Srinath Sai Ram
Hr Manager
+1 Other

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Dear Team, One of my employee is demanding PL encashment after completing 1 year of his relieving of company. As per our company policy employee cannot encash his balance PL at any cost neither he can use it against your notice period. Now he is threatening me with labor law.
I want to know that is it compulsory to encash Pl to managerial level employees as per Factory Act or shop and establishment act, if yes then in which section and act, my head office is in Mumbai, Please help.
Thanx & Regards,
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Any employee resigning or terminating his employment has to be settled with final dues and sent from the company, if that does not happen these points come up later which are painful and time consuming.
Moreover as you stated that the company policy is not allowing to encash,this should be reviewed as full & final settlement should include all dues.
As far as I am informed Managerial person cannot challenge the company on these grounds at Labour Court. Labour courts are appropriate forums for workmen category.
Thank You so much, It will really helpful information.
Dear HRD@BSTE, Being an Employer, you are not in a position to categorically State whether you are registered under The Factories Act/ Shops & Commercial Establishments Act?
Please Peruse relevant Acts in detail.Your Company Policy is not in Confirmity with The Factories Act/ Shops & Commercial Establishments Act? Relevant Laws will prevail over your Policy
The Factories Act/ Shops & Commercial Establishments Act Provides for Leave/leave Encashment to all Employees of the Organization.Even Managerial Personnel are also entitled for the benefits provided under the relevant laws
Department Of Labour/The Factories & Boilers Department-Appropriate Forum for adjudication of Non Payment of Leave Encashment
As per relevant laws, Leave Encashment is payable for Balance Leave at Credit consequent to resignation from Service
Dear Sir,
Is their any time limit after resignation for raising this kind of issue?
It is better HRD@BSTE to clear off the employee's due who has resigned.
All the statutory enactments are in favour of weaker section and shall bot support Managements which are the stronger segments in business/employee employer relation.
Regarding time limits,all are governed by Contracts Acts & Labour Enactments.
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