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All-in-one HR platform · v2.0
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All-in-one HR platform · v2.0
14-day free trial · No credit cardhello@HrMagix.com
EL, also called privilege leave
Paid leave that builds up with days worked, usually available for planned absence and usually the type that can be carried forward and encashed. The Factories Act and state Shops and Establishments Acts set minimum entitlements, which vary by state and type of establishment.
Not casual leave. Earned leave accumulates and is normally planned in advance; casual leave is short, unplanned and usually lapses at year-end.
Payroll and HR handle earned leave in three places: the monthly accrual, applications through the year, and the year-end process where balances are carried forward up to the policy cap and any excess is encashed or lapses. The year-end step is the one that most often needs manual checking.
For example, a policy might credit 1.5 days a month, giving 18 days a year, with a carry-forward cap of 45 days. An employee with 40 days in hand and 18 accrued ends at 58; 13 days are encashed or lapse, depending on the policy. Encashment at exit is usually calculated on basic, or basic plus DA, per day.
The common mistake is crediting leave during long unpaid absences when the policy says accrual depends on days worked. State Shops and Establishments rules set minimums that vary, so check the policy against the applicable state law.
For factory workers, section 79 provides one day of leave for every 20 days worked in the previous calendar year, for workers who have worked 240 days or more. Other establishments follow their state's Shops and Establishments rules, which vary.
Yes, the terms are used interchangeably, along with annual leave. All describe paid leave earned by service.
Usually yes, either during service under the company policy or at exit as part of the final settlement.
Most policies exclude weekly offs and public holidays from leave counts if they fall within the leave period, though some sandwich rules count them. The policy should state which applies.
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