pranay patil

Qu If employee is working for factory and office both then shop and establishment Act ( office in city location) or Factory act is applicable for Leave encashment ? or Company build up Leave policy will applicable as per law?
Qu: what is formula for leave encashment as shop and establishment Act or Factory act formula is different in Maharashtra ?

From India, Delhi
Labour Law & Hr Consultant
Pranay Patil
Manager Human Resources


When an employee is asked to work in various establishments belonging to the same organization, the leave rules of the establishment in whose roll the employee's name is originally mentioned would be applicable.
There is no statutory provision for leave encashment other than E.L that too only on termination of employment.

From India, Salem
poulami . k
Please help me with Leave policy-Casual Leave ,Earned Leave and Sick Leave for a new Manufacturing industry. I also need help to create the salary structure for the new company.
From India, Kolkata

Dear Poulami,

The term ' Company ' indicates the statutory form of a business entity's constitution only and not its nature of activity or business. In fact, such a company may be a composite organization in terms of its separable activities spread across different locations. In such a situation, the units of the same company would be covered by any of the establishment-specific labor laws depending on its predominent activity cum location like the Factories Act,1948 in respect of the manufacturing facility, State Shops and Establishments Act in respect of offices, retail outlets, godowns, the Sales Promotion Employees Act,1976 in respect of medical representatives employed by Pharma companies engaged in the manufacture and distribution of pharmaceuticals, the Working Journalists Act in respect of news paper employees and the like. These establishment-specific laws have different leave provisions in terms of types and scales.

Therefore, if you want to devise a uniform and overall leave policy for all employees of the Company, it would be a difficult task. Hence, my suggestion would be to formulate a unit-wise leave policy in accordance with the leave provisions of the respective establishment-specific labor law applicable to each such unit. For example, there is only one kind of leave viz., EL or annual leave with wages for the workers of the factory, three kinds of leave for shops and Establishments, sick leave with different scales to sales promotion employees.

Better carefully go through the leave provisions of the above laws, if they are applicable to your company before embarking upon the leave policy formulation exercise. If your top management is more emoyee-friendly, no bar in providing better leave benefits in terms of types and scales!

From India, Salem

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