Earned Leaves Are Carried Forward To Next Year Or Optional In A Indian Base Company?
As the very name suggest, Earned Leave or Privilege Leave is a leave or a privilege accruing to an employee on the basis of the number of days worked by him in a year to be availed of in the succeeding year.
It can be carried forward to the succeeding years to a certain limit and beyond which it would lapse. It depends upon the intelligent use or option of the concerned employee.
However, since whatever remains in the credit of the employee’s leave a/c, it becomes encashable as a terminal benefit on his normal termination of employment like retirement, resignation etc., most of the managements follow the policy of annual leave surrender for cash benefit and employees also welcome it though there is no such provision in any law applicable to establishments of any type.