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Rama mohan Acharya (Manager HR(Legal))     26 July 2014

Leave encashment

We had executed a contract with a contractor in the Month of May. The condition of the contarct is that the contractor is to comply all applicable law. The contrcat labour submitted that they are not paid the leave encashment amount at the closure of the contract. The contractor takes the stand that Leave encashment provision is not applicable to the workers as they had not worked for 240 days in a calender year. The contract was for one year.
The leave encashment amount was taken into account while awarding the work to the contractor. Since the contractor is not able to produce the prrof of payment along with his bill, Finance department is not releasing the Bill. Guidance is sought on : whether calculation of 240 day is also applicable in this case OR it can be calculated for the whole contract period of one year which is spread over in two calender years?
Is there any supreme court jugement guiding this type of situation is available? 


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