jjx7449
Hello folks,
I recently left an IT firm and during F&F got to know that they are not providing Leave Encashment for my earned leaves
The Amount if processed should be somewhere close to 50k INR.
Can someone please help me know if Leave Encashment is a mandate or totally depends on organization if they wish to offer or not.

From India, Ranchi
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Umakanthan53
Labour Law & Hr Consultant
Saswatabanerjee
Partner - Risk Management
Jjx7449
Engineer

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umakanthan53
5943

IT and ITES establishments are covered under the respective State Shops and Establishments Act. If you fall within the definition of the term " person employed " or " employee " as defined under the Act of your State, you are eligible for earned leave or privilege leave the unavailed portion of which can be accumulated to a certain ceiling prescribed in the law. The encashment of this leave forms part of the terminal benefit of employment whenever it takes place for whatever reasons.
If the employer refuses to pay, you can make a complaint to the area Deputy Labor Commissioner.

From India, Salem
saswatabanerjee
2355

The reply by Mr. Umakantha is correct.
The Jharkhand Shop & Establishment Act says as below :

Sec 16(9) : If the employment of an employee who is entitled to leave under sub-section (1) or sub-section (2), as the case may be, is terminated by the employer before he has taken the entire leave to which he is entitled or if, having applied for and having not been granted such leave, he quits his employment before he has taken the leave, the employer shall pay him the amount payable under section 17 in respect of the leave not taken, and such payment shall be made before the expiry of the second working day after the day on which his employment is terminated and to an employee who quits his employment on or before the next pay day.

The rules applies to IT personnel as much as other employees.
Unfortunately, you have not provided key information needed for a more accurate reply. We are even guessing the office was in Ranchi

From India, Mumbai
jjx7449
@Saswatabanerjee @Umakanthan53
Thanks a lot for your replies, I forgot to add about location since I thought Labour Laws are central.
My company is registered in Bangalore which will be Karnataka, Could you please help me know if Leave Encashment during the time I leave is mandatory or not as per the act there?

From India, Ranchi
jjx7449
Hello Folks,

I referred the link below for Karnataka shops and Establishment Act
https://www.indiacode.nic.in/bitstre...62_%28e%29.pdf

On page 21 and 22 end it says

) If the employment of an employee who is entitled to leave under
sub-section (1) 1
[x x x]1
is terminated by the employer before he has taken
the entire leave to which he is entitled or if having applied for and having not
been granted such leave, the employee quits his employment before he has
taken the leave, the employer shall pay him the amount payable under
section 16 in respect of the leave not taken, and such payment shall be
made, where the employment of the employee is terminated by the
employer, before the expiry of the second working day after such
termination, and where an employee quits his employment, on or before the
next pay day.

Does this confirm that Karnataka Shop and Establishment Act also mentions that I should be paid Leave Encashment without a fail ? Your help is highly appreciated

From India, Ranchi
umakanthan53
5943

Dear friend,

This reply is in response to the query you raised in your private message also.

In India, all manufacturing activities are covered by the Factories Act,1948 which deals with the working conditions of workers employed therein inter alia other aspects. In respect of shops and other commercial establishments, almost all States have their own shops and establishments pertaining to the conditions of employment and other aspects.

Each and every business entity engaged in one or more predominant activities like buying or selling of goods, providing services like financial transactions, advertising, forwarding, public amusements, boarding and/or lodging to the general public or customers or any other establishment notified by the Government as such situated within the territory of an Indian State would be an establishment under the particular State's Shops and Establishments Act. It would automatically imply that in respect of an establishment registered in a particular State and having branches in other States, different Shops and Establishments Acts would apply depending on each such unit's geographical location. However, there can be variations in the extent of service conditions among the various State Acts on the same subject. This multiplicity of statutory application fastens the compulsion of devising uniform rules pertaining to service conditions on establishments having pan-India presence. Though the Central Government has brought in the Model Shops and Establishments (Conditions of Employment ) Rules,2016, its adoption is left to the choice of the States.

Coming to your query, whether you were employed in Karnataka State or elsewhere at the time of your termination of employment, Your employer has to pay you the salary for the entire earned/privilege leave at your credit on that date.

From India, Salem
jjx7449
Hello Mr. Umakanthan.M<

Thanks for your detailed Reply,
I have already emailed by employer but they are not agreeing saying that Internal Company policy doesnt allow that.

Thats why I wanted to send them an email which points out the exact legislation which they come under so that they cant beat around the bush. I am fine with sharing the name of the company over private message with you, so that you can check under which act they fall into.
And even after pointing out the exact legal binding they have, they don't agree to it, I would raise a grievance with the channels possible.

Your help all throughout is highly appreciated.

From India, Ranchi
jjx7449
Adding to few more things

Company's Registered Address is in Bangalore (the address which used to appear on payslip)
I was employed at Bangalore Location, but was working from home due to Pandemic
I joined the company in September and Left in December and 8 days of leave were accumulated.

From India, Ranchi
vijay rakesh
1

Is Leave Encashment Mandatory Under Labour Laws For IT Professionals ? I think you will get your answers but one important thing we should have to know The Post you held.... if it is managerial or like that capacity then the policy of the company is implimented .
From India, Jamshedpur
saswatabanerjee
2355

It is nice to think you can raise disputes to send a legal notice.
However, you have only 8 days of accumulated leave. What is it worth?

I hope you realise you need to come back to them for Background verification...

From India, Mumbai

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