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Will anybody clarify whether leave is applicable to contract labor under CL (R&A) Act? If the answer is 1 day leave earned for every 20 days worked as per the Factory Act, is it specifically mentioned in the CL Act to follow the above rules? If yes, please provide details under which section or sub-section.

Tapan

From India, Hyderabad
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Firstly, leave with wages is specified in Factories Act, 1948, and any workman working in a factory (whether contract workmen or regular workmen) is entitled to the same. Furthermore, the definition of workmen in Factories Act also includes contract workmen.

Secondly, Section 21 of CLR Act states that the contractor is responsible for the payment of wages, and the principal employer shall authorize wages. The definition of wages under the Contract Labour Act, 1970 is as follows:

(h) "wages" shall have the meaning assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936).

The definition of wages under the Payment of Wages Act is as follows:

(vi) "wages" means all remuneration (whether by way of salary allowances or otherwise) expressed in terms of money or capable of being so expressed, which would be payable to a person employed in respect of his employment or work done in such employment and includes -

(a) any remuneration payable under any award or settlement between the parties or order of a court;

(b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period;

(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other name);

(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract, or instrument which provides for the payment of such sum, whether with or without deductions but does not provide for the time within which the payment is to be made;

(e) any sum to which the person employed is entitled under any scheme framed under any law for the time being in force, but does not include -

(1) any bonus (whether under a scheme of profit-sharing or otherwise) which does not form part of the remuneration payable under the terms of employment or which is not payable under any award or settlement between the parties or order of a court;

(2) the value of any house-accommodation or of the supply of light, water, medical attendance, or other amenity or of any service excluded from the computation of wages by a general or special order of the State Government;

(3) any contribution paid by the employer to any pension or provident fund and the interest which may have accrued thereon;

(4) any traveling allowance or the value of any traveling concession;

(5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment; or

(6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).

A combined reading of the above two definitions stipulates that the contractor is required to pay leave wages, and the Principal Employer should ensure it.

From United States
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sir, leave with wages is mandatory for contract labors?
From India, Bengaluru
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