I'm working in a private limited company. As my company is going to close in a few months, but I have two months of earned leave. They are not willing to pay the amount to the employees. Is there any act in Labour Rules to get my leave encashment? Please guide me.
Thank you.
From India, Chennai
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Thank you.
From India, Chennai
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Encashment of leave is purely a subject matter and shall be as per the Leave encashment policy of your company. Normally, in private companies, leave encashment will not be made, except in very established companies like Ashok Leyland, ITC, TATA, etc.
Try to speak to your company's HR and seek their help. Maybe they can suggest some ways that can assist you.
From India, Aizawl
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651Try to speak to your company's HR and seek their help. Maybe they can suggest some ways that can assist you.
From India, Aizawl
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Dear Renu,
If you are a 'worker' under Section 2(l) of the Factories Act, 1948, or a 'person employed' under any State Shops and Establishments Act, the Earned Leave (EL) / Paid Leave (PL) at credit, subject to the statutory accumulation limit, respectively forms part of the terminal benefit. Therefore, encashment of EL upon the termination of employment, for whatever reason, is mandatory only in the case of the termination of such category of employees.
In any other case, it depends on the terms of the contract of employment or the policy of the organization.
From India, Salem
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If you are a 'worker' under Section 2(l) of the Factories Act, 1948, or a 'person employed' under any State Shops and Establishments Act, the Earned Leave (EL) / Paid Leave (PL) at credit, subject to the statutory accumulation limit, respectively forms part of the terminal benefit. Therefore, encashment of EL upon the termination of employment, for whatever reason, is mandatory only in the case of the termination of such category of employees.
In any other case, it depends on the terms of the contract of employment or the policy of the organization.
From India, Salem
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As rightly discussed above, there is no specific relief for you under the law if you are categorized as an officer or executive. However, you may approach your CEO or Operations head to get clarity on this matter. Unless the company is ethically strong, these matters are not transparently kept by many companies.
From India, Visakhapatnam
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From India, Visakhapatnam
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High Courts Judgments & Central Rules on leave encashment.docx
Legal Clarification on Absconding Employee, Contract Labour Engagement & Leave Entitlement Ammen.pdf