Leave Types (EL, CL, SL)
Indian companies typically structure employee leave into three core categories. Earned Leave (EL), also called Privilege Leave (PL), accrues based on days worked and can usually be carried forward or encashed. Casual Leave (CL) covers short, unplanned personal needs and generally cannot be carried forward. Sick Leave (SL) is granted for health-related absence, sometimes requiring a medical certificate for longer durations.
Entitlements vary by state Shops & Establishments Act and company policy, but a common structure is 12-15 days each of EL, CL, and SL annually. EL is the only leave type that regularly carries statutory encashment value both during service and at full & final settlement.
Key points
- ✓ EL (Earned/Privilege Leave) accrues with service and is often encashable
- ✓ CL (Casual Leave) is for short personal needs, usually non-carry-forward
- ✓ SL (Sick Leave) covers health-related absence, may need a medical certificate
- ✓ State Shops & Establishments Acts prescribe minimum leave entitlements
- ✓ Unused EL beyond company cap can usually be encashed annually or at exit
Example
An employee entitled to 15 EL, 12 CL, and 10 SL annually who uses only 5 EL, 8 CL, and 4 SL by year-end retains 10 unused EL, which can typically be carried forward or encashed depending on company policy, while unused CL and SL usually lapse.
Frequently asked questions
Can casual leave be carried forward to the next year?
Is a medical certificate mandatory for sick leave?
How many earned leaves can be encashed?
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