You are right. If an employee does not serve the organization for 240 days, he will not be eligible for earned leave (EL). However, if he joins the organization in the middle of the calendar year and works for 2/3 of the period, he will be eligible for EL (as per Section 79 (ii) of the Factories Act 1948).
All answers are okay as I understand.
Regards,
Satish
From India, Baleshwar
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3All answers are okay as I understand.
Regards,
Satish
From India, Baleshwar
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Hi Sushma,
This rule has been revised. As per labor laws, we have to give one Earned Leave (EL) for every 20 working days.
Regards,
Jitender
You are right; if an employee does not serve the organization for 240 days, they will not be eligible for EL.
Sushma
From India, New Delhi
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This rule has been revised. As per labor laws, we have to give one Earned Leave (EL) for every 20 working days.
Regards,
Jitender
You are right; if an employee does not serve the organization for 240 days, they will not be eligible for EL.
Sushma
From India, New Delhi
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Dear V. Arunkumar and friends,
Even though he joined in the middle of the calendar year, we have to give encashment for his eligible PL.
The Factories Act, 1948 Section 79 Explanation II (3) says:
"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 rate specified in sub-section (1), even if he had not worked for the entire period specified in sub-section (1) or sub-section (2) making him eligible to avail of such leave, and such payment shall be made: ..."
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He has not served the notice period. Do I have the right to deduct one month's salary from leave or bonus payment?
Further, we are not allowed to deduct the notice period amount from the PL encashment.
The Factories Act Section 79 (12) states that the unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.
Regards,
Alphonse 😂 😂 😂
GTE
From India, Madras
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Even though he joined in the middle of the calendar year, we have to give encashment for his eligible PL.
The Factories Act, 1948 Section 79 Explanation II (3) says:
"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 rate specified in sub-section (1), even if he had not worked for the entire period specified in sub-section (1) or sub-section (2) making him eligible to avail of such leave, and such payment shall be made: ..."
-----------------------------------------------------------
He has not served the notice period. Do I have the right to deduct one month's salary from leave or bonus payment?
Further, we are not allowed to deduct the notice period amount from the PL encashment.
The Factories Act Section 79 (12) states that the unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.
Regards,
Alphonse 😂 😂 😂
GTE
From India, Madras
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Hi Sushma,
Is it compulsory to complete 240 days for PL entitlement? Is there any specific reason? In our company, PL is applicable on completion of one year of continuous service, and it can be credited on the date of confirmation.
Regards,
Mrinal
From India, Mumbai
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Is it compulsory to complete 240 days for PL entitlement? Is there any specific reason? In our company, PL is applicable on completion of one year of continuous service, and it can be credited on the date of confirmation.
Regards,
Mrinal
From India, Mumbai
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Hi Prasanth,
1) Irrespective of employee status, whether confirmed or under probation, employees should be given full and final settlement as and when he/she resigns.
2) & 3) As per the Bonus Act, if his basic is greater than 3500/-, we need not pay bonus. However, if you have mentioned anything about bonus in his appointment letter, you have to abide by that stipulation, whether it is 8.33% or any specified amount, with a condition that he should work more than 30 working days.
4) If your appointment letter clearly states the notice period and the remedy in case of a breach of contract, you have every right to deduct the short notice amount. This amount will be calculated based on the terms agreed upon in the appointment letter.
Please let me know if you have a better solution in this regard.
Cheers,
KK
From India, Mumbai
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1) Irrespective of employee status, whether confirmed or under probation, employees should be given full and final settlement as and when he/she resigns.
2) & 3) As per the Bonus Act, if his basic is greater than 3500/-, we need not pay bonus. However, if you have mentioned anything about bonus in his appointment letter, you have to abide by that stipulation, whether it is 8.33% or any specified amount, with a condition that he should work more than 30 working days.
4) If your appointment letter clearly states the notice period and the remedy in case of a breach of contract, you have every right to deduct the short notice amount. This amount will be calculated based on the terms agreed upon in the appointment letter.
Please let me know if you have a better solution in this regard.
Cheers,
KK
From India, Mumbai
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Hi Sushma,
The PL calculation is as follows: for every completed 17 days, one PL should be credited. However, for our convenience, we will credit the PLs at the end of the FY, after completing 12 months.
Please correct me if I am wrong.
From India, Mumbai
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The PL calculation is as follows: for every completed 17 days, one PL should be credited. However, for our convenience, we will credit the PLs at the end of the FY, after completing 12 months.
Please correct me if I am wrong.
From India, Mumbai
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Dear Arun & Sushma,
The employee needs to complete 240 days to avail leaves while in employment. However, when the employee leaves the organization, on a pro-rata basis, they are eligible to encash leaves (Only EL). In the case of CL & SL, it depends on the company's leave policy.
