Standing Order Act For Leave Encashment

Thanks to all seniors and fellow members for your valuable feedbacks........

I am making a bit clear about the issue.

The construction of the plant started 4 years back. There are no such written commitments or any agreement for this money distribution. While signing the MOU the company has agreed to provide job facility only to land losers (no. is 800), by giving them training according to their skills, but after the operation start. Our company distributing this money for the sake of smooth flow of work and include it as a CSR activity. The villagers sometimes demand s to engage them in some work, but as our plant is now at construction phase and there are no skilled people in villages, we couldn’t able to engage all of them. But around 150 villagers are working as drivers & helper in our equipment division. The amount we are paying are more than as per the govt. prescribed rates and we maintaining wages sheets, deducting PF, paid bonus twice and once paid the exgratia. The plant is located in a very sensitive area. The people here are more aggressive for the sake of money. We had faced many strikes in these 4 years of work. Now they are demanding for the leave encashment along with some other demands.

If you are maintaining wage registers for them, then they are employees in the legal sense.
Technically then they are on duty.
You should have recoded their off days asked people to take leave :)
I think you need to take the help of the labour officer or the district magistrate to work this through. It's not a case of requirement of law but a strategic decision with severe IR implications
I hope your drivers, etc have been getting their paid leaves, etc

As i understand the case that these 2200 people are not working at the factory. so the payment is not a wage. in law there is no recommendation for leave encashment. according to law every employee shall be send on leave, it is compulsory. So the people are not working how they can demand for earned leave. In this case it will be better to take help of local administration and if possible solve the problem through thier community leaders. If it will not be solved then they can demand for other benefits too, like personal loan provident fund, gratuity etc