Provisions in all legislative initiatives on leave, specify calculation of leave only on the 'WORKED DAYS' and not for the days the employee was not present. It could be leave on loss of pay, leave with pay. acident leave earned leave. These legislative measures inlcude leave with pay and accident leave for purpose of calculating eligibility. For actual calculation the days will not be included.
Following are excluded
1. Layoff days
2. Leave availed
3. Maternity Leave
4.Any authorised leave
T Sivasankaran
From India, Chennai
367Following are excluded
1. Layoff days
2. Leave availed
3. Maternity Leave
4.Any authorised leave
T Sivasankaran
From India, Chennai
Hello Mr. T.Sivasankaran,
Pl excuse me for my ignorance. I was unable to understand this exactly. Could you pl guide again. Thanks!!
I am too trying to make my post more understandable;
1. 1 year old (confirmed) employee is on leave from 27th November till date.
2. He had 0.5days leave balance
3. On 01st Jan we credit salary & 1.5leave of December.
4. He was not present for the entire month of December
Hence, is he eligible for 2 payable days (salary for 2 days & rest 29 days LWP)?
From India, Ahmedabad
Pl excuse me for my ignorance. I was unable to understand this exactly. Could you pl guide again. Thanks!!
I am too trying to make my post more understandable;
1. 1 year old (confirmed) employee is on leave from 27th November till date.
2. He had 0.5days leave balance
3. On 01st Jan we credit salary & 1.5leave of December.
4. He was not present for the entire month of December
Hence, is he eligible for 2 payable days (salary for 2 days & rest 29 days LWP)?
From India, Ahmedabad
Dear Mr Mehta
1. Legally status of the employee has no relevance to eligibility of leave. Whether confirmed or not an employee is eligible for leave.
2. Legally earned leave is credited on 1st January under Factoried At and Shops Act and Mines Act You can have your practice of crediting on the first of your accounting year. However, the point is that Earned leave is credited once a year and not every month.
3. Shops act provides for Casual leave This is credited normally in advance. However many companies credit this every month and some even go to the extent of saying that the same will lapse if an employee does not avail the same in that month. This condition is not legally correct . Organisations can give credit every month and the same shall lapse only at the end of the year.
3.Leave is credited only for worked days and not for LOP period.Assume an employee is on loss of pay leave for the entire year, then he is not eligible for any wages and no leave is credited to is account
4. Assuming that you give credit evry month, the employee concerned has .5 day leave as on 1st Dec 2012. He is on leave for Dec and you will sanction only .5 days leave. He will hget salary only for .5 day.
5. In December he was on LOP Even assuming he was on leave with pay, law does not provide for earning leave for days not worked whether LOP or with Pay Hence he does not earn any leave for December
6. If the employee continues to be on leave in Jan, he does not get any pay and he also does not earn any leave
I hope I am making it clear
Sivasankaran
From India, Chennai
1. Legally status of the employee has no relevance to eligibility of leave. Whether confirmed or not an employee is eligible for leave.
2. Legally earned leave is credited on 1st January under Factoried At and Shops Act and Mines Act You can have your practice of crediting on the first of your accounting year. However, the point is that Earned leave is credited once a year and not every month.
3. Shops act provides for Casual leave This is credited normally in advance. However many companies credit this every month and some even go to the extent of saying that the same will lapse if an employee does not avail the same in that month. This condition is not legally correct . Organisations can give credit every month and the same shall lapse only at the end of the year.
3.Leave is credited only for worked days and not for LOP period.Assume an employee is on loss of pay leave for the entire year, then he is not eligible for any wages and no leave is credited to is account
4. Assuming that you give credit evry month, the employee concerned has .5 day leave as on 1st Dec 2012. He is on leave for Dec and you will sanction only .5 days leave. He will hget salary only for .5 day.
