Umakanthan53
Labour Law & Hr Consultant
+1 Other

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The section 79(3) says that EL should be paid at 1 day for every 20 days worked. Then is the use of saying 240 days condition in subsection 1 and 2/3 days condition in subsection 2. They could have simply had added that everyone can get 1 EL on 20 working days. So please clarify whether an employee is eligible for 5 days EL who quits after working for 91 days.
From India, Mumbai
Dear Prakash,

Section 79 of the FA, 1948 is a wholesome section dealing with the concept of Annual Leave With Wages for the workers under the Act. As such we have to understand that it has got different provisions under its various sub sections dealing with different aspects or situations pertaining to this particular kind of leave.

Sec.79(1) deals with the minimum no of days worked in a calendar year to earn the
leave and the rate of its calculation based on the no of days days worked and when the leave could be normally availed by the incumbent.

Sec.79(2) speaks about the entitlement in case of commencement of service of a worker on any day other than the first day of January in the calendar year and its calculation.

Sec.79(3) exclusively deals with the calculation and payment of wages in lieu of the leave at credit of a worker under the circumstances of termination of his employment during the course of any calendar year due to discharge, dismissal, resignation, superannuation or death.

If we make a combined reading of sub-sections (1) & (2) of sec.79, the employee who quits employment just after 91 days of service does not have the entitlement to earn the leave at all and no need for encashment of leave on his termination of employment.

From India, Salem
If 91 days is 2/3 of the days from his joining to the end of calendar year,he is eligible,as per sec 79 (2).
From India, Thiruvananthapuram
Umakanthan sir, thanks for your clarification, but still don't understand why it's mentioned in section 79(3) 'even if they had not worked for the entire period mentioned in sub section 1&2 el shall be paid at the rate mentioned in the beginning of the section'. Please clarify this one point for which I will be very grateful to you.
From India, Mumbai
thanks for your clarification, but still don't understand why it's mentioned in section 79(3) 'even if they had not worked for the entire period mentioned in sub section 1&2 EL shall be paid at the rate mentioned in the beginning of the section'. Please clarify this one point for which I will be very grateful to you.
From India, Mumbai
Dear Prakash,
This is just to amplify the clarification given by Learned Mr. Umakanthan.
Let me put it succinctly as below:
Section 79(1) refers to the eligibility norms for those employees who are already in service from the beginning of the calendar year whilst section 79(2) refers to those employees who join in the middle of the calendar year and are continuing in service till end of that calendar year ,
Therefore those regular workmen who leave the services on their own like resignation even after putting in an attendance of 239 days in the calendar year in which he is leaving the services (i.e resignation ) are not entitled to annual leave with wages .
Therefore an employee who resigns after 91 days of service in a calendar year is not entitled to earn leave and hence the question of encashment does not arise
Panchsen
P.Senthilkumar

9884009193

From India, Chennai
Mr.Varghesemathew, Can you pl explain your proposition?
From India, Salem
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