Dear fraternity,
One of our employees has worked at our factory till today. Due to management issues, we have asked him to leave. But he is claiming to give the EL encashment for the year 2024 as he has worked to date. Please advise whether an employee is eligible to pay the EL.
Regards
Hanumanth.
From India, Jajpur
One of our employees has worked at our factory till today. Due to management issues, we have asked him to leave. But he is claiming to give the EL encashment for the year 2024 as he has worked to date. Please advise whether an employee is eligible to pay the EL.
Regards
Hanumanth.
From India, Jajpur
Hi, Whatever EL balance till date of reliving to be encashed and employee is eligible for EL encashment.
From India, Madras
956From India, Madras
Thanks for your reply. He is claiming that he will be eligible for 2024 EL encashment also as he is worked till December 24. Means he will get EL in January 25. Please clarify. Regards Hanumanth.
From India, Jajpur
From India, Jajpur
Hi, Only EL balance as on relieving date alone should be considered for encasement
From India, Madras
From India, Madras
the outgoing employee is entitled to get encashment or leave with wages for the EL he has to his credit till the date of his leaving.
From India, undefined
From India, undefined
what is the management issue on which ground you are getting your employee out??
From India, undefined
From India, undefined
This point was discussed in another post earlier.
Factory act wording is very clear.
The employee is entitled to encashment of leaves to his credit at the time of separation.
Further, he is entitled to leave that would be due but for the fact that he is being terminated.
Thus, he will be eligible for proportionate days of EL for the days worked in 2024 also.
"Sec 79 (11) If the employment of a worker who is entitled to leave under sub-section (1) or sub-section (2), as the case may be, is terminated by the occupier 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 worker quits his employment, before he has taken the leave, the occupier of the factory shall pay him the amount payable under section 80 in respect of the leave not taken, and such payment shall be made, where the employment of the worker is terminated by the occupier, before the expiry of the second working day after such termination, and where a worker who quits his employment, on or before the next pay day.
(12) The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.]"
Also please see : 79(3)
(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.]
From India, Mumbai
Factory act wording is very clear.
The employee is entitled to encashment of leaves to his credit at the time of separation.
Further, he is entitled to leave that would be due but for the fact that he is being terminated.
Thus, he will be eligible for proportionate days of EL for the days worked in 2024 also.
"Sec 79 (11) If the employment of a worker who is entitled to leave under sub-section (1) or sub-section (2), as the case may be, is terminated by the occupier 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 worker quits his employment, before he has taken the leave, the occupier of the factory shall pay him the amount payable under section 80 in respect of the leave not taken, and such payment shall be made, where the employment of the worker is terminated by the occupier, before the expiry of the second working day after such termination, and where a worker who quits his employment, on or before the next pay day.
(12) The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.]"
Also please see : 79(3)
(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.]
From India, Mumbai
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Karnataka Leave.xlsx
LEAVE APPLICATION.doc