Anonymous
1

Hi All,
Need your help to know about Earn leave encashment in Full and final calculation as per Mumbai shops & establishment act.
Earn Leave enchashment is calculated on current (last drawn) basic +DA or on Gross salary per month. In Factory's act 1948 sec. 80 it is stated as rate equal to daily average of his full time earning. Please guide.
Thanks,
Kshitija

From India, Mumbai
Dear Kshitija,
As per Shops & establishment act for mumbai you can encash earned leaves on Basic + DA. Some companies to extend an facility to the employees to encash it on gross. But this is completely Management call.


Kshitija,
As per section 36 of the act the payment should be made on gross wages. The section is reproduced here.
36. Pay during leave.-Every employee shall be paid for the period of his leave at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of overtime.
Manoj, you stand corrected.

From India, Mumbai
Hi kindly confirm if there is any minimum number of earned leaves that can be en-cashed by an employee at the time of separation. I am referring to a company based in Karnataka.
Kindly also confirm which act should we refer to while working on encashment of earned leaves.
Thanks,
Chandramukhi

From India, Bengaluru

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