Greetings to the Seniors & Friends
My query is about the allotment of PL/EL to the employees who have completed their one year in June, 2021.
Company policy to allot 21 EL after completion of one year.
As one of the employee joined in June 2020 and has completed one year, as per my knowledge he is eligible for 12 EL for the current year.
As per leave calendar 21 leave will be credited in January 2022.
Respected seniors kindly give your opinion which would be very valuable to
Regards
From India, Vijayawada
3My query is about the allotment of PL/EL to the employees who have completed their one year in June, 2021.
Company policy to allot 21 EL after completion of one year.
As one of the employee joined in June 2020 and has completed one year, as per my knowledge he is eligible for 12 EL for the current year.
As per leave calendar 21 leave will be credited in January 2022.
Respected seniors kindly give your opinion which would be very valuable to
Regards
From India, Vijayawada
Dear friend,
There is no mention about the type of your establishment if a factory or an establishment coming under the State Shops & Estt Act.
Anyway, conceptually PL and EL are similar in terms of nature, accruel, availment, provision for carry over to future subject to certain ceiling and encashment on the termination of employment. But in scale they are different.
The 12 days EL in 2021 you mentioned is the leave earned in 2020-21 and the 21 days EL after completion of one year by the employee is as per your Company policy.
Always the scale of leave prescribed by any law is a minimum standard only. Therefore, an employer is free to adopt a higher scale.
From India, Salem
There is no mention about the type of your establishment if a factory or an establishment coming under the State Shops & Estt Act.
Anyway, conceptually PL and EL are similar in terms of nature, accruel, availment, provision for carry over to future subject to certain ceiling and encashment on the termination of employment. But in scale they are different.
The 12 days EL in 2021 you mentioned is the leave earned in 2020-21 and the 21 days EL after completion of one year by the employee is as per your Company policy.
Always the scale of leave prescribed by any law is a minimum standard only. Therefore, an employer is free to adopt a higher scale.
From India, Salem
There is some amount of confusion on the Annual Leave (=Earned leave or Privilege Leave) provision in the Factories Act 1948. It is clarified that it is not necessary to work for 240 days in a calendar year before starting to get Annual Leave. The Act provides that for a worker whose service commences otherwise than on the first day of January shall be entitled to leave with wages at the rate of one day for every twenty days worked if he has worked for two-thirds of the total number of days in the remainder of the calendar year. In the subsequent years of service, since the employee is in service on 1st January, completion of 240 days of actual working is necessary to earn the leave @ 1:20.
So coming to your question, presuming you to be a factory as per the Factories Act 1948, you need to verify whether the employee has actually worked for two-third of total number of days in the reminder of the calender year (from June to December 2020) and that number of leaves could be credited to the employee's leave account at the start of the year 2021. In January 2022, the employee would get credited leave quantum on the basis of 1:20 for the number of days worked, provided the days of actual working are 240 or more in the calendar year 2021. For the purpose of computing 240 days any days of lay off, by agreement or contract or as permissible under the standing orders; in the case of a female worker, maternity leave for any number of days not exceeding twelve weeks; and the leave earned in the year prior to that in which the leave is enjoyed, shall be deemed to be days on which the worker has worked in a factory, but he shall not earn leave for these days.
From India, Mumbai
So coming to your question, presuming you to be a factory as per the Factories Act 1948, you need to verify whether the employee has actually worked for two-third of total number of days in the reminder of the calender year (from June to December 2020) and that number of leaves could be credited to the employee's leave account at the start of the year 2021. In January 2022, the employee would get credited leave quantum on the basis of 1:20 for the number of days worked, provided the days of actual working are 240 or more in the calendar year 2021. For the purpose of computing 240 days any days of lay off, by agreement or contract or as permissible under the standing orders; in the case of a female worker, maternity leave for any number of days not exceeding twelve weeks; and the leave earned in the year prior to that in which the leave is enjoyed, shall be deemed to be days on which the worker has worked in a factory, but he shall not earn leave for these days.
From India, Mumbai
Dear Umakanth Sir,
We come under Shops & Establishment act
As per the reply, I got to understand that if an employee joins in June, 2020 and completes his one year in June 2021, as per policy his eligibility for EL is 21 days for this year. Is that right...sorry a big confusion.
From India, Vijayawada
We come under Shops & Establishment act
As per the reply, I got to understand that if an employee joins in June, 2020 and completes his one year in June 2021, as per policy his eligibility for EL is 21 days for this year. Is that right...sorry a big confusion.
From India, Vijayawada
Dear K K Sir
Thank you for your reply, but finding it difficult to understand how much leave to be allotted
As per company policy 21 leaves after completion of one year
Employee joined in June 2020 and this month completed one year
As leaves are allotted as per calendar year (Jan - Dec), is he eligible for complete 21 days or on prorata basis i.e. from June - Dec 10 EL to be credited.
From India, Vijayawada
Thank you for your reply, but finding it difficult to understand how much leave to be allotted
As per company policy 21 leaves after completion of one year
Employee joined in June 2020 and this month completed one year
As leaves are allotted as per calendar year (Jan - Dec), is he eligible for complete 21 days or on prorata basis i.e. from June - Dec 10 EL to be credited.
From India, Vijayawada
Dear Seniors, I am really sorry for the inconvenience but need to understand hence requesting for understanding reply
From India, Vijayawada
From India, Vijayawada
Presuming that AP Shop & Establishment Act 1988 applies, the relevant provision is extracted below. The statutory requirement is to provide 15 days leave after completion of at least two hundred and forty days in a period of 12 months.
You are providing 21 days is a rightful welfare measure. Accordingly, in June 2021 credit the 21 days in the leave account of the employee, again at the start of next calendar year (January 2022) add proportionate leave for the period from June to December 2021
30. Leave. - (1) Every employee who has served for a period of two hundred and forty days or more during a continuous period of twelve months in any establishment shall be entitled during the subsequent period of twelve months, to leave with wages for a period of fifteen days, provided that such leave with wages may be accumulated upto a maximum period of sixty days:
From India, Mumbai
You are providing 21 days is a rightful welfare measure. Accordingly, in June 2021 credit the 21 days in the leave account of the employee, again at the start of next calendar year (January 2022) add proportionate leave for the period from June to December 2021
30. Leave. - (1) Every employee who has served for a period of two hundred and forty days or more during a continuous period of twelve months in any establishment shall be entitled during the subsequent period of twelve months, to leave with wages for a period of fifteen days, provided that such leave with wages may be accumulated upto a maximum period of sixty days:
From India, Mumbai
Credit 21 days leave on June,2021 after completion of one year and then proportionate leave as on Jan,2022 for the period July to Dec,2021 .
Quantum and different type of leave should be either as per Factories Act or S &E Act or if there is certified Standing Orders as per that. Co's leave policy cannot be less than statutory guide lines.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
www.usdhrs.in
From India, New Delhi
Quantum and different type of leave should be either as per Factories Act or S &E Act or if there is certified Standing Orders as per that. Co's leave policy cannot be less than statutory guide lines.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
www.usdhrs.in
From India, New Delhi
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