I am working in a manufacturing Industry in Madhya pradesh. I prepared leave and encashment rules, on which my seniors told me that they will not give facility of leave accumulation and also will not do leave encashment. I tried to find out the rule in factory act and M.P. factory act which says that leave accumulation and encashment is mandatory, but i couldn't. Also they are adamant on giving leaves at the rate of two per month as total leaves, which is not divided into sick/medical, casual and earned leave. please guide me. Can anyone help me with the rule according to M.P. factory act.
From India, Indore
KK!HR
1011

The substantive provision regarding Annual Leave is provided in Sections 79-82 of the Factories Act1948 which provides for accumulation of leave as well as encashment. The senior management of the company can refuse to comply with the mandatory requirement only at its peril. MP Factory Rules1962 provides the format and other conditions. In addition to Factories Act, the provision of Casual Leave (7 days/year) is provided in Standard Standing Orders. Pl consult them, net copy is available.
From India, Mumbai
Thanks for your reply, but as far as my information goes, Factory act is not applicable in M.P. as in our state M.P. factory act is applicable. Please suggest accordingly. And correct me i am wrong.
Regards,
Ria

From India, Indore
KK!HR
1011

To clarify the doubt, the Factories Act is a central legislation and is applied uniformly throughout the country by the respective state governments. There are state rules which elaborate on how the Act is to be applied. So there is no MP Factories Act, but there is MP Factory Rules. You may consult the Act/Rules accordingly, both are available on net.
From India, Mumbai

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