Recently my company(Gurgaon Based Telecom Company) has changed the policy for earned leaves. Here is the extract from the policy.
To achieve a greater worklife balance, employees will now be encouraged to take annual leave to rejuvenate themselves and enhance their quality of life.
An employee will continue to be entitled to 25 days of Earned leaves in a calendar year, which are credited in two equal installments of 12.5 days each, in the month of January and July. Henceforth, Earned leaves, if unavailed, can be accumulated upto a maximum of 30 days. Once the maximum limit of 30 days is accumulated, 50 % of unavailed leave balance as on 31st Dec will be encashed and paid alongwith January payroll in the following year and the balance 50% of unavailed leaves will lapse.
My question is:Is it legal to lapse employees Earned Leaves?Is there any act which supports that? Can we challenge it?
From India
To achieve a greater worklife balance, employees will now be encouraged to take annual leave to rejuvenate themselves and enhance their quality of life.
An employee will continue to be entitled to 25 days of Earned leaves in a calendar year, which are credited in two equal installments of 12.5 days each, in the month of January and July. Henceforth, Earned leaves, if unavailed, can be accumulated upto a maximum of 30 days. Once the maximum limit of 30 days is accumulated, 50 % of unavailed leave balance as on 31st Dec will be encashed and paid alongwith January payroll in the following year and the balance 50% of unavailed leaves will lapse.
My question is:Is it legal to lapse employees Earned Leaves?Is there any act which supports that? Can we challenge it?
From India
Dear Mr.Vector
The maximum number of earned leave that is allowed to be accumulated by the employer cannot be less than what is allowed by the law applicable to your establishment (i.e.) whether it is the Factories Act or the Shops and Establishments Act. You have not specified the law that is applicable to your establishment.
With regards
From India, Madras
169The maximum number of earned leave that is allowed to be accumulated by the employer cannot be less than what is allowed by the law applicable to your establishment (i.e.) whether it is the Factories Act or the Shops and Establishments Act. You have not specified the law that is applicable to your establishment.
With regards
From India, Madras
Hello Sir Thanks for your reply. My company’s name is Ericsson India Global Services Pvt Ltd. I don’t know under which law it comes. How do we find that out?
From India
From India
Dear Mr.Vector
Does the place in which you are employed registered as a "Factory" under the Factories Act? Or what is the activity carried on at the place in which you are employed? Answers to these questions can help me in telling you which Act is applicable. The applicability of labour laws is not determined by the name of the Company but by the nature of the activity carried therein.
With regards
V.HARIKRISHNAN
From India, Madras
Does the place in which you are employed registered as a "Factory" under the Factories Act? Or what is the activity carried on at the place in which you are employed? Answers to these questions can help me in telling you which Act is applicable. The applicability of labour laws is not determined by the name of the Company but by the nature of the activity carried therein.
With regards
V.HARIKRISHNAN
From India, Madras
Dear Vector,
There is seems to be no legal ambiguity in the company's policy. The company encourages the employees to avail leave every year. Leave lapses even in Central Government Rules for their employees, if exceeds beyond 300 days.
From India, Delhi
There is seems to be no legal ambiguity in the company's policy. The company encourages the employees to avail leave every year. Leave lapses even in Central Government Rules for their employees, if exceeds beyond 300 days.
