Dear Seniors,

I have recently joined a finance service-oriented company. I come from a manufacturing background and am unfamiliar with the Shops & Establishment Act. This company has establishments in various states, and I require information on the state-wise Shops & Establishment Acts, returns, registers, abstracts, renewal due dates, registration formalities, and any other relevant information. Additionally, I would like to understand the acts that are applicable under the Shops & Establishment Act.

Please assist me with this information. You can reach me at [email protected]

Thank you and regards,
S. Muthu

From India, Madras
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Dear Mukesh,

PL encashment is mandatory at the time of leaving service. If any employer is denying this, the employee may contact the labor commissioner's office of that province. It is always advisable to discuss this matter while negotiating salary during the interview.

Dilip Bhandari
9879577710

From India, Surat
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Dear Mukesh,

It is a statutory requirement for the employer to encash PL as per the Factory Act and Bombay Shops and Establishment Act. Now, your question about calculating the amount to be paid - whether it should be based on Basic/26, 30, or 31. In your organization, if you deduct 1 day's salary as LWP by dividing it by 26 to arrive at 1 day's salary, then you should encash PL by dividing BASIC + DA by 26 days.

I hope this clarifies matters.

Dilip Bhandari
HR Manager
Rajhans Group of Industries
9879577710

From India, Surat
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Still Not clear about the statutory obligation of employer fo EL Encashment is it mandatory for employer to encash the el/pl balace at the time of exit

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