Hi Everyone!
I need one help. If an employee who is confirmed but does not complete one full year of service, do we encash his/her Earned Leaves?
One employee joined on 30th March, 2015. His last working day was 2nd March, 2016. He has some earned leaves credited to him on 1st Jan, 2016 and some earned for the 2 months he/she worked for 2016. Since the employee hasn't completed one year, do we encash the Earned Leaves?
Apologies for my ignorance here.
thanks
From India, undefined
I need one help. If an employee who is confirmed but does not complete one full year of service, do we encash his/her Earned Leaves?
One employee joined on 30th March, 2015. His last working day was 2nd March, 2016. He has some earned leaves credited to him on 1st Jan, 2016 and some earned for the 2 months he/she worked for 2016. Since the employee hasn't completed one year, do we encash the Earned Leaves?
Apologies for my ignorance here.
thanks
From India, undefined
Dear Pratik, Yes he will be eligible for proportionate leave. It is clearly stated in Factory Act. Best regards Parimal
From India, Ahmadabad
4From India, Ahmadabad
Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated at the rate of - (i) if an adult, one day for every twenty days of work performed by him during the previous calendar year;
(ii) if a child, one day for every fifteen days of work formed by him during the previous calendar year.
Explanation 1 : For the purpose of this sub-section - (a) any days of lay off, by agreement or contract or as permissible under the standing orders;
From India, Shimla
(ii) if a child, one day for every fifteen days of work formed by him during the previous calendar year.
Explanation 1 : For the purpose of this sub-section - (a) any days of lay off, by agreement or contract or as permissible under the standing orders;
From India, Shimla
Dear Pratik
If you are HR, it is reasonably expected of you by people to know the subject relating to HR.However it is not wrong to not to know every thing.Therefore do not be apologetic about ignorance but make efforts to know things by yourself by reading relevant material and getting guidance from seniors.Now, it is not known whether your establishment is a commercial establishment or a factory. It is also not known whether you have a leave policy in place in your establishment and if so what it stipulates about leave encasement.However the Shops & Establishment Acts usually ( which is a State Act and may vary from State to State) and Factories Act provide for encashment of leave on discharge/resignation/termination of an employee from service and your policy shall conform to the statutory provisions at the minimum of the benefits.however your leave policy can provide more beneficial terms than under the relevant Act.
B.Saikumar
From India, Mumbai
If you are HR, it is reasonably expected of you by people to know the subject relating to HR.However it is not wrong to not to know every thing.Therefore do not be apologetic about ignorance but make efforts to know things by yourself by reading relevant material and getting guidance from seniors.Now, it is not known whether your establishment is a commercial establishment or a factory. It is also not known whether you have a leave policy in place in your establishment and if so what it stipulates about leave encasement.However the Shops & Establishment Acts usually ( which is a State Act and may vary from State to State) and Factories Act provide for encashment of leave on discharge/resignation/termination of an employee from service and your policy shall conform to the statutory provisions at the minimum of the benefits.however your leave policy can provide more beneficial terms than under the relevant Act.
B.Saikumar
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
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