Dear Mr.Guna
As yours is a factory the encashment of earned leave by "workmen" as defined in the Factories Act is governed by the provisions of Chapter VII of the Factories Act and specifically according to the provisions of section 79(3). You have raised the issue of encashment of medical leave. This stands on a different footing. The issue could be addressed depending on
(i) Whether you have an agreement with the workmen regarding encashment of medical leave? If so the encashment has to be allowed according to the terms of the agreement and the terms of the agreement cannot be changed by the management on its own without the concurrence of the Union.
(ii)If there is no agreement the question is whether you have certified standing orders applicable to the workmen and in the certified standing orders whether there are any provisions regarding encashment of medical leave. If so the provisions of the certified standing orders regarding encashment of medical leave has to be followed.
(iii) If there is no certified standing orders, then you have to see whether the appointment order issued to the workmen contains a clause relating to encashment of medical leave. If so that clause has to be followed.(Model Standing orders do not contain a clause regarding encashment of medical leave).
(iv)If the appointment order is silent then the encashment can be according to the policy of the company in this regard. Though your company policy may not say that the encashment of medical leave of an employee who leaves the company in the middle of the year will be proportionate to the services rendered by him during that year, you will be justified in permitting encashment proportionate to the services rendered during that year. However I want to sound a note of caution here. If the practise of allowing the encashment of full medical leave to an employee even if he leaves the services of the company at the beginning of the year is in vogue for a long time a change to proportional encashment may attract Section 9A of the Industrial Disputes Act regarding change in conditions of service. If you have Union of workmen there is a possibility that they may raise a dispute over this issue under the provisions of the Industrial Disputes Act.
With regards
From India, Madras
169As yours is a factory the encashment of earned leave by "workmen" as defined in the Factories Act is governed by the provisions of Chapter VII of the Factories Act and specifically according to the provisions of section 79(3). You have raised the issue of encashment of medical leave. This stands on a different footing. The issue could be addressed depending on
(i) Whether you have an agreement with the workmen regarding encashment of medical leave? If so the encashment has to be allowed according to the terms of the agreement and the terms of the agreement cannot be changed by the management on its own without the concurrence of the Union.
(ii)If there is no agreement the question is whether you have certified standing orders applicable to the workmen and in the certified standing orders whether there are any provisions regarding encashment of medical leave. If so the provisions of the certified standing orders regarding encashment of medical leave has to be followed.
(iii) If there is no certified standing orders, then you have to see whether the appointment order issued to the workmen contains a clause relating to encashment of medical leave. If so that clause has to be followed.(Model Standing orders do not contain a clause regarding encashment of medical leave).
(iv)If the appointment order is silent then the encashment can be according to the policy of the company in this regard. Though your company policy may not say that the encashment of medical leave of an employee who leaves the company in the middle of the year will be proportionate to the services rendered by him during that year, you will be justified in permitting encashment proportionate to the services rendered during that year. However I want to sound a note of caution here. If the practise of allowing the encashment of full medical leave to an employee even if he leaves the services of the company at the beginning of the year is in vogue for a long time a change to proportional encashment may attract Section 9A of the Industrial Disputes Act regarding change in conditions of service. If you have Union of workmen there is a possibility that they may raise a dispute over this issue under the provisions of the Industrial Disputes Act.
With regards
From India, Madras
Thanks a lot!!!
Regards,
Keshav Korgaonkar
Shantadurgaent.com,Insurance Advisors,Corporate Advisors,Legal Advise,Wage and salary,Shantadurgaent.com,Labour Compliance Audit,SSI registration,NOC from
From India, Mumbai
Regards,
Keshav Korgaonkar
Shantadurgaent.com,Insurance Advisors,Corporate Advisors,Legal Advise,Wage and salary,Shantadurgaent.com,Labour Compliance Audit,SSI registration,NOC from
From India, Mumbai
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