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kumar ramasamy (clerk)     11 October 2013

Earn leave

Dear Sir/madam

 

Please advise is there any labour law for encashing the earn leave on yearly basis, my company says that the EL will be lapsed if it is not utilised and encashment is not possible

 

regards

 

Kumar Ramasamy



Learning

 6 Replies

Manpreet (Manager)     11 October 2013

@QUERIST

Try to get the HR manual/HR policy of the company.

There  it will be written.Verbal communication donesnot mean.

Certain company have rule that if you have EL more than 60 then you can encash at any time.Say if you have 70 EL now,then you will be able to encash

10 EL now. Remaining will be paid at the time of full and final settlement as per company policy (Normally basic salary is paid for EL)

Kumar Doab (FIN)     11 October 2013

 

Mr. Manpreet is right.

 

 

Put up your query in writing to concerned HR personnel.

Depending upon what is this establishment: Commercial, Industrial, The Small Enterprise you may go thru:

-------Shops and Commercial Establishments Act of the state

--------Factory Act: Sec79

-------- The Small Enterprises (Employment Relations) Act 2002: Chapter IV: conditions of work 

The leave policy of the company should be in line with the enactments applicable to it and can offer better and superior benefits as per its Certified Standing Orders, negotiated bilateral agreements, appointment letter……………..

 

Download the leave policy and relate.

kumar ramasamy (clerk)     12 October 2013

Dear Sir,

 

The leave policy mentioned in the HR policy is given below, is it correct

"

3No Encashment of Leave is permitted.  Alternatively Factory Manager/Incharge to plan the balance Earned leave for all employees onrotational basis, such that the regular work is not affected.  Sick Leave/casual leave shall not be allowed to be carried forward.

 

 

Pending EL may be carried forward for 2 years. Anything more than two years will get lapsed, if not taken.  At the time leaving, EL can be encashed subject to a max. of 21 days. "

rk

Kumar Doab (FIN)     12 October 2013

You have not stated the establishment is Shops and Commercial Establishment or a Factory or a Small Enterprise…………….

From your latest post it is guessed that it is a Factory. If it is a factory there might be Works Committee too (ID Act Sec3) or Workers representatives that has negotiated the leave policy……………….and they can elaborate the details to you. You may also go thru Sec79………….

If leave  is permitted to be carried forward for 2 years but encashment is not permitted while in employment, the leave may be availed, and leave application be submitted well in time under proper acknowledgment say 15 days in advance or as explained in leave policy.

The burden of wages to employer is same. If employer permits leave encashment then employer is benefited as there is no effect on continuity of work…………

At the time of separation quantum of leave balance should be encashed @ daily wages as in the preceding month.

 

 

 Valuable advise of learned experts/members is sought.

kumar ramasamy (clerk)     15 October 2013

Dear sir,  This Manufacturing unit

Kumar Doab (FIN)     15 October 2013

As already posted “The leave policy of the company should be in line with the enactments applicable to it and can offer better and superior benefits as per its Certified Standing Orders, negotiated bilateral agreements, appointment letter……………..”

 

By now you must have gone thru Factory Act: Sec79

1*[CHAPTER VIII

ANNUAL LEAVE WITH WAGES

78. Application of Chapter. (1) The provisions of this Chapter shall not operate to the prejudice of any right to which a worker may be entitled under any other law or under the terms of any award, 1*[agreement (including settlement)] or contract of service: 2*[Provided that if such award, agreement (including settlement) or contract of service provides for a longer annual leave with wages than provided in this Chapter, the quantum of leave, which the worker shall be entitled to, shall be in accordance with such award, agreement or contract of service, but in relation to matters not provided for in such award, agreement or contract of service or matters which are provided for less favourably therein, the provisions of sections 79 to 82, so far as may be, shall apply.]

 

79. Annual leave with wages. (1) Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of--

(i) if an adult, one day for every twenty days of work performed by him during the previous calendar year;

(2) 1*[(3) If a worker is discharged or dismissed from service or quits his employment or is superannuated or dies while in service, during the course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his discharge, dismissal, quitting of employment, superannuation or death calculated at the rates specified in sub-section (1)

 

(5) If a worker does not in any one calendar year take the whole of the leave allowed to him under sub-section (1) or sub-section (2), as the case may be, any leave not taken by him shall be added to the leave to be allowed to him in the succeeding calendar year:

Provided that the total number of days of leave that may be carried forward to a succeeding year shall not exceed thirty in the case of an adult or forty in the case of a child:

 

 


Attached File : 576951038 factories act 1948.pdf downloaded: 84 times

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