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I want to confirm the exact rule for the Contract labour Leave encashment - Is it advisable to pay leave with wages every month for contract labour?
Also what would be the exact calculation base for the same.
20th February 2012 From India, Pune
Dear Pravin I am having the same problem in this regard. pls let me know whenever you would get any suggetion or feedback from the seniors. will be thankful to you. Mayur
21st February 2012 From India
The problem occuring is
few people are giving it annually
Few companies are giving Monthly
Some are following 5.76 % of BASIC+DA
Some give on the basis of the perday payment including the all salary emoulment
Which would be the EXACT
Also we need to have the correct supporting document for which ever we are following
Regards
Pravin
21st February 2012 From India, Pune
Dear Pravin,
To pay EL encashment, the worker has to work for 240 days in the year. As such you can calculate the EL @ 1 leave for every 20 days and can be paid in January, for every completed year.
Maximum EL would be 15 days in a year and calculation is monthly wages divided by 30 and multiply with no of eligible leaves for that year.
This shows in Factory Act.
AVGN Vara Prasad.
21st February 2012 From India, Kakinada
We have to follow the system which is more beneficial to workmen. Since the tenure of contract workmen is uncertain, and even ceases even before eligibility period of 240 days it is better to reimburse 1.5 days wages per month with monthly wages and reflect in wage register and it is nothing wrong. Even the eligibility period of 240 days is being recomended to reduce to 90 days in the coming amendment in Factories Act.
22nd February 2012 From India
Dear All
There is no specific period to pay EL encashment . It can be paid in any month as co wish most probable companies will pay during march to show it the end of accounts.
EL is not maximum of 15 days it is to be min 15 days max employers wish.You can show upto 30 days of leave credit in the register. calculation is as follows eg basic + da/26 * no of el encashment.
Basic 5000+DA 500 = 5500/26*30 the figure will be the encashment amount. and for that mandatory 240 days let me post in next
22nd February 2012 From India, Madras
Dear Pravin,
you know very well that every rule & regulation is same under annual leave with pay for permanent & contact labor also.
& as per factory act 1948 , EL is calculated after 240 days & i will be given to max three time in the calender year.
& in case of encashment is under..
1- terminate
2- resigned
3- death
4- superannuation
regards,
nagendra
22nd February 2012 From India, Bahadurgarh
dear all u all r not giving right answer plz never tell anyone wrong answer i m teellling u the right answer
under C&L abolition act the conrtacter must pay the leave amount to every employee
which will b calculated for the calander year and payable in January only at any cost otherwise contractor will be penelized.
amount must be calculatef on EL Workingdays/20*last basic drawn/26(under factory act)
under shop act total el are 15 calculation same as factory act
other 14 leave cl and el last basic/26*14
22nd February 2012 From India, Faridabad
Dear All and mahesh ji
Thanks for sharing
Ihe intension behind paying monthly LEashment is that the contract labour get more in his hand
My query was is this acceptable as per teh law
Also are we sure that we need to take the BASIC+DA Only or all the contents
Regards
Pravin
22nd February 2012 From India, Pune
Dear Praveen and other amount of leave ie payable only and only in january and if u pay monthly it is not under cl act or any other law
the employee can only avail leave in every month not can get any amount
it is payable only on basic+da but baic + da must b equal or more than minimum wage in the state.
any other query dicuss me by telephonic
22nd February 2012 From India, Faridabad
Hi All,
Leave encashment will be given in the following conditions in every situation:
1. in employment - Excess EL from accumulations (accumulation is based on state rules for it)
2. in case of leaving the employment (resign, termination, death, superanuation)
Simple formula is there for it. Basic + DA (not less than minimum wages applicable) divided by 30 & multiply by number of encashable ELs.
regards,
accord services ( Labour Laws Consultant)
NOIDA
phone 9717883475
22nd February 2012 From India, Delhi
Dear All,
As per factories act provision Earned leaves to be calculated on calender year basis and these can be accumulated upto 30 and balance to be paid in january and the total amount paid will be shown in the annual retrun under form no 21 which is required to be sent to chief inspector of factories by 15 th january of each year.
22nd February 2012 From India, Gurgaon
Dear Varaprasad
Normally the monthly wages will be divided by 26 days to calculate the 1 day wage.
All the contract employees are eligible for 1 day leave for every completed days of work. In case of any holiday that too also to be calculated for counting the working days, if the employee worked on previous day and next day of holiday.
23rd February 2012 From India, Kumbakonam
Dear All,
Please confirm me that EL encashment wages is divided by 30 or 26 & EL encashment Amount is under PF contribution or not ? & why is not it/ have ?. it is very confusion for me .If you have on writing that send me .
Regards,
Nagendra
23rd February 2012 From India, Bahadurgarh
Dear Pravin,
Go through the below link for the information on leave encashment for contract labours..
bcic.org.in
23rd February 2012 From India, Bangalore
Dear All,
There is no provision for Leave under CLA as CLA defines short term of employment.
If we are employing contract labour for long duration even under CLA they have the privelage to get the leave as per Companys Standing Order / Shops and Commercial Act / Factories Act or Leave encashment benifits as defined under Standing Order or Act as applicable.
Regards,
Ajay Morolia
23rd February 2012 From India, Delhi
Dear All,
There is no provision of leave under CLA because of CLA defines employement of short tenure.
If we are employing any one under CLA for long duration he is entitled for Leave as per Standing Order / Shops and Commercial Act / Factories Act as applicable.
Regards
Ajay Morolia
23rd February 2012 From India, Delhi
Dear Seniors, My querry is that they can carry forward their leaves for next year or it will lapse (un utilized leaves) please advise. Regards, Prasad
25th December 2012 From India, Mumbai
Dear All,
As per contract Labour act there is no provision for Leave with wages, or Leave encashment, in this case how we can provide leave with wages to contract labour ? And also if we keep them for 480 days obviously we have to confirm them as a regular employee according to conferment of permanent status Act ?
since we are keeping contract workers as a daily wage basis then why should we provide Leave encashment to them?
Pls suggest your comment.
8th May 2017 From India, Chennai
Hello Friends,
Is there any written rule if Leave Encashment either to be done on Basic+Da OR on Gross Salary per month.
Please share if you have anywhere in writing.
24th October 2017 From India, Faridabad
Please send us leave with wages notification
23rd February 2018 From India, Bhopal
Hello Friends,
Is there any written rule if Leave Encashment either to be done on Basic+Da OR on Gross Salary per month.
Please share if you have anywhere in writing.
5th March 2018 From United States
If leave with wages is paid monthly, does it requires to consider into PF calculation.
2nd April 2018 From India, Hyderabad
Hello Friends,
Is there any written rule if Leave Encashment done Salary per month.
Please share if you have anywhere in writing.
18th October 2018 From India, Mumbai
Dear All
++++++++++++++ Thanks for your inputs. Wish a happy and prosperous festival of lights, DIWALI +++++++++++++
5th November 2018 From India, New Delhi
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