Earn leave vs Casual leave

on

General Framework:

Privilege Leave (PL)/Earned Leave (EL):

  • Usually eligible for encashment
  • Can typically be encashed both during service (if allowed by employer) and at the time of retirement/resignation
  • Most common practice: unused PL accumulated over the years can be encashed

Casual Leave (CL):

  • Generally NOT eligible for encashment in most organizations
  • CL is typically meant for short, unforeseen absences and is expected to be used during the year
  • Usually lapses if not taken within the calendar/financial year

However, there are exceptions:

  1. Government sector: In many government departments (especially in India), CL is generally not encashable, while PL/EL is encashable subject to certain conditions

  2. Private sector: Depends entirely on company policy - some organizations may allow CL encashment, though it's rare

  3. State-specific rules: Labor laws vary by state/country

For during-service leave encashment, here's the typical framework:

Privilege Leave (PL)/Earned Leave (EL)

Generally Eligible for encashment during service, but with conditions:

  • Maximum limit: Usually can encash only after accumulating a minimum balance (e.g., 30 days must remain in credit after encashment)
  • Frequency: Often restricted to once per calendar year or once in a block of years (e.g., every 2-3 years)
  • Maximum encashable: Typically 10-30 days per encashment depending on policy
  • Common practice: Organizations allow this to prevent excessive leave accumulation

Casual Leave (CL)

Generally NOT eligible for encashment during service because:

  • CL is intended for immediate, short-term use
  • Designed to lapse at year-end (use-it-or-lose-it)
  • Employers expect employees to take CL within the year for work-life balance
  • Very few organizations allow CL encashment during service


Comments

Post a Comment