mukeshmehta
15

Dear Sujatha,
First of all u have to change ur policy. The leaves period always starts with the calender year. One EL will be credited to ur a/c after the working of 20 days, means 15 days EL per yr. and as per Factory Act, u can't accumulate more than 30 days EL, if the EL becomes more than 30 whether u have to disburse it or lapse it but maximum u can keep is 30 but it also depends upon the company policy (Standing Orders).
As far as CL and SL is concerned, u have to see how much minimum is applicable. Our here 7 CL, 7 SL and 7 GH is compulsory.
Regards
mukesh

From India, Mumbai
anandkushwaha
hello. sir I want to know that what is the amount of minimum basic salary which we can include in pf member. please sent ur advise as soon as possible.
From India, Mumbai
Amitmhrm
496

Dear Mr. Anand, Upto 6500/- of basic salary needs to be enrolled with PF. Exceeding 6500/- can also be a member if they need it.
From India, Ahmadabad
sujatha_m249
Dear Mukesh Ji,
Thank you so much for your reply.
One of our employee given request to encash his 15 ELs of previous year(2008 - Jan to Dec) due to his personal requirements & the same has been approved by HR Department.
But, the management is denied to pay due to the following statement of company HR policy i. e., "Employees can accumulate Earned Leave upto 45 days. Encashment of Earned Leave will be allowed in case of separation of employees."
Please tell me is the management is correct here?
Thanks & Regards,
Sujatha



From India, Bangalore
Amitmhrm
496

Dear sujatha,
The same is true.
If the company has described it in their HR policy that the accumulated leave will be encashed only at the time of separation from the company or only after minimum 45 EL.
Regards,
Amit Seth.

From India, Ahmadabad
mukeshmehta
15

Dear Sujatha,
Amit is right. If there is Policy that a employee has to accumulate 45 days EL, before that he cant encash that leave but if his/her accumulated leaves goes beyond 45 days then he can encash those leaves. As u have stated, in case of separation the EL will be encashed, its nothing like that if his leaves goes beyond 45 then u have to encash the same.
If we will go on the policy that only at the time of separation EL will be encashed then there is no funda of 45 days or so.
Regards
mukesh

From India, Mumbai
consultme
192

the issue is not clear. usually policy periods will not overlap if you can share the existing leave policy as such, will get more clarity and then i can revert
From India, Bangalore
kraos_1954@yahoo.co.in
30

Dear Ms. Sujatha,
Every organization have their own leave rules. However CL can't be accumulated or encashed, SL can be accumulated to some extent, eacashment part also (most of the organizations won't allow encashment ) that is also as per the company leave policy.
As far as EL is concerne, EL is allowed to accumulate and encashment generally 50% ( a minimum of 15 should be in reserve ) hence this may be applicable in general conditions on completion of 2yr only. If the employee resigns / leaves the company the total leaves to his balance are to be encashed and paid along with the final settlement. Some companies have the LTA provision for this a minimum of 6 / 5 days employee has to avail EL and the same is applicable in case of encashment. All these are subject to the company's leave rules / policies.
I believe that I have addressed you query, in case you need further clarification pl feel free to contact.
Thanks and regards - kameswarao

From India, Hyderabad
Priya Maran
Hi friends,
I have a doubt. Do we have to calculate the amount for EL taking basic salary alone or should it be the last pay drawn by the employee i.e., per day salary at the time of leaving us. How it is been encashed generally.
G Priya

From India, Madras
sujatha_m249
Dear Mukesh Ji & Kameswarao garu,

Thanks for your immediate response.

Mukesh ji yes, even I agree with you “If we will go on the company policy that only at the time of separation EL will be encashed then there is no funda of 45 days or so.”

If this is the case, I think most of the companies are following their own leave policies rather than the state leave rules or factories act/shops and establishment act.

Aside to Mr. Kameshwar Rao:

Yes sir, i got your point regarding the minimum ELs in reserve before encashing ELs. But, is this the company’s own leave policy (or) mentioned in the factories act too?

In our organization we have 6 CLs & 6 SLs per year which are not carry forwarded or encashed and 15 ELs/PLs. about ELs our company policy says like this.
  • The entitlement of Earned Leave will be as per the provisions of the Factories Act, 1948.
  • EL/PL shall be calculated @ 1 leave for every 20 days worked by an employee in a Calendar Year.
  • An employee will be eligible for EL only after working for a continuous period of 240 days in a calendar year. He will be eligible for the EL so earned during the subsequent calendar year.
  • Sundays, holidays and other weekly off days falling within the period of Earned Leave are counted as part of Leave. - (I think this statement is wrong as per the act If I am wrong please correct me.)
  • Employees can accumulate Earned Leave upto 45 days. Encashment of Earned Leave will be allowed in case of separation of employees.

If every (private firms) one is following their own leave policy (adding changes to state leave rules/ factories act) then, is the state leave rules/factories acts are only for Govt. firms/ employees? Is these acts are acting like a base for all firms? No need to follow the exact act by all?


Thanks & Regards,
Sujatha

From India, Bangalore
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