If I am incorrect, please update me.
Thanks,
Amit
From India, Mumbai
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The employee needs to complete 240 days to avail leaves while in employment. However, when the employee leaves the organization, on a pro-rata basis, they are eligible to encash leaves (Only EL). In the case of CL & SL, it depends on the company's leave policy.
If I am incorrect, please update me.
Thanks,
Amit
From India, Mumbai
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Dear Arun & Sushma,
I am clarifying the same. EL does not depend upon the period of working. If he worked only for a month, then he also has EL. EL is basically given to a confirmed employee, but before the confirmation, if he leaves the job, the EL on a pro-rata basis will be encashed. Suppose you have 30 days EL in a year, but an employee can avail EL only after completing 6 months or 240 days or one year. But if he leaves the job after completing two months, he will get encashment of EL with his Full & Final Settlement.
For example, 30 (Total EL in a year) / 12 (months) i.e. 2.5 EL in a month * 2 months = 5 EL will be encashed with his Full & Final settlement.
Hope it is clear now.
Bibek Banerjee
From India, Calcutta
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I am clarifying the same. EL does not depend upon the period of working. If he worked only for a month, then he also has EL. EL is basically given to a confirmed employee, but before the confirmation, if he leaves the job, the EL on a pro-rata basis will be encashed. Suppose you have 30 days EL in a year, but an employee can avail EL only after completing 6 months or 240 days or one year. But if he leaves the job after completing two months, he will get encashment of EL with his Full & Final Settlement.
For example, 30 (Total EL in a year) / 12 (months) i.e. 2.5 EL in a month * 2 months = 5 EL will be encashed with his Full & Final settlement.
Hope it is clear now.
Bibek Banerjee
From India, Calcutta
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Dear Prashant,
Below are the answers to your questions:
1. He is entitled to leave encashment if the leave balance is on his account. Because he is confirmed, and normally, as per the appointment order, an employee is eligible to get the leave after confirmation.
2. I think he may be drawing a salary (Basic + DA) of more than Rs. 3500/- per month, and he is not covered under the Bonus Act. If you are paying any ex-gratia/incentive to the employee, then it is at the discretion of the management to pay the same or not.
3. If the terms and conditions of his appointment order mention the notice period, then his short notice period may be deducted from his leaves.
Regards, Ashok Kuvalekar
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Below are the answers to your questions:
1. He is entitled to leave encashment if the leave balance is on his account. Because he is confirmed, and normally, as per the appointment order, an employee is eligible to get the leave after confirmation.
2. I think he may be drawing a salary (Basic + DA) of more than Rs. 3500/- per month, and he is not covered under the Bonus Act. If you are paying any ex-gratia/incentive to the employee, then it is at the discretion of the management to pay the same or not.
3. If the terms and conditions of his appointment order mention the notice period, then his short notice period may be deducted from his leaves.
Regards, Ashok Kuvalekar
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Dear Prashant,
Your question no. 1 is:
Whether he should be entitled to leave encashment in Full & Final account, e.g., CL/SL?
The answer is only EL is encashable, and you will have to encash. What are CL and SL? Casual Leaves and Sick leaves are not the leaves that come in the category of encashment. Only Earned Leaves are encashable.
Your questions no. 2 and 3 are:
2) Whether he should be entitled to a Bonus?
3) If yes, then how much, I mean 8.33% or the declared one?
Yes, he is entitled to a Bonus same as it is applicable to other employees.
Your question no. 4 is:
4) He has not served the notice period. Do I have the right to deduct the 1-month salary from leave or bonus payment?
The answer is YES, you will deduct notice pay from any source up to the limit of his Basic Salary.
Bibhutosh Bhadauria
From Australia, Balwyn
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Your question no. 1 is:
Whether he should be entitled to leave encashment in Full & Final account, e.g., CL/SL?
The answer is only EL is encashable, and you will have to encash. What are CL and SL? Casual Leaves and Sick leaves are not the leaves that come in the category of encashment. Only Earned Leaves are encashable.
Your questions no. 2 and 3 are:
2) Whether he should be entitled to a Bonus?
3) If yes, then how much, I mean 8.33% or the declared one?
Yes, he is entitled to a Bonus same as it is applicable to other employees.
Your question no. 4 is:
4) He has not served the notice period. Do I have the right to deduct the 1-month salary from leave or bonus payment?
The answer is YES, you will deduct notice pay from any source up to the limit of his Basic Salary.
Bibhutosh Bhadauria
From Australia, Balwyn
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FW Full and final settlement of all my dues including salary leave encashment Gratuity PF .zip
Full n final settlement.doc