Privilege Leave In Detail: Rules, Benefits, Sample Application

Understand every important detail about privilege leave and learn how to draft a leave application for it.

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Privilege Leave In Detail: Rules, Benefits, Sample Application

Who doesn't like taking a long leave from work and getting paid for it? Thanks to our labour laws, privilege leave entitles us to take off days without any salary deduction. Also referred to as 'earned leaves', these are leaves that you have literally 'earned' in lieu of the work you have done for the company. Let's understand more about privilege leave and see how you can avail it.

What is Privilege or Earned Leave: Definition, Rules & Benefits

Privilege leaves are paid leaves that are annually credited to employees in recognition of their service to a company. The purpose of a privilege leave is to provide employees with a break from work and to ensure their well-being. These leaves are also called 'earned leaves.'

Privilege Leave(PL) and Earned Leave (EL) are meant for similar purposes. So why use two different terms? This is because in India, as per the 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.

Another specialty of this type of leave is that it is encashable and can be accumulated. This means that earned leaves, if not availed, can be converted to cash or carried forward to the subsequent year. However, the number of days that can be encashed or accumulated depends on the company policy.

Generally, employees get about 18 to 24 privilege leaves per annum that can be availed for personal reasons, spending time with family, maintaining a healthy work-life balance, etc.

Understand the difference between casual leaves and earned leaves

Rules regarding Privilege Leave in India

In India, there are some guidelines given by the Ministry of Labor and Employment with regard to privilege or earned leaves. These are:

Eligibility	Employee becomes eligible for privilege leave only after completing a specified period of continuous service or probationary period in the company or organization.
Accumulation	The maximum number of days of privilege leave accumulated by an employee is limited. (Generally, it is 30 days or two months.)
Availment	Unlike casual leave, a notice needs to be given days in advance to the employer before availing of the privilege leave.
Encashment	As per rules, employers have to provide for the encashment of earned leaves. However, the number of days that can be encashed is limited.
Carry Forward	Depending on the company policy, earned leaves can be carried forward to the subsequent year.
Minimum Leave	Companies must provide a minimum of 15 days of privilege leave per year to their employees.

Benefits of Privilege Leave

Benefits of privilege leave

Following are some benefits of privilege leaves:

Reduced stress: Off days from work help to unwind and focus one's attention on tasks apart from work. This helps to reduce stress levels and promote mental health.
Increased job satisfaction: The well-being of employees must be one of the prime objectives of a company. If employees are happy and satisfied, they will deliver better results. Hence, offering privilege leave can be a way for employers to show their appreciation for their employees and promote a positive work environment.
Improved work-life balance: Earned leaves can allow employees to cater to their personal commitments. It can help promote a healthy work-life balance, leading to greater productivity.

How to write an earned leave application?

The format of an earned leave application is the same as any other leave application format. The following leave application sample will give you an overview:

[Your Name] [Your Employee ID] [Your Department]

[Date]

[Manager's Name] [Manager's Designation] [Company Name] [Company Address]

Subject: Annual Privilege Leave Application

Dear [Manager's Name],

I hope this message finds you well. I am writing to formally request my annual privilege leave as per the company's policy.

I would like to avail x days of privilege leave from (start date) to (end date). During this time, I will ensure that my responsibilities are handled in my absence, and I will coordinate with my team for the same.

I have attached the completed leave request form and other necessary supporting documents for your reference. If there are any additional requirements or procedures I need to follow, please let me know.

I understand the importance of maintaining the workflow, and if any urgent matter arises during my absence, I can be reached via email at (email address).

I appreciate your consideration of my request. Thank you for your support.

Sincerely,

Your Full Name

Your Contact Number

The above sample leave application can be customized to suit your specific situation and company policies.

FAQs Related To Privilege Or Earned Leave

1. How do I earn privilege or earned leave?

The accumulation of privilege or earned leave typically depends on your employer's policy. It is often earned based on the number of days or hours worked. The longer you work for the company, the more leave you accrue.

2. Can I use privilege or earned leave for any purpose?

In most cases, you can use privilege or earned leave for various purposes, including vacation, personal time, illness, or family emergencies. However, it's important to check your company's policy to understand the specific purposes for which you can use this leave.

3. Can I carry forward unused privilege or earned leave to the next year?

Whether you can carry forward unused privilege or earned leave depends on your employer's policy. Some companies allow carryover of a certain number of days, while others may require you to use it within the same year.

4. How do I apply for privilege or earned leave?

To apply for privilege or earned leave, you typically need to follow your company's specific leave request process. This often involves submitting a formal leave application to your supervisor or HR department, either in writing or electronically.

5. How much notice should I give when applying for privilege or earned leave?

It is advisable to provide your employer with as much advance notice as possible when requesting privilege or earned leave. This allows them to plan for your absence and arrange for coverage if necessary. Check your company's policy for any specific notice requirements.

6. What happens if my privilege or earned leave is denied?

Employers generally have the right to approve or deny leave requests, but they cannot do so for discriminatory reasons. If your leave request is denied, you should have a discussion with your supervisor or HR department to understand the reason for the denial. Depending on the circumstances, you may be able to negotiate an alternative time for your leave or address any concerns raised by your employer.

7. Is compensation received after privilege leave encashment taxable in India?

Yes, taxation rules apply to leave encashment received during employment. However, different exemptions exist for government and non-government employees at the time of retirement or resignation. One needs to stay updated on tax laws and seek professional advice when needed.

We hope the above article was helpful. For more such articles, stay tuned to Unstop!

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Edited by

Shreeya Thakur

Sr. Associate Content Writer at Unstop

I am a biotechnologist-turned-content writer and try to add an element of science in my writings wherever possible. Apart from writing, I like to cook, read and travel.