Hi,
One of our employees worked 41 days in 2023 (Jan-Dec) and 200 days in 2024 (Jan-July). As per Karnataka Shops and Establishment law, if employee complete 240 days, he is eligible for Earned leave (1 leave for every 20 days completed). Here, the employee left on 241st day and in between he was on Loss of Pay for 17 days. Should we credit Earned Leave till last day or the calculation is based on completion of year. Kindly let me know.
Based on the Karnataka Shops and Establishment law, the employee is eligible for Earned Leave (EL) after completing 240 days of service. In this case, the employee has completed:
Total days worked = 241 days
Since the employee has completed 240 days, they are eligible for EL. However, you also mentioned that the employee was on Loss of Pay (LOP) for 17 days. According to the law, LOP periods are typically excluded from the calculation of EL.
To calculate the eligible EL, you should subtract the LOP days from the total days worked:
241 (total days) - 17 (LOP days) = 224 eligible days
Since the employee has completed 224 eligible days, they are entitled to:
224 days / 20 days per leave = 11.2 Earned Leaves
As the employee left on the 241st day, you should credit the Earned Leave till the last day of service. The calculation is not based on the completion of the year, but rather on the number of eligible days worked.