Privilege leave (PL) is paid leave that an employer grants to employees in recognition of their work and commitment to the company.
It is also referred to as an Earned Leave (EL).
PLs are not usually for emergencies; they are for reasons such as vacations, family commitments, or rest and rejuvenation. Unlike casual or sick leave, PL usually requires prior approval and must be availed in accordance with the organisation’s leave policy. Some key considerations for Privilege Leave include:
- Depending on company policies, PL is generally earned over time and carried forward if unused.
- Employers may cap the accumulation of PL to a certain number of days.
- In many organisations, unused PL can be encashed during the employee’s tenure or at the time of exit.
- Proper documentation and prior application are often required to utilise PL effectively.
FAQ
Privilege Leave is planned and requires prior approval, whereas Casual Leave is often used for short-term, unplanned absences and may not always need advance notice.
Policies on carrying forward or encashing Privilege Leave vary between organisations. Some allow carry-forward or encashment, while others enforce "use-it-or-lose-it" policies.
Most organisations compensate employees for unused Privilege Leave as part of the final settlement, provided the leave encashment policy supports it.
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