Hello Seniors,
Please advice in my org. we usually pay the earned leaves every yr. now mgt wants to change the policy by no paying them off but telling them to use these leaves during the year or these leaves will be waived off.
Please suggest whether it is possible in terms of law or not.
Thanks in advance. Waiting for your prompt reply.
From India, Delhi
Please advice in my org. we usually pay the earned leaves every yr. now mgt wants to change the policy by no paying them off but telling them to use these leaves during the year or these leaves will be waived off.
Please suggest whether it is possible in terms of law or not.
Thanks in advance. Waiting for your prompt reply.
From India, Delhi
If you are not encashing is ok and asking the employees to avail is also ok but if some leaves are left over and not allowing for accumulation is against the law. A minimum no.of leaves are to be allowed for accumulation as per the factories act / Shops act and also to be encashed as paid if the employee is leaving the orgqanization, if not there is every possibility that employees may approach the labour department or courts hence better to comply the rules there of.
Regards - kamesh
From India, Hyderabad
186Regards - kamesh
From India, Hyderabad
Thanks for your prompt reply. Ill go through the Factories Act once again for this query. What would be the possible way to come over this problem. Regards
From India, Delhi
From India, Delhi
It is not illegal if any leave laspses. Many comapnies have policies that encourages their employees to avail all earned leave (s) within a stipulated timeframe. Failing to take their leave within the given timeframe will make it lapse. Leave not used can neither be carried forward nor it can be encashed.
It is very fair, ethical and legal.
Thanks,
Sanjeev
From India, Mumbai
It is very fair, ethical and legal.
Thanks,
Sanjeev
From India, Mumbai
Whether to have provisions to encash leave or not is a decision of a company. There is no law to cover that. You have law (Factories Act, 1948) to ensure that all employees of an organization get earned leave / paid leave; there is also a law to set a limit to treat the encashment money as taxable. Everything else is at the sole discretion of the company.
From India, Mumbai
From India, Mumbai
Dear Shree,
Legal opinion in this matter is mentioned in 3 points as under:-
1) As per subsection 5 of Section 79 under Factories Act 1948, specifies that if a worker does not take whole of the leave allowed to him in a calendar year, such balance leaves shall be carried forward to next year.
Hence Earned Leaves can not be lapsed at the end of year if unutlised.
2) Further, there is provision in the above section that Maximum leaves to be carried forward to next year can not exceed 30.
Hence you can lapse unavailed leaves more than 30.
3) As per subsection 6 of Section 79 under Factories Act 1948, if a worker applied for leaves during the year and same were not granted by management. In such case "leaves applied but not granted" shall be carried forward to next year irrespective of limit.
Rest, you can decide as per company policy. Always remember, no company policy is allowed to lower the benefits as provided by statutory provisons.
Hope I have been able to satisfy your query.
Regards,
Lokender
From India, Gurgaon
Legal opinion in this matter is mentioned in 3 points as under:-
1) As per subsection 5 of Section 79 under Factories Act 1948, specifies that if a worker does not take whole of the leave allowed to him in a calendar year, such balance leaves shall be carried forward to next year.
Hence Earned Leaves can not be lapsed at the end of year if unutlised.
2) Further, there is provision in the above section that Maximum leaves to be carried forward to next year can not exceed 30.
Hence you can lapse unavailed leaves more than 30.
3) As per subsection 6 of Section 79 under Factories Act 1948, if a worker applied for leaves during the year and same were not granted by management. In such case "leaves applied but not granted" shall be carried forward to next year irrespective of limit.
Rest, you can decide as per company policy. Always remember, no company policy is allowed to lower the benefits as provided by statutory provisons.
Hope I have been able to satisfy your query.
Regards,
Lokender
From India, Gurgaon
I want a applicaiton for casual leave for two days how to write pleae give me outline casual leave for illness sef
From India, New Delhi
From India, New Delhi
Dear Sir,
Any Co., if it is in profits, allow employees to surrender EL for encashment generally in January
of every year.
The E.L.encashment policy, prevents leave taking unnecessarily and working for the Co.in need
of work/production.
In General when the industry is not fully busy affairs, they will ask the employees to avail EL
to reduce cost to the Company.
The Co. prescribes leave rules of their own accord based on statutes. E.L. is governed by Factories
Act. The E.L. in general can accumulate for 30 days. The individual Co. rules permits the employees
to accumulate it any no. of EL days.(EX.-90/120 days etc).
For encashment of EL, no law regulates. Hence one should follow as Co. policy from time to time.
D.Gurumurthy
LL.IR & PM Cosultant
From India, Hyderabad
Any Co., if it is in profits, allow employees to surrender EL for encashment generally in January
of every year.
The E.L.encashment policy, prevents leave taking unnecessarily and working for the Co.in need
of work/production.
In General when the industry is not fully busy affairs, they will ask the employees to avail EL
to reduce cost to the Company.
The Co. prescribes leave rules of their own accord based on statutes. E.L. is governed by Factories
Act. The E.L. in general can accumulate for 30 days. The individual Co. rules permits the employees
to accumulate it any no. of EL days.(EX.-90/120 days etc).
For encashment of EL, no law regulates. Hence one should follow as Co. policy from time to time.
D.Gurumurthy
LL.IR & PM Cosultant
From India, Hyderabad
Dear Mr. Lokender, Can you please eloberate on "leaves applied but not granted" shall be carried forward to next year irrespective of limit? I dont understand. Thanks, Lakshmi Anand K
From India, Tiruppur
From India, Tiruppur
No organization shall frame a policy against statutory provisions. I feel, as HR professional it is our responsibility to advice the management on statutory provisions and consequences for violation of the same. Any policy which provides better facility/ies than statutory provisions will be acceptable to statutory authorities / courts else they will become void if challenged. Any such situation will put management in an embarrassing position, which shall be averted by us as professionals.
Regards
From India, Hyderabad
Regards
From India, Hyderabad
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