Dear Friends,
Though this Earned Leave Encashment is being discussed at different times and forums still there is some difference of opinion.
Section 79 of The Factories Act, 1948 says that every employee who works for 240 days in the previous year is entitled to Earned leave @ 1 leave per 20 days of working.
When the worker is discharged or dismissed or quits employment, the unused earned leave at his credit has to be paid.
A worker is entitled to accumulate upto 30 days of earned leave and over and above 30 days will lapse.
Suppose, a person who is having earned leave at his credit more than allowable 30 days and has not taken leave nor organisation didnot allow him to take leave, then the additional leave is to be compensated or encashed? Is this the company policy or is it mandatory? This is not very clear in the Factories Act.
I invite our learned friends to post their views along with mandatory laws/rules (if any) for the benefit of HR people.
-Srinaren
Though this Earned Leave Encashment is being discussed at different times and forums still there is some difference of opinion.
Section 79 of The Factories Act, 1948 says that every employee who works for 240 days in the previous year is entitled to Earned leave @ 1 leave per 20 days of working.
When the worker is discharged or dismissed or quits employment, the unused earned leave at his credit has to be paid.
A worker is entitled to accumulate upto 30 days of earned leave and over and above 30 days will lapse.
Suppose, a person who is having earned leave at his credit more than allowable 30 days and has not taken leave nor organisation didnot allow him to take leave, then the additional leave is to be compensated or encashed? Is this the company policy or is it mandatory? This is not very clear in the Factories Act.
I invite our learned friends to post their views along with mandatory laws/rules (if any) for the benefit of HR people.
-Srinaren