Hi All Greetings, I need full details of EL Encashment in Factories Act 1948. Please Help - Urgent Regards Kanaka
From India, Madras
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12From India, Madras
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Dear Kanaka, Please refer to you State Rule along with the Act to get a complete picture. Regards, SC
From India, Thane
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From India, Thane
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Please guide us to cluclate leave encahsment under factories act-1948 Earlier we use to calulcate leave equal to one day salary because we don’t have any leave policy/procecure.
From India, Bangalore
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From India, Bangalore
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In gujarat we calculate leave on 20 days if employee works for 240 he gets 12 leave its calculated on calendar year and encashment is done in salary of dec
From India, Nasik
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From India, Nasik
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It is leave entitlement and not encashment. Encashment comes only at the time of separation of an employee's service.
Under the Factories Act, methods of calculating leave are different for employees already on the payroll on 1st Jan in the preceding year and for employees who join after 1st Jan in the preceding year.
In the case of the former, the employee will be eligible for 1 day of leave for every 20 days worked if they have completed 240 days in the preceding year. In the case of the latter, the employee will be eligible for 1 day of leave for every 20 days worked if they have worked for a minimum of 2/3 of the total days from his/her date of joining.
Of course, the rate of 1 day for 20 is statutory. You may give 1 day of leave for, say, 18 days.
From India, Mumbai
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Under the Factories Act, methods of calculating leave are different for employees already on the payroll on 1st Jan in the preceding year and for employees who join after 1st Jan in the preceding year.
In the case of the former, the employee will be eligible for 1 day of leave for every 20 days worked if they have completed 240 days in the preceding year. In the case of the latter, the employee will be eligible for 1 day of leave for every 20 days worked if they have worked for a minimum of 2/3 of the total days from his/her date of joining.
Of course, the rate of 1 day for 20 is statutory. You may give 1 day of leave for, say, 18 days.
From India, Mumbai
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Refer to www.simpliance.in to download acts, rules, minimum wages, and all recent amendments for free.
From India, Bengaluru
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From India, Bengaluru
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Factories Act 1948 Leave Rules.jpg
LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf