Dear all,
Pls. update me whether an employee is entitle to encashment of Privilege leave as per Delhi Shops & Establishment Act under probation period. As per my knowledge an employee is entitled to PL in case he has served for a period over & above 4 months. It would not matter whether he is in probation or not.Therefore at the time of him leaving the organisation an organisation must encash his PL in full & final settlement.Kindly update if i am wrong or right? pls. also attach some legal case finding or some acts which supports the same.
Awaiting earnest inputs & knowledge enrichment from fellow members & experts
Thanks & Regards
C.M.Mohla
From India, Delhi
Pls. update me whether an employee is entitle to encashment of Privilege leave as per Delhi Shops & Establishment Act under probation period. As per my knowledge an employee is entitled to PL in case he has served for a period over & above 4 months. It would not matter whether he is in probation or not.Therefore at the time of him leaving the organisation an organisation must encash his PL in full & final settlement.Kindly update if i am wrong or right? pls. also attach some legal case finding or some acts which supports the same.
Awaiting earnest inputs & knowledge enrichment from fellow members & experts
Thanks & Regards
C.M.Mohla
From India, Delhi
Normally encashment is permitted at the time of discharge or when the employee leaves after resigning from the company. However, if there has been accumulated balance of PL beyond which no further accumulation is permitted, any addition to the PL shall be encashed. In no circumstance, an employee can demand encashment of PL in four or six months period. It is true that under Delhi Act there is a provision that an employee who has served for 4 months shall get 5 days. But this doesnot mean that immediately after getting the leaves credited he can en cash the same.
Madhu.T.K
From India, Kannur
4193Madhu.T.K
From India, Kannur
Dear Sir,
Thanks for your interest & earnest response.But still i am not clear whether after his resignation an employee can demand EL encashment in full & final especially when he is under probation period where he is not supposed to serve notice period.
Is there any law / case which can support it in court.
Looking forward for kind updation.
Warm Regards
C.M.Mohla
From India, Delhi
Thanks for your interest & earnest response.But still i am not clear whether after his resignation an employee can demand EL encashment in full & final especially when he is under probation period where he is not supposed to serve notice period.
Is there any law / case which can support it in court.
Looking forward for kind updation.
Warm Regards
C.M.Mohla
From India, Delhi
The relief that a person is entitled to, is generally credited to his account at the end of the year. For a person who is in probation, I assume he has not completed the year. In that case he will not be entitled to the leave or its encashment
From India, Mumbai
From India, Mumbai
Who decides probation period? The employer only says that for every new employee there will be a probation period. And that probation period depends on demand for and supply of labour. That is why we fix lesser period for a person whose supply is very limited, the employment of whom is every much needed considering the requirement of the company and fix a longer probation period for a clerk or labour who can be recruited without difficulties. That means there is no legal sanctity to the term probation though there has been some understanding from various courts that termination of employment during probation period cannot be questioned. But at the same time there has been clear instructions that if that probationer whose services are terminated has been in service for at least one year, compensation as prescribed u/s 25F of the ID Act should be paid to him. In such cases, probationer and confirmed employee are one and the same.
As regards leave encashment, what the law states is that an employee should be given encashment at the time of his leaving the organisation. The law is silent as to whether the employee should be confirmed or not. That means if you have earned PL by working for a certain number of months, you can encash it when you leave the organisation even if you are not confirmed. Therefore, if you have a probationer who has been working with you for the last 12 months and thereby has earned 15 days' PL, he should be given that PL once he leaves. He should not be denied PL only n the ground that he is still under probation.
Madhu.T.K
From India, Kannur
As regards leave encashment, what the law states is that an employee should be given encashment at the time of his leaving the organisation. The law is silent as to whether the employee should be confirmed or not. That means if you have earned PL by working for a certain number of months, you can encash it when you leave the organisation even if you are not confirmed. Therefore, if you have a probationer who has been working with you for the last 12 months and thereby has earned 15 days' PL, he should be given that PL once he leaves. He should not be denied PL only n the ground that he is still under probation.
Madhu.T.K
From India, Kannur
Dear Sir,
This means that if an employee whether confirmed or under probation is entitled to encashment of Privledge leave at the time of his full & final in accordance with his employment period over & above four months. Pls. correct me if i am wrong?
Thanks & Regards
C.M.Mohla
From India, Delhi
This means that if an employee whether confirmed or under probation is entitled to encashment of Privledge leave at the time of his full & final in accordance with his employment period over & above four months. Pls. correct me if i am wrong?
Thanks & Regards
C.M.Mohla
From India, Delhi
The provision of granting leave in four months' service is not available in all the State Acts but it is there in the Delhi Shops and Commercial Establishments Act. But if you refer sub section 2 of section 22 which tells about encashment or payment of wages for un utilised leave at the time of discharge of an employee, you will find that this is available only to those who leave after 12 months of continuous service. Let us go through section 22 for better understanding.
Section 22- Leave
(1) Every person employed in an establishment shall be entitled :
(a) after every twelve months', continuous employment, to privilege leave for a total period of not less than fifteen days;
(b) in every year, to sickness or casual leave for a total period of not less than twelve days;
Provided that
(i) an employee who has completed a period of four months in continuous employment, shall be entitled to not less than five days privilege leave for every such completed period; and
(ii) an employee who has completed a period of one month in continuous employment, shall be entitled to not less than one day's casual leave for every month.
provided further that........
(2) If an employee entitled to leave under clause (a) of sub-section (1) of this section 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 full wages for the period of leave due to him.
Please read the above sub section which clearly says that encashment is open only to employee described under clause (a) of sub section 1. At the same time the matter relating to accrual of leave for an employee serving four months is given in clause (b). Having said that those having worked for 12 months and thereby earned 15 days PL would only be given wages equal to leave not availed at the time of discharge.
Hope this would clarify the doubts.
Madhu.T.K
From India, Kannur
Section 22- Leave
(1) Every person employed in an establishment shall be entitled :
(a) after every twelve months', continuous employment, to privilege leave for a total period of not less than fifteen days;
(b) in every year, to sickness or casual leave for a total period of not less than twelve days;
Provided that
(i) an employee who has completed a period of four months in continuous employment, shall be entitled to not less than five days privilege leave for every such completed period; and
(ii) an employee who has completed a period of one month in continuous employment, shall be entitled to not less than one day's casual leave for every month.
provided further that........
(2) If an employee entitled to leave under clause (a) of sub-section (1) of this section 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 full wages for the period of leave due to him.
Please read the above sub section which clearly says that encashment is open only to employee described under clause (a) of sub section 1. At the same time the matter relating to accrual of leave for an employee serving four months is given in clause (b). Having said that those having worked for 12 months and thereby earned 15 days PL would only be given wages equal to leave not availed at the time of discharge.
Hope this would clarify the doubts.
Madhu.T.K
From India, Kannur
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