Paid leaves
Querist :
Anonymous
(Querist) 20 March 2020
This query is : Resolved
I work in a proprietorship firm, In our offer letter it was mentioned to give 21 paid leave, In whole year I did not take leave but our firm is denying to pay for such leave in cash or carry forward in next year.
HR team drop email mentioning take your leave 02 in a month or max 4 days leave in a month, no can one take leave more than 04 days. If any employee did not take leave then neither it will carry forward next year nor will pay in cash.
Is there any provision in law to encash my leave or save these leave to laps ??
Raj Kumar Makkad
(Expert) 20 March 2020
Such type job is personal in nature hence it depends upon the terms of the employment. If no provision for the payment is made therein, you cannot claim as a matter of right.
Akshay
(Expert) 20 March 2020
Hi
Thank you for your question
As you have paid leaves and you have not taken the leaves in the eyes of law there is no provision ,as if you want them in cash check your offer letter if terms and condition mentioned about it then you can make a claim, otherwise NO.
Hope this will help you
Best regards,
Akshay Gupta
T. Kalaiselvan, Advocate
(Expert) 21 March 2020
A company should give minimum 18 leaves per year per employee apart from public holidays, which is generally 12 per year(optional, could be more).
Every salaried person as per labour law is entitled to a minimum number of paid leave every year. However, it is not necessary that an individual employee utilises all the leave he is entitled for a year.
This compels the employer to compensate the unutilised paid leave of the employees.
T. Kalaiselvan, Advocate
(Expert) 21 March 2020
Leave encashment refers to an amount of money received in exchange for a period of leave not availed by an employee. Encashment of accumulated leave can be availed by an employee at the time of retirement, during the continuation of service or at the time of leaving the job.
T. Kalaiselvan, Advocate
(Expert) 21 March 2020
Under Factory Act there is no mention of leave encashment while in service even with consent of Management. An employee can take leave encashment while quitting services, superannuation, discharge, dismissal or death. Leave encashment should be as per average daily wage of employee. There are some companies which pay leave encashment on basic and DA, which is not correct.
Leaves can be broadly divided based on its applicability to establishments covered under the Factories Act and the Shops and Establishments Act. Leave is calculated for the calendar year January to December.
You can demand the the denial by HR in writing and can initiate legal action against the company for this as per law.
First confirm if the leave rules by the company has such contents denying the privileges o its employees and then you can contact a lawyer practicing service law to initiate proper legal action in this regard as per prevailing law.
Rajendra K Goyal
(Expert) 21 March 2020
Leave depends on the appointment letter.
As per your appointment letter whether paid leaves are the leaves, when not taken encashment would be made or otherwise.
If your appointment letter is not clear on the issue, take a copy of the Company leave rules and proceed.
Raj Kumar Makkad
(Expert) 22 March 2020
It should be taken care of that whether the Company Act/Rules are applicable for the employee of a sole proprietorship firm which is the present case. Whether such employee gets protection under the Company Law or personal terms of appointment?
Raj Kumar Makkad
(Expert) 22 March 2020
I endorse the views of expert Rajender Kumar Goyal that the issue relates with the terms of the contract executed between the employer and employee and Company Act/Rules and mandatory compliance of Leave Rules under that specific enactment is not available to the author.
Rajendra K Goyal
(Expert) 23 March 2020
Since no appointment / termination letter not available with the employee, employer is proprietorship, it seems the firm has hardly shown him in regular onrole.
Is there any proof that he was in regular pay role. has firm any service conditions fixed for staff?
Raj Kumar Makkad
(Expert) 23 March 2020
In small proprietorship firms, it seems hard to have service rules for the staff.
Rajendra K Goyal
(Expert) 25 March 2020
Agree, small proprietorship firms hardly follow all labor law / rules / requirements or maintain record as multinationals or Ltd. Companies maintain and follow.
