The section 79(3) says that EL should be paid at 1 day for every 20 days worked. Then is the use of saying 240 days condition in subsection 1 and 2/3 days condition in subsection 2. They could have simply added that everyone can get 1 EL for every 20 working days.
So please clarify whether an employee is eligible for 5 days of EL if they quit after working for 91 days.
From India, Mumbai
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So please clarify whether an employee is eligible for 5 days of EL if they quit after working for 91 days.
From India, Mumbai
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Dear Prakash,
Section 79 of the Factories Act, 1948 is a comprehensive section dealing with the concept of Annual Leave With Wages for the workers under the Act. It is important to understand that this section contains various provisions under its different subsections addressing different aspects and situations related to this specific type of leave.
Sec. 79(1) covers the minimum number of days worked in a calendar year required to earn the leave, the rate at which it is calculated based on the number of days worked, and the normal time when the leave can be taken by the employee.
Sec. 79(2) discusses the entitlement to leave in cases where a worker starts their service on a day other than the first day of January in the calendar year and outlines how it is calculated.
Sec. 79(3) specifically addresses the calculation and payment of wages in place of the leave that is accrued by a worker in situations where their employment is terminated during any calendar year due to discharge, dismissal, resignation, superannuation, or death.
By reading subsections (1) and (2) of Sec. 79 together, it can be understood that an employee who resigns after just 91 days of service is not entitled to earn any leave and therefore does not need to be compensated for unused leave upon termination of employment.
From India, Salem
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6185Section 79 of the Factories Act, 1948 is a comprehensive section dealing with the concept of Annual Leave With Wages for the workers under the Act. It is important to understand that this section contains various provisions under its different subsections addressing different aspects and situations related to this specific type of leave.
Sec. 79(1) covers the minimum number of days worked in a calendar year required to earn the leave, the rate at which it is calculated based on the number of days worked, and the normal time when the leave can be taken by the employee.
Sec. 79(2) discusses the entitlement to leave in cases where a worker starts their service on a day other than the first day of January in the calendar year and outlines how it is calculated.
Sec. 79(3) specifically addresses the calculation and payment of wages in place of the leave that is accrued by a worker in situations where their employment is terminated during any calendar year due to discharge, dismissal, resignation, superannuation, or death.
By reading subsections (1) and (2) of Sec. 79 together, it can be understood that an employee who resigns after just 91 days of service is not entitled to earn any leave and therefore does not need to be compensated for unused leave upon termination of employment.
From India, Salem
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If 91 days is 2/3 of the days from his joining to the end of calendar year,he is eligible,as per sec 79 (2).
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Umakanthan sir, thank you for your clarification, but I still don't understand why it's mentioned in section 79(3) 'even if they had not worked for the entire period mentioned in subsections 1 and 2, EL shall be paid at the rate mentioned in the beginning of the section.' Please clarify this point for which I will be very grateful to you.
From India, Mumbai
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From India, Mumbai
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Thanks for your clarification, but I still don't understand why it's mentioned in section 79(3) "even if they had not worked for the entire period mentioned in subsections 1 and 2, EL shall be paid at the rate mentioned at the beginning of the section." Please clarify this point for me, for which I would be very grateful.
From India, Mumbai
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From India, Mumbai
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Dear Prakash,
This is just to amplify the clarification given by Learned Mr. Umakanthan. Let me put it succinctly as below:
Section 79(1) refers to the eligibility norms for those employees who are already in service from the beginning of the calendar year, while section 79(2) refers to those employees who join in the middle of the calendar year and are continuing in service till the end of that calendar year.
Therefore, those regular workmen who leave the services on their own, like resignation, even after putting in attendance of 239 days in the calendar year in which he is leaving the services (i.e., resignation), are not entitled to annual leave with wages. An employee who resigns after 91 days of service in a calendar year is not entitled to earn leave, and hence the question of encashment does not arise.
Panchsen
P. Senthilkumar
9884009193
From India, Chennai
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This is just to amplify the clarification given by Learned Mr. Umakanthan. Let me put it succinctly as below:
Section 79(1) refers to the eligibility norms for those employees who are already in service from the beginning of the calendar year, while section 79(2) refers to those employees who join in the middle of the calendar year and are continuing in service till the end of that calendar year.
Therefore, those regular workmen who leave the services on their own, like resignation, even after putting in attendance of 239 days in the calendar year in which he is leaving the services (i.e., resignation), are not entitled to annual leave with wages. An employee who resigns after 91 days of service in a calendar year is not entitled to earn leave, and hence the question of encashment does not arise.
Panchsen
P. Senthilkumar
9884009193
From India, Chennai
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