Deal Members
Our Company has changed policy regarding Leave encashment and decided not to give
leave Encashment. We getting 30 leave from which 15 to be compulsory utilise and 15 can be only forwarded to next year and it is also up to max 120 leave.
Is there any rules for Leave ???
Pls advise.
Manish
From India, Rajkot
1Our Company has changed policy regarding Leave encashment and decided not to give
leave Encashment. We getting 30 leave from which 15 to be compulsory utilise and 15 can be only forwarded to next year and it is also up to max 120 leave.
Is there any rules for Leave ???
Pls advise.
Manish
From India, Rajkot
Hi Manish
As per my knowledge leave salary is a benefit that company is providing to employees
if company is not encashing leave than benefit goes to employees only with consideration whether they are encashing on basic or gross
for ex. currently your basic is 100 rs. your blc is 15, now if you will encash than you will get 1500
now after 1 year you got increment again your leave balance going to be encashed, now your basic is 110
hence you will get 110*15 = 1650
Now think if you worked for 2 year and your company is carry forwarding your leave balance , in this situation if your total leave balance is 30 than encashment will be 110*30 = 3300 instead of 1500+1650 = 3150
hope this will help you to understand
From India, Ahmadabad
As per my knowledge leave salary is a benefit that company is providing to employees
if company is not encashing leave than benefit goes to employees only with consideration whether they are encashing on basic or gross
for ex. currently your basic is 100 rs. your blc is 15, now if you will encash than you will get 1500
now after 1 year you got increment again your leave balance going to be encashed, now your basic is 110
hence you will get 110*15 = 1650
Now think if you worked for 2 year and your company is carry forwarding your leave balance , in this situation if your total leave balance is 30 than encashment will be 110*30 = 3300 instead of 1500+1650 = 3150
hope this will help you to understand
From India, Ahmadabad
Dear Manish, the leave rule exists for the minimum in a year. does not state about encashment.
considering 15 days encashment... after 8 yrs balance would be 120.. what happens then.. the 9th year 15 days will need to get encashed or lapsed? believe they will be encashed. you could check this.
what happens if employee resigns... leaves can be used to adjust again notice... or serve full notice and get 120 encashed.
Am certain the leave policy would have been well defined to factor these areas.
From India, Mumbai
considering 15 days encashment... after 8 yrs balance would be 120.. what happens then.. the 9th year 15 days will need to get encashed or lapsed? believe they will be encashed. you could check this.
what happens if employee resigns... leaves can be used to adjust again notice... or serve full notice and get 120 encashed.
Am certain the leave policy would have been well defined to factor these areas.
From India, Mumbai
Dear member
Many companies follow their policy of not carrying forward their liabilities coming out of Leave Encashment.
If it is the management's decision to compulsorily let employees to avail leave, then everyone has to follow the same. However, the query of encashing the PL after someone quit, the total number of days towards PL balance and the eligibility for that particular year till he quit, is entitled in Full & Final Settlement.
Hope you understand.
Rgds
Many companies follow their policy of not carrying forward their liabilities coming out of Leave Encashment.
If it is the management's decision to compulsorily let employees to avail leave, then everyone has to follow the same. However, the query of encashing the PL after someone quit, the total number of days towards PL balance and the eligibility for that particular year till he quit, is entitled in Full & Final Settlement.
Hope you understand.
Rgds
Dear Manish,
All the companies have their leave policy based on the labour laws applicable to them.The different Acts contain the provisions of leave entitlement but as far as encashment of leave is concerned, no specific provisions have been enumerated for the quantum of leave,in any of the Acts, which can be accumulated except in the case of termination of services (for any reasons) of the workers.Some of the labour laws,which deals with the earned or privilege leave are as under:-
!. The Factories Act, 1948 stipulates that a worker, who has worked for at least 240 days in a calendar year becomes eligible for earned leave which he can enjoy in the subsequent year. In case of an adult, he/she becomes eligible for a day leave for every 20 days worked in previous year. In case of child, (i.e. a person who has not completed his/her fifteenth year of age) becomes entitled to one day leave for every 15 days worked during previous year.These earned leaves can be carried forward to an extent of 30 days in case of adult and not more than 40 days in case of child.
