I have a query. Can anyone please help me out? I saw in one of the replies that 60 EL can be accumulated, and the rest get lapsed. I truly agree with this point, but I have a doubt. Is this point written in the Bombay Establishment Act? If written, then where exactly is it written? If not, then where is it written that EL gets lapsed after 60?
I will really be thankful if someone answers my question. Thank you.
Regards
From India, Mumbai
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I will really be thankful if someone answers my question. Thank you.
Regards
From India, Mumbai
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As per the Bombay Shops and Establishment Act, you can accumulate earned leave (EL) up to 42 days only.
Chapter: Leave with Pay and Payment of Wages
Section 35: Leave
(1) (a) Subject to the provisions of clause (b), every employee who has been employed for not less than three months in any year shall, for every 60 days on which he has worked during the year, be allowed leave, consecutive or otherwise, for a period of not more than five days.
(b) Every employee who has worked for not less than two hundred and forty days during a year [irrespective of the date of commencement of his service] shall be allowed leave, consecutive or otherwise, for a period of not less than twenty-one days:
Provided that such leave may be accumulated up to a maximum period of forty-two days.
Explanation: The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days during the period of such leave on which a shop or commercial establishment remains closed under sub-section (1) of section 18 or on which he is entitled to a holiday under sub-section (1) of section 24 or section 31.
(2) If an employee entitled to leave under sub-section (1) [or (1-A)] is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect of the leave.
(3) If an employee entitled to leave under sub-section (1) [or (1-A)] is refused the leave, he may give intimation to the Inspector or any other officer authorized in this behalf by the [State] Government regarding such refusal. The Inspector shall enter such intimation in a register kept in such form as may be prescribed. [The employee shall also send a copy of such intimation to his employer and, thereupon, the employee shall be entitled to carry forward the unavailed leave without any limit.]
(4) Notwithstanding anything contained in this section, every employee, irrespective of his period of employment, shall be entitled to an additional holiday on the 26th January, 1st May, 15th August, and 2nd October every year. For the holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding overtime) that he earns during the month in which such compulsory holiday falls.
Provided that the employer may require any employee to work in the establishment on all or any of these days, subject to the conditions that for such work the employee shall be paid double the amount of the daily average wages and also leave on any other day in lieu of the compulsory holiday.
Regards,
Eswar
Manager-HR
[Phone Number Removed For Privacy Reasons]
From India, Chennai
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46Chapter: Leave with Pay and Payment of Wages
Section 35: Leave
(1) (a) Subject to the provisions of clause (b), every employee who has been employed for not less than three months in any year shall, for every 60 days on which he has worked during the year, be allowed leave, consecutive or otherwise, for a period of not more than five days.
(b) Every employee who has worked for not less than two hundred and forty days during a year [irrespective of the date of commencement of his service] shall be allowed leave, consecutive or otherwise, for a period of not less than twenty-one days:
Provided that such leave may be accumulated up to a maximum period of forty-two days.
Explanation: The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days during the period of such leave on which a shop or commercial establishment remains closed under sub-section (1) of section 18 or on which he is entitled to a holiday under sub-section (1) of section 24 or section 31.
(2) If an employee entitled to leave under sub-section (1) [or (1-A)] is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect of the leave.
(3) If an employee entitled to leave under sub-section (1) [or (1-A)] is refused the leave, he may give intimation to the Inspector or any other officer authorized in this behalf by the [State] Government regarding such refusal. The Inspector shall enter such intimation in a register kept in such form as may be prescribed. [The employee shall also send a copy of such intimation to his employer and, thereupon, the employee shall be entitled to carry forward the unavailed leave without any limit.]
(4) Notwithstanding anything contained in this section, every employee, irrespective of his period of employment, shall be entitled to an additional holiday on the 26th January, 1st May, 15th August, and 2nd October every year. For the holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding overtime) that he earns during the month in which such compulsory holiday falls.
Provided that the employer may require any employee to work in the establishment on all or any of these days, subject to the conditions that for such work the employee shall be paid double the amount of the daily average wages and also leave on any other day in lieu of the compulsory holiday.
Regards,
Eswar
Manager-HR
[Phone Number Removed For Privacy Reasons]
From India, Chennai
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Thank you very much for promptly replying to my queries. I have a few more questions based on your response.
Accumulation of Leave Days
As per the act you posted, can we accumulate a maximum of 42 days? What happens after 42 days - does the employee receive leave encashment, or does it lapse? I am in the process of creating an HR leave policy, and this particular point has me stuck.
Leave Encashment or Lapse
If it is encashment, could you please direct me to where it is mentioned in the act? If it lapses, kindly guide me to the relevant section.
I am eagerly awaiting your reply. Thank you once again.
Regards
From India, Mumbai
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Accumulation of Leave Days
As per the act you posted, can we accumulate a maximum of 42 days? What happens after 42 days - does the employee receive leave encashment, or does it lapse? I am in the process of creating an HR leave policy, and this particular point has me stuck.
Leave Encashment or Lapse
If it is encashment, could you please direct me to where it is mentioned in the act? If it lapses, kindly guide me to the relevant section.
I am eagerly awaiting your reply. Thank you once again.
Regards
From India, Mumbai
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TN-Shops & Estts.Act. Amendment to Accumulation of leave to 45 days..pdf
Bombay shops & Establishment Act.doc