Doubt In EL Settlement - CiteHR
Asst. Officer - P&a
Legal/ Ir

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Dear Seniors,

Please clarify the below 2 doubts:

1. I have a doubt in EL calculation while making full and final settlement. We are adding 15 EL to each and every employee after completing one year. But my doubt is, if an employee is leaving the organisation after 1 1/2 year, whether we have to calculate leave encashment for 1 year or 1 1/2 year since he is leaving in middle of the year. (ex: DOJ : 01/01/2010, DOL : 30/06/2011). There is no shortage in notice period.

2. One of our employees is leaving with effect from the closing hours of 30.07.2011. Please let me know whether his salary to be calculated for 30 days or 31 days as 31st is holiday i.e. Sunday. One day salary is not a problem for the organisation. But I want to know the procedure as per Act. If we deduct one day salary, it will be effected on PF & bonus. Generally what we are following is, if LOPs are considered, we are calculating salary depending on days falling in that particular month. i.e. in March, we consider 31 days, in February 28/29 days, in April, 30 days. Please clarify whether it is correct or not.

If possible, please inform me regarding ACT so that I can refer. Our office is registered under Shops & Establishment and Factory is registered under Factories Act.

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Dear Ganesh, If 15 days EL for one completed year of service, than it will be 7.5 days for the remaining 1/2 year. Regards, SND
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