Articleship Leaves Allowed, Treatment of Excess Leaves: ICAI Norms

As per ICAI Norms – An article assistant is eligible for taking leave equivalent to 1/6th of the articleship period served by him.

We’ve highlighted the fact that it is computed on the basis of articleship training period served and not on the basis of the total period served.

The above point has been illustrated below:

  • Total No. of Days Served:- 365 X 3 = 1095
  • Leaves allowed – 1095/6 = 182.5 (This manner of computation is completely wrong as leaves allowed are 1/6th of the articleship period served and not of the total period)

The Manner of Computation of Articleship Leaves is as under

Articleship Articleship Leaves Allowed, Treatment of Excess Leaves: ICAI Norms

Let the no. of Leaves allowed and taken be x

Therefore, the Actual No. of Days worked = 1095-x (No treatment for Regular Holdiays like Weekends and Gazetted Holidays)

Now, Leaves Allowed = 1/6 of Actual No. of Days Worked

x = 1/6 (1095-x)

6x = 1095 – x

7x = 1095

x = 156

Therefore the total no of days of leaves allowed is 156 and not 182. In other words, leaves allowed is 1/6th of the period of actual service (excl leaves) or 1/7th of the period served (incl leaves).

A few examples have been shown below explaining the calculation of leaves in different scenarios:-

Case I

A. Total number of days served (365×3) = 1095

B. Less: Total leave taken (other than weekly holidays) = 188

C. Actual Period served = 907

D. Entitlement of leave (1/6th of the actual period served) = (907/6) = 151

EXCESS LEAVE: (B – D) = 37

Case II

A. Total number of days served = 700

B. Less: Total leave taken (other than weekly holidays) = 140

C. Actual Period served = 560

D. Entitlement of leave (1/6th of the actual period served) = (560/6) = 93

EXCESS LEAVE: (B-D) 47

Case III

A. Total number of days served (365 × 3) = 1095

B. Less: Total leave taken (other than weekly holidays) = 137

C. Actual Period served = 958

D. Entitlement of leave (1/6th of the actual period served) = (958/6) = 160

EXCESS LEAVE: (B-D) NIL

Notes

  1. The days on which a trainee appears for the examination conducted by the Institute (including holidays) are counted as a period on duty.
  2. ICAI has clarified that attendance by an articled assistant with the consent of the principal, at a conference, course or seminar organized by the Institute including a regional council or a students’ association or a branch of a regional council for the benefit of clerks, shall be treated as period actually served under articleship and should not be counted as a leave.

Extension of Articleship | Excess Articleship Leaves

In case an article assistant has taken leaves in excess of the maximum leaves allowed by ICAI, he would be required to serve additional period of articleship so as to compensate the excess leaves taken. For this purpose, a supplementary deed of articles in Form No.” 107″ should be executed in triplicate with the same employer in continuation of the previous training on a non-judicial stamp paper or “special adhesive stamp” of the requisite value should be affixed on the form.

The supplementary deed in duplicate along with Form 108 or Form 119 as the case may be for the period already served should be sent so as to reach the Office of the Institute within 60 days of the expiry of the normal term of articles.

In such a case, a fresh agreement in Form “102″ should be entered into and the particulars in Form “103″ along with Form No. 108 or Form 119 as the case may be for the period already served should be sent to the office of the Institute for registration within 30 days of the commencement of training.

A member may be granted an additional vacancy to engage an articled assistant whose normal term of training is over and he (the articled assistant) is found to have taken excess leave which is to be made up by an additional period of articles. It is the duty of the employer in such a case to ensure that the articled assistant completes the period of training under him including the period of excess leave. The benefit of an additional vacancy in such case is given only where it could not have been reasonably anticipated that the articled assistant would have to serve an extra period on account of the excess leave taken. Such additional vacancy may be given to the previous employer or to any other chartered accountant entitled to train articled assistant (s).

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