We have accumulated 45 Previlage leave of our employees now we want to encashment all previllage leave is it possible as per the shops and Establishment Act and Factories Act ?
From United States
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1From United States
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I have no idea as to which state's Shops & Estt Act applies to your establishment. However, I am sure that annual encashment of Privilege Leave or Leave with Wages in lieu of avail has not been provided for either in the State's Shops & Estt. Act (other than Tamil Nadu - I am not sure) or the Factories Act, 1948 except in the event of termination of the employee's services. Moreover, the maximum number of days of such leave that can be accumulated is limited to 24 in the former (in Tamil Nadu) and 30 in the latter. However, by virtue of the operation of the provisions of Sec.78 of the Factories Act, better terms in this regard under any other law or award, settlement, or contract of employment are permissible. Periodical or annual encashment of such leave can be considered more beneficial to both the employer and the employees. It is advisable to arrive at a bilateral settlement in this regard under Section 18(1) of the Industrial Disputes Act, 1947.
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From India, Salem
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From India, Salem
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First of all let us know whether your company comes under Factories Act or under Shops & Establishment Act, which state your company belongs too so as to give views
From India, Ahmadabad
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From India, Ahmadabad
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We are In Gujarat and have two different location one applicable Factory Act, 1948 and one is in Ahmedabad Shops & Establishment.
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Leave Encashment Under the Bombay Shops and Establishment Act
As per the Bombay Shops and Establishment Act of 1948, employees can have their leave encashed at the time of retirement or resigning from the job, based on the accumulated leave as outlined in Section 35.
Mr. Umakanthan mentioned that there is no provision for encashment written in the Factories Act.
From India, Ahmadabad
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As per the Bombay Shops and Establishment Act of 1948, employees can have their leave encashed at the time of retirement or resigning from the job, based on the accumulated leave as outlined in Section 35.
Mr. Umakanthan mentioned that there is no provision for encashment written in the Factories Act.
From India, Ahmadabad
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg