HR Glossary
Earned Leave
Paid leave accumulated by an employee based on time worked, which can usually be carried forward or encashed.
Definition
Earned leave (also called privilege leave) is leave that accrues over time as an employee works, and can typically be availed, carried forward to future years, or encashed subject to company policy.
Why It Matters
Leave encashment on exit is calculated based on the earned leave balance, making accurate tracking essential during full-and-final settlement.