Earned Leave & Privilege Leave


What are the major differences between privilege leave and earned leave, can I club both into one in my company?

Please advise.



Hi Swati-

Some research says, As per Factories Act, the leave entitlement of the employees is termed as earned leaves or EL, whereas, under the Shops and Establishments Act, the entitled leaves are termed as privilege leaves or PL.

Under the Factories Act, a single earned leave is granted for every 20 working days, i.e. 18 leaves per year. Under the Shops and Establishment Act, five privilege leaves are granted for four months of work, i.e. 15 leaves per year.

If the total leaves compensate and fulfil the norms with minimum leaves to be given, then no need for two separate leaves else you may have to split into Casual leave and Earned leave just to avoid last minute leaves.


Hi @Swati

Both remains to be the same :slight_smile:

Based on the need a company choose - Generally leaves are named in two modes (immediate / non-immediate)

Immediate are some leaves that employees can use it with a short notice (like: Sick / Casual etc.,) which might not exceed 2 to 3 days.

But some leaves are non-immediate where in employee needs to apply leave in prior for a longer duration.

So it’s purely based on the org . needs- but do not forget to adhere to the minimum leaves to be given rules.

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