5. In December he was on LOP Even assuming he was on leave with pay, law does not provide for earning leave for days not worked whether LOP or with Pay Hence he does not earn any leave for December
6. If the employee continues to be on leave in Jan, he does not get any pay and he also does not earn any leave
I hope I am making it clear
Sivasankaran
From India, Chennai
Thank you so much for imparting your valued knowledge. It was glad to know it from legal as well as policy point of view. Just to correct - Ms. Mehta & Not Mr. :) Thanks!!
From India, Ahmedabad
From India, Ahmedabad
Hi Hirel :
The leave policy and the cycle that you apply to your company depends on whether your company falls under Factories act or Shop Act. Also if it is Indian or Multinational company - Service industry or Mfg. You have to consider these factors while defining the policy.
Regards,
Gia
From India, Pune
The leave policy and the cycle that you apply to your company depends on whether your company falls under Factories act or Shop Act. Also if it is Indian or Multinational company - Service industry or Mfg. You have to consider these factors while defining the policy.
Regards,
Gia
From India, Pune
HI Gia,
Thanks for the suggestion. Our company falls into Shop Act & hence my question was whether considering the financial year should be okay! Also, what if we just have 18 CL (no bifurcation) in a year which we encash at the end of year. Is that against law?
From India, Ahmedabad
Thanks for the suggestion. Our company falls into Shop Act & hence my question was whether considering the financial year should be okay! Also, what if we just have 18 CL (no bifurcation) in a year which we encash at the end of year. Is that against law?
From India, Ahmedabad
I do not understand what dofference it makes if it is an Indian Company or MNC We are dicussing about legal situation In Indian context Any organisation engaged in a particular Country need to follow the rules of the land
T Sivasankaran
From India, Chennai
T Sivasankaran
From India, Chennai
The legal situation doesnt change irrespective of Indian or MNC but the decision making factors are generally influenced for e.g. in IT/Non-IT companies. The employees are well of aware of the policies of other similar sized companies and most of the time every policy decisions are questioned, debated etc. Anyhow I coming back to the point in question...
There is no legal enforcement to abide by the calendar or Financial year. You can adopt what suits your organisation and also if MNC you may align with your global practice. Regarding encashing CLs, fyi CL & SL cannot be encashed only PL/EL can be encashed.
I also want to add some inputs for the initial query raised by you, if the employee has been covered under ESIC then he will not be entitled for SL. ESIC settles the leave salary of the employee on submission of all relevant documents on the accident, treatment etc.
Hope my inputs were useful.
- Gia
From India, Pune
There is no legal enforcement to abide by the calendar or Financial year. You can adopt what suits your organisation and also if MNC you may align with your global practice. Regarding encashing CLs, fyi CL & SL cannot be encashed only PL/EL can be encashed.
I also want to add some inputs for the initial query raised by you, if the employee has been covered under ESIC then he will not be entitled for SL. ESIC settles the leave salary of the employee on submission of all relevant documents on the accident, treatment etc.
Hope my inputs were useful.
- Gia
From India, Pune
plz note calculation of earned leave by dedecting days on leave or non working days not applicable universally few shop act like provide calculation of EL on 365 days.its depends on provision of shop act.
Hi Gia,
I am aware about the ESIC clause mentioned by you & also that CL / SL cannot be encashed. Basically I was trying to point out the fact that according to Shop Act should it be okay if there are no bifurcation in leaves.
T.Sivasankaran has nicely put across the point & explained the same; thoroughly & clearly. There are some necessary changes required & hence I was trying to understand the concepts clearly.
Thank you for your time & coordination. Trust me it genuinely helped.
From India, Ahmedabad
I am aware about the ESIC clause mentioned by you & also that CL / SL cannot be encashed. Basically I was trying to point out the fact that according to Shop Act should it be okay if there are no bifurcation in leaves.
T.Sivasankaran has nicely put across the point & explained the same; thoroughly & clearly. There are some necessary changes required & hence I was trying to understand the concepts clearly.
Thank you for your time & coordination. Trust me it genuinely helped.
From India, Ahmedabad
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg