I need some info about Earned Leaves encashment. One of my employees has resigned and running a notice period (before completion of 1 year; resigned in 11th month): is he eligible to encash his ELs in FnF? If yes then also share labour law act number with a link so that we can share it with management.
someone is saying only after completion of 12 months an employee will be eligible to get encashment of ELs.

From India, Noida
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Madhu.T.K
Industrial Relations And Labour Laws
Saswatabanerjee
Partner - Risk Management

First of all, tell us which kind of organisation you represent?

If it is a factory kind of organisation, obviously, for the period of 11 months he has worked, he will earn leave at the rate of one day for every 20 days physically present in the preceding 11 months and the amount equal to that should be paid to him along with his F&F. One more thing to be noted is that he will become eligible to earned leave only if he has worked for at least 220 days in the 11 months. or deciding this eligibility take the holidays and weekly off days days for which he was paid salary. If he was given lay off during this period, that will also qualify for the eligible period. But the number of leave he earns is strictly based on the days he was physically present for work.

Similar provisions are available in Mines Act or Plantation Labour Act.

In case of commercial establishment like IT firm, media etc, you have to refer the state Act on Shops and Commercial Establishments. Mostly it will be like, earned leave is due after 12 months of service. Hence is he has worked only for 11 months, he will not get it.

From India, Kannur
As Madhu said, you need to look at the relevant labour laws.
Factory rules in most states provide for leaves to be accrued only on Jan 1 of the next year. Therefore, the period of 11 its self may not be of relevance

Please share the full details and the members will be able to give a better reply

From India, Mumbai
It is true that as per Factories Act earned leaves in respect of the preceding 12 months are credited in January. But in respect of employees who have joined during the year, the same shall be credited in January pro rata basis.
From India, Kannur
Dear Madhu,

What I meant is that if the person completes 11 months (say) in November, then he has nothing to his credit and encashment is not mandated by law. But if the 11 months gets over in September, then he would have had some leave in his credit from Jan and that would be encashed as per factory act.

The 11 months, by its self is of less significance in such a case.
I hope you agree

From India, Mumbai

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