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Leave encashment

(Querist) 21 June 2014 This query is : Resolved 
1. If a Pvt ltd.company having turn over is Rs. 175 crore and covered under Delhi shops and establishment act don't give earn live how company is legally bounded for that.

2. In this case any employees can claim for the encasement.?.

Kumar Doab (Expert) 21 June 2014
What is this company: Govt, Private..........................and further: What is this establishment: Commercial, Industrial, Small Enterprise.................


The leave policy of the company can not be inferior to the enactments applicable to it...........

Hence complaint can be lodged with authority e.g;
Inspector under Shops and Commercial Establishments Act if it is establishment covered by this Act..........
Rajendra K Goyal (Expert) 21 June 2014
Send legal notice for payment of leave earned. If no response approach designated authority under the act.
R.K Nanda (Expert) 22 June 2014
agree with experts.
malipeddi jaggarao (Expert) 23 June 2014
Earned Leave entitlement and allowing this EL for encashment are different aspects. The Companies can have their own rules about encashment, but as far as entitlement of earned leave is concerned the company should follow the enactments.
Kumar Doab (Expert) 23 June 2014
The Shops and Commercial Establishments Act was enacted to regulate the terms of service and other conditions of work of persons employed inshops, commercial establishments, other establishments………………..

The number of various kinds of leave/annual leave, its encashment and rate of encashment is well defined in enactments applicable to the establishment including:

Delhi Shops and Commercial Establishments Act: Sec;22,23,

The establishment can frame its leave Policy …………………….as per negotiated settlement with employees…………………….however the provisions of the policy can not be inferior to the provisions of the enactments applicable to establishment including entitlement and encashment………………….


T. Kalaiselvan, Advocate (Expert) 25 June 2014
Well advised by experts, nothing more to add.
Raj Kumar Makkad (Expert) 26 June 2014
I do agree with the experts.


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