to me unethical and inappropriate even if not illegal.
From India, Salem
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Hello Sunilkarn,
Can you clarify the reason(s) why this model is being suggested at your company? Prima facie, it looks as though you are about to complicate the EL framework while trying to resolve some issues that you are facing.
Regards,
TS
From India, Hyderabad
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Can you clarify the reason(s) why this model is being suggested at your company? Prima facie, it looks as though you are about to complicate the EL framework while trying to resolve some issues that you are facing.
Regards,
TS
From India, Hyderabad
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Hi Sunil,
If you think that this will help the HR in the process, actually it's getting tedious. Calculating those things once a year is itself tedious; you are to ask them to do so four times a year. Apart from this, most companies follow calendar days for leaves so that they can complete the calculations and tasks before the March-end process to avoid clashes in financial endings.
Another thing to consider is that in this process, even the employees will get confused about what is happening. Is there a particular reason for this change being implemented? Is it driven by management to emphasize this change, or is it solely your opinion? Alternatively, is this change requested from the employees' side? How did this idea come about?
I hope this helps clarify the concerns raised. Let me know if you need further information or assistance.
From India, Mumbai
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If you think that this will help the HR in the process, actually it's getting tedious. Calculating those things once a year is itself tedious; you are to ask them to do so four times a year. Apart from this, most companies follow calendar days for leaves so that they can complete the calculations and tasks before the March-end process to avoid clashes in financial endings.
Another thing to consider is that in this process, even the employees will get confused about what is happening. Is there a particular reason for this change being implemented? Is it driven by management to emphasize this change, or is it solely your opinion? Alternatively, is this change requested from the employees' side? How did this idea come about?
I hope this helps clarify the concerns raised. Let me know if you need further information or assistance.
From India, Mumbai
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