DEAR SIR / MADAM,
I HAVE A QUERY. CAN ANY ONE PLEASE HELP ME OUT. I SAW IN ONE OF THE REPLIES THAT 60 EL CAN BE ACCUMULATED & THE REST GET LAPSED. I TRULY AGREE TO THIS POINT. BUT I DOUBT IS THERE. IS THIS POINT IS WRITTEN IN BOMBAY ESTABLISMENT ACT. IF WRITTEN THEN WHERE EXACTLY WRITTEN. IF NOT THEN WHERE IT IS WRITTEN THAT EL GET\'S LAPSED AFTER 60.
I WILL REALLY BE THANKFUL IF SOMEONE ANSWERS TO MY QUESTION. THANK YOU.
From India, Mumbai
I HAVE A QUERY. CAN ANY ONE PLEASE HELP ME OUT. I SAW IN ONE OF THE REPLIES THAT 60 EL CAN BE ACCUMULATED & THE REST GET LAPSED. I TRULY AGREE TO THIS POINT. BUT I DOUBT IS THERE. IS THIS POINT IS WRITTEN IN BOMBAY ESTABLISMENT ACT. IF WRITTEN THEN WHERE EXACTLY WRITTEN. IF NOT THEN WHERE IT IS WRITTEN THAT EL GET\'S LAPSED AFTER 60.
I WILL REALLY BE THANKFUL IF SOMEONE ANSWERS TO MY QUESTION. THANK YOU.
From India, Mumbai
As per bombay shops and establishment act you can accumulate EL upto 42 days only.
Chapter: Leave with Pay and Payment of Wages
Section 35: Leave[(1) (a) Subject to the provisions of clause (b), every employee who has been employed for not less than three
months in any year, shall for every 60 days on which he has worked during the year be allowed leave, consecutive
or otherwise, for a period of not more than five days.
(b) every employee who has worked for not less than two hundred and forty days during a year [irrespective of the
date of commencement of his service,] shall be allowed leave, consecutive or otherwise, for a period of not less
than twenty-one days :
Provided that such leave may be accumulated up to a maximum period of forty-two days.
Explanation : The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days
during the period of such leave, on which a shop, or commercial establishment remains closed under sub-section
(1) of section 18, or on which he is entitled to a holiday under sub-section (1) of section 24 or section 31.]
(2) If an employee entitled to leave under sub-section (1) [or (1-A)] is discharged by his employer before he has
been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment
before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect
of the leave.
(3) If an employee entitled to leave under sub-section (1) [or (1-A)] is refused the leave, he may give intimation to
the Inspector or any other officer authorised in this behalf by the [State] Government regarding such refusal. The
Inspector shall enter such intimation in a register kept in such form as may be prescribed. [The employee shall also
send a copy of such intimation to his employer and , thereupon, the employee shall be entitled to carry forward the
unavailed leave without any limit.]
(4) Notwithstanding anything contained in this section, every employee, irrespective of his period of employment ,
shall be entitled to additional holiday on the 26th January, [1st May, 15th August and 2nd October every year. For
holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding
overtime), which he earns during the month in which such compulsory holiday falls.
Provided that the employer may require any employee to work in the establishment on all or any of these days,
subject to the conditions that for such work the employee shall be paid double the amount of the daily average
wages and also leave on any other day in lieu of the compulsory holiday.]
Eswar
Manager-HR
08056041800
From India, Chennai
46Chapter: Leave with Pay and Payment of Wages
Section 35: Leave[(1) (a) Subject to the provisions of clause (b), every employee who has been employed for not less than three
months in any year, shall for every 60 days on which he has worked during the year be allowed leave, consecutive
or otherwise, for a period of not more than five days.
(b) every employee who has worked for not less than two hundred and forty days during a year [irrespective of the
date of commencement of his service,] shall be allowed leave, consecutive or otherwise, for a period of not less
than twenty-one days :
Provided that such leave may be accumulated up to a maximum period of forty-two days.
Explanation : The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days
during the period of such leave, on which a shop, or commercial establishment remains closed under sub-section
(1) of section 18, or on which he is entitled to a holiday under sub-section (1) of section 24 or section 31.]
(2) If an employee entitled to leave under sub-section (1) [or (1-A)] is discharged by his employer before he has
been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment
before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect
of the leave.
(3) If an employee entitled to leave under sub-section (1) [or (1-A)] is refused the leave, he may give intimation to
the Inspector or any other officer authorised in this behalf by the [State] Government regarding such refusal. The
Inspector shall enter such intimation in a register kept in such form as may be prescribed. [The employee shall also
send a copy of such intimation to his employer and , thereupon, the employee shall be entitled to carry forward the
unavailed leave without any limit.]
(4) Notwithstanding anything contained in this section, every employee, irrespective of his period of employment ,
shall be entitled to additional holiday on the 26th January, [1st May, 15th August and 2nd October every year. For
holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding
overtime), which he earns during the month in which such compulsory holiday falls.
Provided that the employer may require any employee to work in the establishment on all or any of these days,
subject to the conditions that for such work the employee shall be paid double the amount of the daily average
wages and also leave on any other day in lieu of the compulsory holiday.]
Eswar
Manager-HR
08056041800
From India, Chennai
Dear Eswar sir,
Thanks a lot for promptly replying me on my queries.
Few more queries from your reply.
As per the act which you have posted " we can accumulate maximum 42 days but what after 42 days - employee gets the leave encashment or it get lapse. since i have to make a hr leave policy & got stuck on this point only.
if encashment then where it is written & if lapse then where it is written in the act
awaiting for your reply. Thank you once again
From India, Mumbai
Thanks a lot for promptly replying me on my queries.
Few more queries from your reply.
As per the act which you have posted " we can accumulate maximum 42 days but what after 42 days - employee gets the leave encashment or it get lapse. since i have to make a hr leave policy & got stuck on this point only.
if encashment then where it is written & if lapse then where it is written in the act
awaiting for your reply. Thank you once again
From India, Mumbai
Hi
It is your company policy whether you are going to pay or it lapse. Usually in the most of the companies it will lapse. Accumulation 42 days only encashed. Either the employee should go on leave or it lapse.
Example:
For accumulation of 42 days will take 3 years 6 months if you given 15 days leave per year as paid leave.
So better make such policy after 42 days it will get lapse.
Regards
Eswar
Manager-HR
08056041800
From India, Chennai
It is your company policy whether you are going to pay or it lapse. Usually in the most of the companies it will lapse. Accumulation 42 days only encashed. Either the employee should go on leave or it lapse.
Example:
For accumulation of 42 days will take 3 years 6 months if you given 15 days leave per year as paid leave.
So better make such policy after 42 days it will get lapse.
Regards
Eswar
Manager-HR
08056041800
From India, Chennai
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.
EL under Factories Act.doc