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Bhavin (Mktg & Sales)     11 July 2013

Leave encashment

Hi Friends,

I work for a Pvt Ltd company and the moment I asked my company HR for leave encashment this is the reply i got whch I feel is in appropriate.

Please find below reply and if anyone can enlighten me on the same will be great.

Your leave balance as on 10.07.2013 is as follows -:

TOTAL EARNED LEAVES BALANCE AS ON 10.07.2013

36.5

SICK LEAVES

7

CASUAL LEAVES

3

 As per the policy an employee can en-cash earned leaves in either of the following cases -:

 If the employee has resigned from the company or  If the accumulated Earned leaves are at least 100 or more

Therefore, presently you cannot avail leave encashment.

On questioning the 100 accumulated leave rule they have answered me it is so because it is as per the labors act.

Can anyone please help me understnd this better as I dont find it a convincing answer.

Regards,

Bhavin 

 

 



Learning

 3 Replies

Pardeep (HR)     12 July 2013

Hi Bhavin,

As per the factory act  if any employee does not take any leave during his service in the particular employer he can only deposited 30 EL . more than 30 EL leave the employer is leglly bound to encashment the rest leaves.....( only for EL)

the employer is not bound to encashment the SL, CL which are pending .these such type of leaves lapes autometically when the calender year end.

so the employee  use is CL, SL during the calander year.

Bhavin (Mktg & Sales)     12 July 2013

hi,

Thanks for your reply howver sinrce we are not a factory can you please guide me on the rules pertaining to PVT Cos.

Regards,

Bhavin

Kumar Doab (FIN)     12 July 2013

You have clarified that your establishment is not a Factory.

--------If it is a Small Enterprise then leave policy should be as per

The Small Enterprises( Employment Relations) Act 2002:

Under chapter IV - conditions of work , clause no 11 point 4: 

A worker shall be permitted to accumulate leave upto 45 days in addition to the leave entitlement of the current year earned on the basis of the work done by him in the previous year and he shall be entitled to encashment of entire accumulted earned leave including leave earned during the current year pro rata in case his services are terminated or he quits the service

 

------If the establishment is registered under Shops and establishments of the state then;

(Name of the state) Shops and Establishments Act provides for provisions of leave for the employees. This Act is framed by each State on its own and therefore may be different in its provisions in each state.

You may refer to the Act as applicable in your state. It should be available on the Dept. of Labor website of your state.

 

------If Industrial Employment Standing Orders Act is applicable the leave policy shall be guided by the Standing Orders applicable to the establishment.

-----The leave policy can also be as per the bilateral agreement between the workers and the employer.

The leave policy may differ from organization to organization offering better/superior/negotiated benefits…………………..

 

The policy should not be inferior to the provisions of the enactments applicable to the establishment. 


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