Dear Mentors, I have a query that can any contract lobour can en cash their Earned Leave ? if yes how much leaves are necessary to en cash?
From India, New Delhi
From India, New Delhi
Dear Tarsem, As per the latest practices the Contractual employees can not avail the Leave encashment facility. However, the regular on roll employees can. Regards,
From India, Pune
From India, Pune
Dear Partap, are you sure about this? did you see any written matter? I think contractual employee are also avail. i am just confused?
From India, New Delhi
From India, New Delhi
Good question
We have been grappling on this also
The factories act requires all workers to be given annual leave, including contract labour
There is no mention of leave encashment in factories act. Instead it provides for a maximum carry forward of the number of leave days.
As a general practice leave encashment is a bad idea, workers should be given leave.
If you are giving leave encashment, definately ensure that it's done annually and not on monthly basis, which is a practice that lots of contractors follow to avoid the trouble of keeping leave records. Giving monthly leave encashment leaves a trail and documentary evidence that workers were denied leave (by paying monthy you are ensuring that they do not have accumulated leave).
If you are paying leave encashment on monthly basis, again if you are marking all persons as leave without pay for absence during the year, the same problem will arise - that you are denying them leave.
This can be considered a bad labour practice as well as exploitation of contract workers, which can lead to further problems
If anyone has a different point of view, please enlighten me.
From India, Mumbai
We have been grappling on this also
The factories act requires all workers to be given annual leave, including contract labour
There is no mention of leave encashment in factories act. Instead it provides for a maximum carry forward of the number of leave days.
As a general practice leave encashment is a bad idea, workers should be given leave.
If you are giving leave encashment, definately ensure that it's done annually and not on monthly basis, which is a practice that lots of contractors follow to avoid the trouble of keeping leave records. Giving monthly leave encashment leaves a trail and documentary evidence that workers were denied leave (by paying monthy you are ensuring that they do not have accumulated leave).
If you are paying leave encashment on monthly basis, again if you are marking all persons as leave without pay for absence during the year, the same problem will arise - that you are denying them leave.
This can be considered a bad labour practice as well as exploitation of contract workers, which can lead to further problems
If anyone has a different point of view, please enlighten me.
From India, Mumbai
Dear Seniors, Please confirm that during the leave with wages shall the employee entitled full gross salary like weekly offs or Basic+DA? Raju
From India, Secunderabad
From India, Secunderabad
Dear Raju, I think so....because we pay he is on EL/PL leave earned by him from last year. working days.
From India, New Delhi
From India, New Delhi
This is a very good tool to motivate employees avoid taking leaves frequently.
Legally and generally speaking allowing leaves to all employees as per their entitlements does make a good rationale sense.However in reality, today all organisations/ managers are working (managing) with just minimum number of employees. Surpluses of employees are exceptions today.
If all employees start taking leaves (i am talking of their rightful leaves i.e. CL, SL, and AL, which will be min 50 per person an year if not more), day to day work suffers and employers dont make any discount to Managers of suffering any loss/ productivity on this count. In such cases than Managers has to compromise with those few , who are willing to take extra load for person on leave not affecting his own job responsibility, this situation may lead to either compromise in work standards (to meet schedules) or quality or ethics of work.
Just imagine a 50 member organisation which will have 50x50= 2500 Leave days. If 75% of it only leaves taken that will mean 1875 man days......
From India, Delhi
Legally and generally speaking allowing leaves to all employees as per their entitlements does make a good rationale sense.However in reality, today all organisations/ managers are working (managing) with just minimum number of employees. Surpluses of employees are exceptions today.
If all employees start taking leaves (i am talking of their rightful leaves i.e. CL, SL, and AL, which will be min 50 per person an year if not more), day to day work suffers and employers dont make any discount to Managers of suffering any loss/ productivity on this count. In such cases than Managers has to compromise with those few , who are willing to take extra load for person on leave not affecting his own job responsibility, this situation may lead to either compromise in work standards (to meet schedules) or quality or ethics of work.
Just imagine a 50 member organisation which will have 50x50= 2500 Leave days. If 75% of it only leaves taken that will mean 1875 man days......
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.