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Formula of EL Calculation, If company is giving two week off? - CiteHR

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papari_devi
Dear All, Please advice me the formula of EL Calculation, If company is giving two week off. Regards, P. Devi
From India, Delhi
umakanthan53
5967

Dear Devi,
What is your Company - a shop or an establishment, a factory, a catering establishment, an oil-company having off-shore activities? What is that " two week off" given by the Company? Unless these vital informations are provided, no one can answer you.

From India, Salem
Pk biswal
Dear Umakanthan sir Pls clear EL calculation ,Total working days means included (EL,CL,or any leave enjoyed) or only physical present at job site. Pls Reply.
From India, Bhubaneswar
umakanthan53
5967

Dear Biswal,
To get your doubt cleared, you can go through Sec.79 of the Factories Act,1948 which is considered to be the mother of all establishment-specific Indian Labor Laws. What we call Earned Leave is called as "Annual Leave with Wages" under the above Act. Further, in the case of shops and establishments in our country for which there are separate State Acts in vogue, the Cabinet-approved Model Shops and Establishments
( Regulation of Employment and Conditions of Service ) Bill,2016 which is likely to be adopted by all the States sooner or later, Sec.11(3) provides for Leave With Wages @ one day for every 20 days of work performed by the employees who have worked for not less than 240 days in the previous year.
As per the statutory explanations provided thereunder, days of work includes lay-off, maternity leave, the days of leave with wages availed in the current year, days of absence necessitated by temporary disablement due to employment accident. However, though these days are deemed to be the days worked for the purpose of computation of 240 days service, employee will not earn any leave on these days.
In so far as weekly and other statutory holidays and other kinds of leave availed concerned, my view is that such days should be taken into account for the calculation of EL pertaining to the year.

From India, Salem
Pk biswal
Dear sir That means for calculation of EL we also taken CL, PL or any leave enjoyed with physical present. If he /she enjoyed c/off or NH, it also include calculations of EL? Pls clear
From India, Bhubaneswar
umakanthan53
5967

Dear Biswal,
Suppose in a calendar year, a particular employee was not laid-off and did not avail any maternity leave or EL , the entire 365 days of the year including the weekly and other holidays, days of CL and/or SL availed by him should be taken into account for the purpose of calculation of his EL earned in that year. Then the EL earned by him would be 365/20 = 18.25 or 18 days.
In case that employee was on Maternity leave for 182 days, her no. of days present becomes only 183 and fall below threshold of 240 days; but if the ML is added to the 183 days, she notionally crosses the threshold and becomes eligible for computation purpose. Yet, she will not actually earn any EL on the 182 days of ML hence her EL earned during the calendar year would be 183/20 = 9.15 or 9 days only.
In another case, the employee goes on 20 days EL earned in the previous years, the no of days present becomes 345 days and in that situation, the EL earned by him would be 345/20=17.25 or 17 days only.
It is to be noted that in both the cases the days of absence availed by way of weekly off, national and festival holidays, CL have been taken into account for both the purpose of computation of 240 days of service as well as calculation of leave earned.
Hope I have cleared your doubts.

From India, Salem
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