Earned Leave is also known as Privilege Leave ( PL) or Vacation Leave (VL). This leave type is named Earned because employee ‘earns’ these leaves for days they worked. It is also known as Annual Leave ( AL) or Flexi Holiday.
As the name suggests, Earned Leaves are used for personal reasons such as festivals, vacations, etc. These leaves are usually paid. Providing EL is mandatory as per labor laws; however, the quantity of the EL varies from state to state. This leave entitlement is calculated as the number of days worked by the employee. The Days worked shall not include holidays & weekends.
This sort of leave needs to be planned ahead of time and informed to HR in advance. These leaves are carried forward to next year if they are not used by employees at the end of the year. Employee cans also encash their leave through a process called Leave Encashment after the end of the year. The basic salary is usually considered as the unit of exchange to encash earned leaves.
Also, See: Leave Policy
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