Dear Seniors, Can we put CL’s & EL’s in CTC. Kindly suggest
From India, Hyderabad
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From India, Hyderabad
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Dear Ganesh EL is mandatory as Factories Act, CL flows from Standing Orders, paid leaves are employees right, you cant calculate cost of it. Shailesh Parikh 99 98 97 10 65 Vadodara
From India, Mumbai
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312From India, Mumbai
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My views: No case for the inclusion of CL or EL in CTC arises for the following reasons.
1. The concept of CTC is not present in employment laws. It is only an industry concept. It is not common industry practice to include CL or EL in CTC.
2. In the case of CL, as per the leave policy of many companies, the leave will lapse to the company at the end of the calendar year if unavailed by the employee, in which case there will be no cost to the company. This makes it difficult to have a definite CTC figure as it may vary throughout the year depending on the extent to which it is availed.
3. In the case of EL, as the name suggests, the leave is earned by an employee for working for a certain number of days. What is earned by the employee cannot qualify as the cost to the company. If the employee does not work for those days, they do not earn the leave.
4. Even if an employee is on EL for a certain period, they are treated as being on duty as they are paid wages for that period. According to the definition of 'wage' under various labor laws, especially under the Factories Act or Shops Act, it is considered as remuneration paid by the employer for the work done by an employee. If the employee does not work, they do not earn wages. Therefore, it is in the nature of a 'quid pro quo' from the employer for the work done and thus does not qualify as a cost to the company.
Other views are welcome on this interesting issue.
B. Saikumar
HR & Labour Relations Adviser
From India, Mumbai
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1. The concept of CTC is not present in employment laws. It is only an industry concept. It is not common industry practice to include CL or EL in CTC.
2. In the case of CL, as per the leave policy of many companies, the leave will lapse to the company at the end of the calendar year if unavailed by the employee, in which case there will be no cost to the company. This makes it difficult to have a definite CTC figure as it may vary throughout the year depending on the extent to which it is availed.
3. In the case of EL, as the name suggests, the leave is earned by an employee for working for a certain number of days. What is earned by the employee cannot qualify as the cost to the company. If the employee does not work for those days, they do not earn the leave.
4. Even if an employee is on EL for a certain period, they are treated as being on duty as they are paid wages for that period. According to the definition of 'wage' under various labor laws, especially under the Factories Act or Shops Act, it is considered as remuneration paid by the employer for the work done by an employee. If the employee does not work, they do not earn wages. Therefore, it is in the nature of a 'quid pro quo' from the employer for the work done and thus does not qualify as a cost to the company.
Other views are welcome on this interesting issue.
B. Saikumar
HR & Labour Relations Adviser
From India, Mumbai
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Karnataka Leave.xlsx
LEAVE APPLICATION.doc