Loginmiraclelogistics
Asso.prof.(commerce & Management)
R.N.Khola
Labour Laws & Ir
Srinath Sai Ram
Hr Manager
+1 Other

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Please advise whether it is mandatory to pay EL in settlement for the workers who left the factory after working for 1 or 2 months.
From India, Erode
Hi John,
The entitlement of EL as per the Factories Act:
The Factories Act has provided annual/earned leave of 12 working days for all the workers who have worked at least 240 days in a year. However, the duration of earned/annual leave differs for the adult and young workers. ... If a worker takes four or more days' leave at a time, his wages are paid before the leave begins....
Since in your query, when the employee left after 1 or 2 months only for an eligibility to EL its short. Therefore no EL earned and as he already left there's no obligation of leave encashment also.

From India, Bangalore

Attached Files
File Type: pdf Factories Act-Sec.79-Leave.pdf (13.1 KB, 83 views)

Dear Member,
In my opinion, in this case worker will be entitled to EL in accordance with section 79(3) of Factories Act, 1948 which may be read as under.
Section 79(3) If a worker is discharged or dismissed from service or quits his employ­ment or is superannuated or dies while in service, during the course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his discharge, dismissal, quitting of employment, superannuation or death calculated at the rates specified in sub-section (1), even if he had not worked for the entire period specified in sub-section (1) or sub-section (2) making him eligible to avail of such leave, and such payment shall be made—
(i) where the worker is discharged or dismissed or quits employment, before the expiry of the second working day from the date of such discharge, dismissal or quitting; and
(ii) where the worker is superannuated or dies while in service, before the expiry of two months from the date of such superannuation or death.
R N LHOLA

From India, Delhi
Dear Mr John,
Any Employee who quits Job after working for more than 20 days is entitled for EL as enumerated in The Factories Act, 1948.However, entitlement of Leave will be on Pro rata basis i.2 1 day for Every 20 Days Worked.

From India, New Delhi
Dear colleagues,
We may consider relevant issues discussed in this link also before we could come to a conclusion -
https://www.citehr.com/589795-leave-...loyee-pg2.html

From India, Bangalore
He is entitled only if he fulfils the condition in sec 79(2) of the Factories Act.
From India, Thiruvananthapuram
Dear Members
Section 79 (3) of The Factories Act, 1948
If a worker is discharged or dismissed from service or
quits his employment or is superannuated or dies while in service,
during the course of the calendar year, he or his heir or nominee, as
the case may be, shall be entitled to wages in lieu of the quantum of
leave to which he was entitled immediately before his discharge,
dismissal, quitting of employment, superannuation or death calculated
at the rates specified in sub-section (1), even if he had not worked
for the entire period specified in sub-section (1) or sub-section (2)
making him eligible to avail of such leave, and such payment shall be made

From India, New Delhi
Dear Member, He is entitled for leave @ 1 day for 20 days working. Please also check your state rules framed in absence of company policy. Regards
From India, Mumbai
Please Login To Add Reply






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™