What are the rules for compensating an employee for balanced leaves and short notice period given by the employer while terminating:
1. Is the employer obliged to compensate the employee for outstanding sick leaves?
2. On what basis is the employer supposed to compensate the employee for outstanding privilege leaves - basic salary or gross salary? The appointment letter states only 'pay in lieu of notice' and does not specify basic or gross. However, the HR claims that it is in the manual. My question is what is the position in law on this?
3. Is the employer obliged to compensate the employee for facilities provided to him like a car and insurance for the short notice period because the employer gave a short notice?
From India, Mumbai
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1. Is the employer obliged to compensate the employee for outstanding sick leaves?
2. On what basis is the employer supposed to compensate the employee for outstanding privilege leaves - basic salary or gross salary? The appointment letter states only 'pay in lieu of notice' and does not specify basic or gross. However, the HR claims that it is in the manual. My question is what is the position in law on this?
3. Is the employer obliged to compensate the employee for facilities provided to him like a car and insurance for the short notice period because the employer gave a short notice?
From India, Mumbai
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Please go through the respective leave policy of your company.
1. As per the law, the employer is not liable to pay any compensation for outstanding Sick Leaves.
2. Please review the leave policy of your company. According to the Factories Act, there is no specific provision on whether Earned Leave (EL) should be encashed based on Basic & D.A or on a gross basis.
3. The employer is not obligated to provide Car or Insurance facilities until the completion of the notice period if the company requests an employee to leave before the notice period ends. The employer must pay all salary components (notice pay) as compensation for the shortened notice period.
From India, Lucknow
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301. As per the law, the employer is not liable to pay any compensation for outstanding Sick Leaves.
2. Please review the leave policy of your company. According to the Factories Act, there is no specific provision on whether Earned Leave (EL) should be encashed based on Basic & D.A or on a gross basis.
3. The employer is not obligated to provide Car or Insurance facilities until the completion of the notice period if the company requests an employee to leave before the notice period ends. The employer must pay all salary components (notice pay) as compensation for the shortened notice period.
From India, Lucknow
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Mr. ANUJ
Section 80(1) of the Factories Act clearly states what constitutes 'wages' to be paid to an employee when he avails the leave or encashes the same. It means gross earnings, not basic + DA only. The wording is total full-time earnings including DA but excluding OT and bonus. Whatever is paid when an employee is on annual leave should be paid when wages are paid in lieu of the quantum of leave.
Email: varghese21283@gmail.com
Phone: 9961266966
From India, Thiruvananthapuram
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Section 80(1) of the Factories Act clearly states what constitutes 'wages' to be paid to an employee when he avails the leave or encashes the same. It means gross earnings, not basic + DA only. The wording is total full-time earnings including DA but excluding OT and bonus. Whatever is paid when an employee is on annual leave should be paid when wages are paid in lieu of the quantum of leave.
Email: varghese21283@gmail.com
Phone: 9961266966
From India, Thiruvananthapuram
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Mr. Anonymous,
If your firm is not a factory, forget about the Factories Act. Read the definition of wages and other provisions of the Shops & Commercial Establishment Act of your state and follow it. Generally, there is no law stating that CL/SL should be encashed if not mentioned in the contract of appointment.
Email: varghese21283@gmail.com
Phone: 09961266966
From India, Thiruvananthapuram
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If your firm is not a factory, forget about the Factories Act. Read the definition of wages and other provisions of the Shops & Commercial Establishment Act of your state and follow it. Generally, there is no law stating that CL/SL should be encashed if not mentioned in the contract of appointment.
Email: varghese21283@gmail.com
Phone: 09961266966
From India, Thiruvananthapuram
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