2. The Mines Act,1952 provides that every person employed in a mine who has completed a calendar year’s service shall be allowed during the subsequent calendar year leave with wages.In the case of a person employed below ground, leave is calculated at the rate of one day for every 15 days of work performed by him/her. In other cases, leave is calculated at the rate of one day for every 20 days of work performed by him/her.
3. Section 26 of the Bidi and Cigar Workers (Conditions of Employment) Act, 1966 mention that an adult worker becomes entitled to annual leave for one day for every 20 days of work performed by him/her during the previous calendar year. Adult workers can carry forward these leaves to the extent of 30 days.In case of a young person he/she becomes entitled to annual leave with wages for one day for every 15 days of work performed by him/her during the previous calendar year, and the same can be carried forward to an extent of 40 days.
4. As per Sales Promotion Employees (Conditions of Service) Act, 1976, employees become eligible for leave with full wages for not less than one month for every 11 months spent on duty. These earned leaves can be encashed on voluntary relinquishment or termination other than by way of punishment.
5. The Plantation Labour Act, 1951provides that an adult worker is entitled to one day of paid leave for every 20 days of work and a child or adolescent worker is entitled to one day of paid leave for every 15 days worked. These leaves can be carried forward to an extent of 30 days.
A common provision in all the above Acts is as that when a worker is discharged or dismissed from service or quits his employment or is superannuated or dies while in service, during the course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his discharge, dismissal, quitting of employment, superannuation or death.
I would like to be enlighten if any member contributes on the aspect of quantum and encashment of leave under any other labour legislations.
BS Kalsi
Member since Aug 2011
From India, Mumbai
All the companies have their leave policy based on the labour laws applicable to them.The different Acts contain the provisions of leave entitlement but as far as encashment of leave is concerned, no specific provisions have been enumerated for the quantum of leave,in any of the Acts, which can be accumulated except in the case of termination of services (for any reasons) of the workers.Some of the labour laws,which deals with the earned or privilege leave are as under:-
!. The Factories Act, 1948 stipulates that a worker, who has worked for at least 240 days in a calendar year becomes eligible for earned leave which he can enjoy in the subsequent year. In case of an adult, he/she becomes eligible for a day leave for every 20 days worked in previous year. In case of child, (i.e. a person who has not completed his/her fifteenth year of age) becomes entitled to one day leave for every 15 days worked during previous year.These earned leaves can be carried forward to an extent of 30 days in case of adult and not more than 40 days in case of child.
2. The Mines Act,1952 provides that every person employed in a mine who has completed a calendar year’s service shall be allowed during the subsequent calendar year leave with wages.In the case of a person employed below ground, leave is calculated at the rate of one day for every 15 days of work performed by him/her. In other cases, leave is calculated at the rate of one day for every 20 days of work performed by him/her.
3. Section 26 of the Bidi and Cigar Workers (Conditions of Employment) Act, 1966 mention that an adult worker becomes entitled to annual leave for one day for every 20 days of work performed by him/her during the previous calendar year. Adult workers can carry forward these leaves to the extent of 30 days.In case of a young person he/she becomes entitled to annual leave with wages for one day for every 15 days of work performed by him/her during the previous calendar year, and the same can be carried forward to an extent of 40 days.
4. As per Sales Promotion Employees (Conditions of Service) Act, 1976, employees become eligible for leave with full wages for not less than one month for every 11 months spent on duty. These earned leaves can be encashed on voluntary relinquishment or termination other than by way of punishment.
5. The Plantation Labour Act, 1951provides that an adult worker is entitled to one day of paid leave for every 20 days of work and a child or adolescent worker is entitled to one day of paid leave for every 15 days worked. These leaves can be carried forward to an extent of 30 days.
A common provision in all the above Acts is as that when a worker is discharged or dismissed from service or quits his employment or is superannuated or dies while in service, during the course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his discharge, dismissal, quitting of employment, superannuation or death.
I would like to be enlighten if any member contributes on the aspect of quantum and encashment of leave under any other labour legislations.
BS Kalsi
Member since Aug 2011
From India, Mumbai
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