Kapoorrr
Advisor(hr)
Suresh2511
Labour Consultant
+1 Other

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Hi
Being a part of industry , we must know the latest rules and notifications of Government . It is our pleasure to share a latest Gazette Notification on Hazardous Waste Management -2016 for your kind knowledge and update.
Queries are invited to -

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File Type: pdf Final HWM Rules 2016 (English).pdf (661.9 KB, 445 views)

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Under the Factories Act, there is a provision for encashment of balance leave at the tme when an employee quits for whatsoever reason. However, the staff who receives salary on 30 days basis, the leave encashment is calculated by dividing last basic salary plus DA,if any, by 30 days and multiplied by the no. of days leave balance. However, I have observed many industries in Gujarat, the leave encashment to staff is also calculated by dividing basic salary by 26 days and not 30 days. Though the Act is silent on the methodology of calculation of leave ensashment, yet it is practiced as per the provisions of Gratuity Act where the gratuity is calculated by dividing basic salary by 26 days multiplied by no. of days.In this context, I would like to have the comments/opinion of the experts and if they can share any case law to show that the leave encashment of leave is calculated by 26 days and not 30 days.
R R Kapoor
Emami Cement Ltd
Dear Kapoorrr ji,
If your Company is giving you leave strictly as per Factories Act i.e. 1 day leave for every 20 working days than you should get leave encashment by dividing 26 to your monthly salary. (Basic + D.A.). However, if you are getting leave more than 20 days then the divisor of 30 days is justified (300/20=15 + 5 WO=20 days)
There are Companies who gives encashment on entire salary, some companies by deducting few components and rest are giving on Basic & D.A. only.
There is no case law for computation of leave encashment.
As per industry practice for monthly paid employees the divisor is generally considered 30 days and for daily wages there is no confusion it is straight way multiply by no. of days x daily wage.
If your company is giving only the Minimum Wages to the employees converted into monthly salary, you have all rights to argue for divisor by 26.
Regds,
Suresh
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