Dear Mr. Govil Nanda,
I posted this because many of our collegues are facing this problem. Though many Managements are aware of this, they try to put pressure on the HR people to find ways and means to avoid payment of leave wages when the employee leaves the organisation! I wanted to know the views of our people all over, so that all HR people know the fact and make up their mind to educate the Management regarding this. I look forward to my other friends to express their views on this.
-Srinaren
From India, Bangalore
16I posted this because many of our collegues are facing this problem. Though many Managements are aware of this, they try to put pressure on the HR people to find ways and means to avoid payment of leave wages when the employee leaves the organisation! I wanted to know the views of our people all over, so that all HR people know the fact and make up their mind to educate the Management regarding this. I look forward to my other friends to express their views on this.
-Srinaren
From India, Bangalore
in my view any employee under the labour laws act can have EL encashment at the time of leaving the organisation. not paying the leave encashment leads to legal punishment with regards valbooj
From India, Hyderabad
From India, Hyderabad
Dear Srinaren,
Encashment of Earned Leave / Privilege leave is mandatory under Factory act and rules. In case the Act is not applicable, then it is at management’s discretion.
Moreover, PF deduction on EL encashment is also mandatory.
As per section 22 (1)..
“an employee who has completed a period of four months in continuous employment, shall be entitled to not less than five days privilege leave for every such completed period”
An employee who leaves the services of the organization after completion of his/her 4 months of continued service will be entitled to get the encashment of EL with his/her full & final settlement.
No other leave encashment is mandatory as per law.
Thanx,
Sweety Singh
From India, Delhi
Encashment of Earned Leave / Privilege leave is mandatory under Factory act and rules. In case the Act is not applicable, then it is at management’s discretion.
Moreover, PF deduction on EL encashment is also mandatory.
As per section 22 (1)..
“an employee who has completed a period of four months in continuous employment, shall be entitled to not less than five days privilege leave for every such completed period”
An employee who leaves the services of the organization after completion of his/her 4 months of continued service will be entitled to get the encashment of EL with his/her full & final settlement.
No other leave encashment is mandatory as per law.
Thanx,
Sweety Singh
From India, Delhi
I have read so many valuable views about EL encashment but i want to know that as per factory act, can management reduce the limit of encashable EL at the time of Leaving the job or retirement.
EL leaves are accumulated by the employee during his service period and suddenly at the time of his retirement management decides to reduce the limit of encashable leaves.
Is there any act. Please clarify.
Mukesh
From Japan
EL leaves are accumulated by the employee during his service period and suddenly at the time of his retirement management decides to reduce the limit of encashable leaves.
Is there any act. Please clarify.
Mukesh
From Japan
Dear Mukesh Factory act does not say anything regarding reduction of EL encashment by management. It is a policy decision and hence the act does not apply. Regards LK
From India, Madras
From India, Madras
The Factories Act restricts accumulation of leave to 30 days. However, any leave refused by the management due to any exigency during the current year shall be transferred in full. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
Hi
Absolutely right as replied by L Kumar
Leaves are accumulated only because of the work pressure and denial by mgt means employee has sacrificed his fun,joy,family sharing,social profit and others and gave his/her time to make profit to mgt,in vice versa when he/she leaves mgt has to compensate the loss by giving encashment by simple logic ,taken earlier given now.
That is the best moral practice of the mgt and rest the law would say whatever,God will bless with grace to the said org.
Hope it will work
thnx
tarun
From India, Lucknow
Absolutely right as replied by L Kumar
Leaves are accumulated only because of the work pressure and denial by mgt means employee has sacrificed his fun,joy,family sharing,social profit and others and gave his/her time to make profit to mgt,in vice versa when he/she leaves mgt has to compensate the loss by giving encashment by simple logic ,taken earlier given now.
That is the best moral practice of the mgt and rest the law would say whatever,God will bless with grace to the said org.
Hope it will work
thnx
tarun
From India, Lucknow
Dear Friends,
Can any one put some light on below case.
Where employee has worked for 9 months and claiming for leave encashment at the time of Full and final (as he resigned after 9 montha)... will he be eligible.
What if people leave before completion of a year... are they eligible for claiming encashment... is it their legal right.
Regards
From India, New Delhi
Can any one put some light on below case.
Where employee has worked for 9 months and claiming for leave encashment at the time of Full and final (as he resigned after 9 montha)... will he be eligible.
What if people leave before completion of a year... are they eligible for claiming encashment... is it their legal right.
Regards
From India, New Delhi
Encashable leave (earned leave) will become due only after completion of one year of service. A person leaving the establishment after 9 months not eligible for earned leave. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
HC MAD 07 LEAVE ENCASHMENT NO WAGES.doc