From India, Delhi
Dear Friend,
The Government of India allows accumulation of earned leave upto 300 days for all categories of employees. There is no ceiling for half pay leave. It can be accumulated to any number of days and availed of either on medical ground after commutation into full pay leave or as half pay leave as per the choice of the employee. If you are not happy with the amendment in your leave rules, I suggest that instead of thinking to challenge it in a labour court or civil court, you may think of setting up a welfare committee of employees and through it, negotiate with your employers for betterment of leave rules as well as other matters. That would be more convenient and more fruitful instead of litigations. So please consider setting up a welfare commitee (not a trade union please) with other fellow employees and approach your employers for negotiations. Give the management a better proposal for leave policy and take their consent to it. I also request you to please post your experience here in case you work on this suggestion. Thanks and regards,
From India, Pune
The Government of India allows accumulation of earned leave upto 300 days for all categories of employees. There is no ceiling for half pay leave. It can be accumulated to any number of days and availed of either on medical ground after commutation into full pay leave or as half pay leave as per the choice of the employee. If you are not happy with the amendment in your leave rules, I suggest that instead of thinking to challenge it in a labour court or civil court, you may think of setting up a welfare committee of employees and through it, negotiate with your employers for betterment of leave rules as well as other matters. That would be more convenient and more fruitful instead of litigations. So please consider setting up a welfare commitee (not a trade union please) with other fellow employees and approach your employers for negotiations. Give the management a better proposal for leave policy and take their consent to it. I also request you to please post your experience here in case you work on this suggestion. Thanks and regards,
From India, Pune
Hi. All,
Why we are thinking of "LAPSE". Why can't we encourage employees to avail their EL to keep a balance in WORK/Life and same time it should be ensured that the objective of the business is not hampered. For this all employees needs to plan their leave and in planning departmental heads have a greater role to play. For a smooth planning, employees can be allowed to avail leave twice in a year, if required.
In extreme cases (if the employ is not allowed to avail the leave by the organisation due to operational requirement) the company should have a policy to encash unavailed leaves at the end of year.
Seniors - "Is it legal to lapse employees Earned Leaves"? This is still not answered.....
Regards
Sripati
From India, Vadodara
Why we are thinking of "LAPSE". Why can't we encourage employees to avail their EL to keep a balance in WORK/Life and same time it should be ensured that the objective of the business is not hampered. For this all employees needs to plan their leave and in planning departmental heads have a greater role to play. For a smooth planning, employees can be allowed to avail leave twice in a year, if required.
In extreme cases (if the employ is not allowed to avail the leave by the organisation due to operational requirement) the company should have a policy to encash unavailed leaves at the end of year.
Seniors - "Is it legal to lapse employees Earned Leaves"? This is still not answered.....
Regards
Sripati
From India, Vadodara
Sripati,
The term EL is Earned Leave. It should be encashed if unavailed. I don't think it lapses. though I am not a lawyer, lapse should not happen as per legal provisions. Let the experts comment on this.
Pvt companies encash such leaves.
Pon
From India, Lucknow
The term EL is Earned Leave. It should be encashed if unavailed. I don't think it lapses. though I am not a lawyer, lapse should not happen as per legal provisions. Let the experts comment on this.
Pvt companies encash such leaves.
Pon
From India, Lucknow
Dear Mr.Pom
The maximum amount of earned leave that a worker could accumulate under the different law regulating the working conditions like the Factories Act, the Plantation Labour Act and the Mines and the Shops and Establishments Act is limited by the respective Acts. Therefore, if unavailed within a specified time frame, cannot be availed by the worker subsequently. For the Governments the leave rules are different and in their case also earned leave is not allowed to be accumulated without limit.
With regards
V.HARIKRISHNAN
From India, Madras
The maximum amount of earned leave that a worker could accumulate under the different law regulating the working conditions like the Factories Act, the Plantation Labour Act and the Mines and the Shops and Establishments Act is limited by the respective Acts. Therefore, if unavailed within a specified time frame, cannot be availed by the worker subsequently. For the Governments the leave rules are different and in their case also earned leave is not allowed to be accumulated without limit.
With regards
V.HARIKRISHNAN
From India, Madras
Dear Pon,
If an employee is not availaling leave earned by him/her for a considerable time that means he is not willing to avail the benefit. In fact making a provision for lapse of earned leave is just to encourage him/her to take care of his/her work-life balance and avail leave fearing that the same may lapse if not availed for any more time.
From India, Delhi
If an employee is not availaling leave earned by him/her for a considerable time that means he is not willing to avail the benefit. In fact making a provision for lapse of earned leave is just to encourage him/her to take care of his/her work-life balance and avail leave fearing that the same may lapse if not availed for any more time.
From India, Delhi
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