21 days of leave wages are required to be paid to employees in a year. Is there a time limit by which the leave wages of the previous year should be paid to employees as per the Wages/Factory Act or rules? Please also clarify whether leave wages are to be paid according to the calendar year or the financial year.
From India, Mumbai
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From India, Mumbai
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Leave wages are calculated as per the calendar year and the Factory Act, which specifies working 240 days for every employee. You are required to grant 1 leave for every 20 days worked, resulting in a total of 13 leaves. Additional leaves such as CL/SL depend on the company's policy. Accumulation of leave is permitted up to 40 days; exceeding this limit will result in the loss of accumulated leave. Please correct me if there are any mistakes.
From India, Pune
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6From India, Pune
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Our learned member suchita elaborated the act. but one small correction. leave accumulated more than 30 days shall lapse.
From India, New Delhi
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From India, New Delhi
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Dear Friend, Exactly, leave encashment is totally discretion of employer he wants to give or not. No wordings in this regard mentioned in Labour laws. Rgds
From India, Mumbai
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From India, Mumbai
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The leave applicability differs from state to state, governed by the respective shop and establishment act. It is not uniform . Neither the companies can decide lesser number of days
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Sir, What are the Leave (ie,CL,SL,PL) taken the employee for calender year, and also which leave carry forward to next year. Kindly provide the all details. It is very urgent regards K.Sivakumar
From India, Chennai
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From India, Chennai
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Annual leave with wages differs from state to state and Act to Act. For example, under the Shops Act in Maharashtra, 21 days of leave for every year (if worked for 240+ days) is mentioned. Under the Factories Act, 1 day of leave for every 20 days worked is prescribed. One will be eligible for this leave if 240+ days are worked in that year.
Please specify your state and type of establishment to guide you correctly.
Shrikant
Email: shrikant_pra@yahoo.com
From India, Mumbai
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Please specify your state and type of establishment to guide you correctly.
Shrikant
Email: shrikant_pra@yahoo.com
From India, Mumbai
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Under the Factories Act, it is mandatory to pay leave wages before the employee proceeds on leave. Refer to your state's Shops Act for leave provisions. In Maharashtra, under the Shops Act, leave wages are payable only at the time of the employee's separation.
From India, Mumbai
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From India, Mumbai
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Sir/Madam,
Leave with wages should be paid to employees at the beginning of the subsequent calendar year, i.e., leave with wages is to be calculated for the calendar year and not the financial year. According to the Factories Act, leave with wages can be accumulated up to 30 days as of the first of January. If it exceeds 30 days, the number of days beyond 30 will be forfeited.
In some companies, a leave encashment system has been introduced to motivate employees. There is no hard and fast rule on leave encashment in industries.
Regards,
Raju
From India, Madras
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Leave with wages should be paid to employees at the beginning of the subsequent calendar year, i.e., leave with wages is to be calculated for the calendar year and not the financial year. According to the Factories Act, leave with wages can be accumulated up to 30 days as of the first of January. If it exceeds 30 days, the number of days beyond 30 will be forfeited.
In some companies, a leave encashment system has been introduced to motivate employees. There is no hard and fast rule on leave encashment in industries.
Regards,
Raju
From India, Madras
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Raju,
You are wrong; leave wages are not to be paid (unless in a factory). Leave is given for employees to enjoy. It is a different matter that employers pay off leave wages, especially to contract workers to save. If an employee is actually given leave, the employer would pay his share of PF & ESI contributions on wages for leave enjoyed. When leave wages are paid, these contributions are zero for paid leave wages.
Shrikant Prabhudesai
From India, Mumbai
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You are wrong; leave wages are not to be paid (unless in a factory). Leave is given for employees to enjoy. It is a different matter that employers pay off leave wages, especially to contract workers to save. If an employee is actually given leave, the employer would pay his share of PF & ESI contributions on wages for leave enjoyed. When leave wages are paid, these contributions are zero for paid leave wages.
Shrikant Prabhudesai
From India, Mumbai
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