Hi, my office is in Gurgaon and falls under the Punjab Shops and Establishment Act. Currently, we have 18 EL, 7 CL, and 7 SL. The EL can be carried forward up to a year; however, CL and SL expire at the end of each year. We have no policy of adjusting leave against the notice period or leave encashment. I am looking to modify the policy to allow the accumulation of EL up to 60 days and permit SL to be carried forward up to a certain number. Please advise on how many days SL can be carried forward. Also, is there any applicable law? Can someone please share their leave policies?
Many thanks.
From India, New Delhi
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1Many thanks.
From India, New Delhi
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A worker is entitled to annual leave with wages at the rate of one day for every 20 days of work performed in the previous calendar year, provided that they have worked for 240 days or more in the previous calendar year. However, there is no specific law governing whether leaves can be carried forward or encashed; it varies from company to company. Each company decides the type of leave policy they will offer to their employees.
From India, Mumbai
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From India, Mumbai
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There is no such rule specifying how much leave can be carried forward, but the Factory Act has specified that the accumulation of earned leave (EL) should not exceed 30 days. However, you can increase the limit. It depends on the company whether they want to implement a policy for leave carry forward or encashment. If you want to carry forward all sick leave (SL), then the law will not object.
It is said that if any settlement provides better benefits than what is specified in the act, then that settlement applies there.
Regards,
Arun J.
From India, Hyderabad
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It is said that if any settlement provides better benefits than what is specified in the act, then that settlement applies there.
Regards,
Arun J.
From India, Hyderabad
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Please read the Punjab Shops and Establishment Act thoroughly to help you find your query. Below is Section 14, which answers your query:
14. Leave
(a) Every employee who has been in employment for not less than twenty days in a year shall be entitled to one day's earned leave for every such twenty days:
Provided that a young person shall be entitled to one day's earned leave for every fifteen days of employment during the year.
(b) If an employee is discharged or dismissed from or leaves service during the course of the year, he shall be entitled to leave with wages or wage in lieu of un-availed leave at the rates laid down in clause (a).
(c) In calculating leave under this section, a fraction of half a day or more shall be treated as one day's leave, and a fraction of less than half a day shall be ignored.
(d) If an employee does not, in any one year, take the whole of the leave allowed to him under clause (a), any leave not taken by him shall be added to the leave to be allowed to him in the succeeding year:
Provided that—
(i) Subject to any specific agreement between the employer and the employee, the total number of days of leave that may be carried forward to a succeeding year shall not exceed forty in the case of a young person or thirty in any other case;
(ii) The provisions of this section shall not operate to the prejudice of any rights to which an employee may be entitled under any other law or under the terms of any award, agreement, or contract of service;
(iii) Where such award, agreement, or contract of service provides for longer leave with wages or weekly holidays than those provided under this section, the employee shall be entitled to only such longer leave or weekly holidays as the case may be.
(2) Leave period in clause (a) of sub-section (1) shall, when applied for, be granted except for a valid reason to be communicated in writing by the employer to the employee within fifteen days of the application:
Provided that the leave so refused shall, if applied for again, be allowed during the year.
(3) (a) For the purpose of computing the period during which an employee has been in employment within the meaning of sub-section (1) (a), the period during which he was on leave under this section and the off days in a week referred to in section 11 shall be included.
(b) The un-availed leave of an employee shall not be taken into consideration in computing the period of any notice required to be given before discharge, removal, or dismissal.
(4) Notwithstanding anything contained in the foregoing sub-section, every employee in an establishment shall be allowed with wages seven days casual leave and seven days sick leave in a year.
From India, Ahmadabad
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14. Leave
(a) Every employee who has been in employment for not less than twenty days in a year shall be entitled to one day's earned leave for every such twenty days:
Provided that a young person shall be entitled to one day's earned leave for every fifteen days of employment during the year.
(b) If an employee is discharged or dismissed from or leaves service during the course of the year, he shall be entitled to leave with wages or wage in lieu of un-availed leave at the rates laid down in clause (a).
(c) In calculating leave under this section, a fraction of half a day or more shall be treated as one day's leave, and a fraction of less than half a day shall be ignored.
(d) If an employee does not, in any one year, take the whole of the leave allowed to him under clause (a), any leave not taken by him shall be added to the leave to be allowed to him in the succeeding year:
Provided that—
(i) Subject to any specific agreement between the employer and the employee, the total number of days of leave that may be carried forward to a succeeding year shall not exceed forty in the case of a young person or thirty in any other case;
(ii) The provisions of this section shall not operate to the prejudice of any rights to which an employee may be entitled under any other law or under the terms of any award, agreement, or contract of service;
(iii) Where such award, agreement, or contract of service provides for longer leave with wages or weekly holidays than those provided under this section, the employee shall be entitled to only such longer leave or weekly holidays as the case may be.
(2) Leave period in clause (a) of sub-section (1) shall, when applied for, be granted except for a valid reason to be communicated in writing by the employer to the employee within fifteen days of the application:
Provided that the leave so refused shall, if applied for again, be allowed during the year.
(3) (a) For the purpose of computing the period during which an employee has been in employment within the meaning of sub-section (1) (a), the period during which he was on leave under this section and the off days in a week referred to in section 11 shall be included.
(b) The un-availed leave of an employee shall not be taken into consideration in computing the period of any notice required to be given before discharge, removal, or dismissal.
(4) Notwithstanding anything contained in the foregoing sub-section, every employee in an establishment shall be allowed with wages seven days casual leave and seven days sick leave in a year.
From India, Ahmadabad
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