#Anonymous

Hi,
one of our staff is working with us from last 9months but his probation period was extended due to performance issue.
now he put-up the resignation and we need to pay him full & final settlement.
during the probation period he was eligible for Cl-1(casual leave) in a month and he availed the same.
as per company policy we are giving all leaves from DOJ as per pro-rata basis but employee can use only CL during the probation period and other leaves after confirmation only.
as he was under probation period his EL -10in balance at the time of resignation.
kindly advise as per Tamilnadu shop act do we need to make leave encashment in f&f or not.
12th March 2019 From India, Chennai
As per Tamil Nadu Shops Act, the person mentioned here is not entitled to Earned Leave.
" Every person employed in any establishment shall be entitled, after twelve months continuous service, to holidays with wages for a period of 12 days, in the subsequent period of twelve months: provided that such holidays with wages may be accumulated up to a maximum of twenty- four days."
However the second clause is also relevant in this case
" Every person employed in any establishment shall also be entitled during his first twelve months of continuous service after the commencement of this Act, and during every subsequent twelve
months of such service
(a) to leave with wages for a period not exceeding twelve days, on the ground of any sickness incurred or accident sustained by him and
(b) to casual leave with wages for a period not exceeding twelve days on any reasonable ground."
So if you have already credited EL,SL,CL etc to the employee, the following clauses are applicable
(3) If a person entitled to any holidays under sub- section (1) is discharged by his employer before he has been allowed the holidays, or if having applied for and been refused the holidays, he quits his employment before he has been allowed the holidays, the employer shall pay him the amount
payable under this act in respect of the holidays.
(4) If a person entitled to any leave under sub- section (2) is discharged by his employer when he is sick of suffering from the result of an accident, the employer shall pay him the amount payable under this act in respect of the period of the leave to which he was entitled at the time of his discharge, in addition to the amount, if any payable to him under sub- section (3).
Courtesy : https://www.stacowiki.in/en/acts/st-...lishments-act/
12th March 2019 From India, Bangalore
Hello,
The candidate is not eligible to get leave encashment, as he is not confirmed yet in organisation. Also according to me, CL are not comes into encashment, only PL and ELs are. You can refer you policy as well, if you have mentioned about encashment of CL at the time of FnF then you should provide him his amount of leaves.
Thanks
12th March 2019 From India, Delhi
I have not dealt with Tamilnadu Shops Act .However, please refer to sub-clause (3) of the relevant section reproduced by Consultme above. It states that an employee on being discharged or quitting employment, shall be paid the amount payable under the Act (probably referring to leave wages) if he is not allowed to avail the holidays before he so quits which i understand that the employee is allowed encashment of EL at his credit at the time of quitting employment.
So go through the relevant section of the Shops Act.
Views invited from HR professionals dealing with Tamilnadu Shops Act.
B.Saikumar
HR & Labour relations Consultant
13th March 2019 From India, Mumbai
Hi,
In our company Basic is divided into Basic, DA and Grade Pay so if leave encashment is done it should be done on Basic + DA or Grade Pay is to be added.
Please guide.
14th March 2019 From India, Vadodara
Normally your leave policy shall state as to what components of salary shall count for leave encashment. In the absence of it, you need to be guided by the Shops Act of your State or the Factories Act depending up on the character of your establishment being a commercial establishment or a manufacturing concern(factory). However the normal practice is that the same wages which an employee is paid while on leave, will also be paid at the time of leave encashment which in other words means basic + all other allowances except OT or bonus.Any how it is advisable to refer to the relevant provision in your Shops Act.
B.Saikumar
HR & Labour relations Consultant
14th March 2019 From India, Mumbai
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