The leave policy in India states that every employee across all sectors is qualified to get a certain benefits of leaves every year. It is the responsibility of the employer to grant the specified quantity of leaves to their employees as per earned leave rules and casual leave rules.
The type of leaves and number of leaves granted to each employee depends on the state, the every state has a different leave policy and leave rules under Shops and Establishments act and Factories Act,
There are some different types of leave benefits granted in india
- Casual Leave (CL)
- Earned Leave (EL)
- Sick Leave (SL)
Casual Leave (CL)
Casual Leave is also called as Paid leave but it is not earned, these leaves are granted for uncertain situation or if an eligible employee wants to take leave for couple of days for personal reasons. Companies are strict when it comes to casual Leave (CL)rules and allow maximum of three days in one month. The employees should seek prior permission before availing Casual Leave.
Some other casual leave rules:-
- Maximum 12 days of casual leave can be availed by an employee in a year.
- Casual leave is paid leave and it is not consider as absent.
- Casual leave can be taken for minimum half day and maximum 3 days in one month.
- Casual leave cannot be carried forward to next year.
- Casual Leave cannot be merge with earned leave or any other type of leave.
- CL should be applied one day or week in advance when its applied for more than 2 days.
Earned Leave (EL)
Earned Leaves are the leaves earned by the employee for proving more than 240 days of service to the employer in a given calendar year. These leaves can be used for planned vacation or Travel
The employers should make proper leave management system to track and maintain the records of used and unused leaves of an employee.
Some of common rules associated with earned leaves:-
- The calculation of earned leaves is done monthly for the entire calendar year.
- The earned leave get added to the employees leave account at the start of calendar year
- The number of leaves the employee is entitled to also depends on the number of months they worked.
- If an employee joins the company at the middle of the calendar year, then the entitled earned leaves will be calculated on a pro-rata basis until the last working day
- If the employee has taken any extra leaves, this will get adjusted in the final settlement amount.
- If an employee is unable to utilize all the entitled earned leaves in one calendar year, then those unused leaves will get carried forward to the next year.
- The maximum leaves that can be accumulated are 30 days. However it depends on the company policy or policy of the states.
- The unused leaves get automatically encashed if the exceed the limit or when the employee leaves the organization. The encashment procedure depends on the company leave policy in India
The formula to calculate encashable earned leaves is:-
Amount Encashed = Monthly Cross Salary X Unused Encashable Leave / 22
Sick/ Medical Leave (SL)
Employers offer their employees sick/ Medical Leave when they are ill. Some organizations/ Company ask for a medical certificate to sick/medical leave approve when sick.
- Sick Leave can be taken for minimum 0.5 to maximum 7 days
- There are no sick leave carry forwards.
- At the end of calendar year any available sick leave will lapse automatically.
- For all absence exceeding 2 or 3 days, depending on company policy. Compulsory medical certificate needs to be enclosed.
- Sick leave can be appended with Earned Leave.
- For new joiner & resigned employees one gets pro rated sick leave.
The information shared above about the Casual, Earned, and Sick leaves should give you a clear idea about the types of leaves that employer can provide to their employees.
