Last Updated on 10 months by Anoob P T
When I first started my career working as a content writer, I was always confused about casual leaves and earned leaves.
I did not quite understand what is the difference between casual leave and earned leave, rules of casual leaves and earned leaves, which leave should I first apply and use.
In this post we will look at all the major differences between casual leave and earned leave and also few sample leave letters for your reference.
Feel free to check those posts if it interests you.
Table of Contents
What is Casual Leave?
Casual Leave or CL is conceded to employees if they can’t respond to work because of an unexpected circumstance.
Casual leave can be issued if the employee has a valid reason.
It is not for holiday purposes because they are getting paid for such leaves.
Organizations are severe with regards to Casual leave and permit a limit of three days of casual leave in one month.
Further, the worker should look for earlier authorization before taking this kind of leave.
However, many employees do take these casual leaves for planned vacations because number of leaves in India are comparatively low and employees try to use as many leaves are possible.
What are the Rules for Casual Leaves?
- Casual leaves can be gained from half a day to a limit of three days. After three days, leaves taken are called earned leave or privileged leaves. If the worker wishes to benefit the three leaves simultaneously, at that point they have to look for authorization from the organization.
- On the off chance that the business is enrolled under the Shops and Establishment act, at that point the representative is able to get casual leave of six days.
- Casual leaves can’t be conveyed forward to the following year. As per the casual leave rules, after the year closes, the leaves which are unused lapse consequently.
- The unused leaves can’t be encashed like earned leaves. They basically terminate when the year closes.
- Casual leaves can’t be clubbed with earned leaves or sick leaves because the employee gets paid for these leaves.
- For new workers or for somebody who has recently left his job, the casual leaves are designated proportionately. For example, if a worker joins the organization on July 1, this implies the midyear, the number of casual leaves accessible will be a large portion of the real sum and will be relevant till December 31.
What is Earned leave?
Privilege leaves or Earned leaves are the paid leaves that get added to the leave basket of an employee.
Earned leaves can be tracked via online platforms and are given to employees for traveling or vacation purposes.
These leaves are earned by the workers from 240 days of service in a given schedule year.
Different companies have different policies regarding how earned leaves are credited to employee’s leave basket, so do check with your HR to know about earned leaves policy in your company.
What are the rules of Earned leaves?
The Earned leaves are calculated monthly basis.
This implies the earned leaves get credited to the representative’s leave account toward the beginning of the schedule year, yet the quantity of leaves the worker is qualified for additionally relies upon the number of months they worked.
For example, as indicated by the business’ leave strategy, as soon as the month ends the 1.25 leave days get added to the worker’s leave account.
In the event that a worker joins the organization at the mid of the schedule year, at that point the entitled earned leaves will be determined on a pro-rata basis, from the joining date to December 31 of the equivalent year.
On the off chance that a worker leaves the organization, then the entitled leaves are determined on the basis of the rata premise until the last working day.
Also, if the worker has taken any additional leaves, this will get balanced in the last settlement sum.
If the worker can’t use all the entitled earned leaves in a single schedule year, at that point the unused earned leaves will get conveyed forward to the following year.
In any case, there is a cutoff to the number of leaves that can be conveyed forward to the following year.
Maximum leaves that can be aggregated are 30 days. In any case, as indicated by The Shops and Establishment Act, it can go up by 45 to 60 days, contingent upon the approach of the states.
The aggregated or unused leaves get consequently encashed in the event that they surpass the cutoff or when the worker leaves the company. The encashment method relies upon the organization’s leave strategy in India.
The equation to figure encashable earned leaves is:
| Sum encashed = month gross salary * accumulated encashable leaves/22 |
The encashment of leaves while in administration is completely taxable according to the law. Any leave encashment installment got by state and central government workers during retirement is 100% exempted from any Tax. In every single other case, the exception sum is restricted.
Difference between privilege leave and earned leave:
Many of us sometimes get confused between privilege leave and Casual leaves. These are some of the differences between the two:
- According to the Factories Act, the leave entitlement of the workers is named as earned leaves or EL, while, under the Shops and Establishments Act, the entitled leaves are named as privilege leaves or PL.
- Under the Factories Act, a solitary earned leave is allowed for each 20 working days, for example, 18 leaves for each year. Under the Shops and Establishment Act, five benefit leaves are conceded for four months of work, for example, 15 leaves for every year.
Other Types of Leaves in India:
- Sick Leave or Medical Leave: Taken by the employees if they are sick or have some medical issues.
- Maternity Leave: Taken by the mother employee at the time of pregnancy.
- Quarantine Leave: Taken by the employee if he is affected by any transmission disease or virus.
- Study Leave or Sabbatical Leave: If the employee wants to learn any new skill and he needs time then he can opt for this leave.
- Holiday leave: Taken for vacation purposes.
- Bereavement Leave: Leave taken in case of death of a loved one.
Sample Casual leave application
Subject: Application for Casual Leave
Dear Mr./Mrs. {Recipient’s Name},
I am writing to you to let you know that I have an important personal matter to attend due to which I will not be able to be at work from {start date} to {end date}.
I have discussed and delegated my tasks to my colleague {person’s name} & have instructed them how to reach me in case any help is required during my absence.
Please accept my leave application and approve the same so that I can go ahead with planning my travel and other related necessities.
Yours Sincerely,
{Employee name}
Sample Earned leave application
Subject: Application for 15 days Earned Leave (EL)
Dear Sir/Madam,
I am writing this email to request for an earned leave. I would like to avail my earned leaves for 10 days because I need to attend a wedding–destination of which is outside the country and I will need at least couple of weeks’ to travel and be back in office.
This is the first time I am taking my earned leaves since the start of my employment here and I have delegated my tasks to {person’s name} & have instructed them to call me for any help during my absence.
If there is an emergency you can email me on my personal email ID at any time.
I request you to kindly approve my earned leave for 10 days at the earliest.
Yours sincerely,
{Your Full Name}
Sample Sick leave application
Subject: Sick leave application
Dear Mr./Mrs. {Recipient’s Name},
This is to inform you that I need a few more days of leave from work because of a severe viral infection. I caught the infection last week and since then have been unwell and feeling generally weak.
My doctors have advised me that I need to take medication for five days, along with proper rest during the course of the medication. The letter from the doctor is attached, confirming the need for time to recover from the illness.
Kindly allow me a week-long leave, until the {date}. Should I require an extended period off, I will let you know as early as possible.
Please feel free to contact me at your convenience, should you have any questions or require clarification concerning the ongoing project. Thank you for your quick attention to this matter.
Sincerely,
{Employee Name}
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