How Do We Calculate Annual Leave for a Suspended Worker Under the Factories Act?

We suspended a worker in January 2008, later issued a chargesheet, and conducted a domestic enquiry. Finally, his services were terminated on November 29, 2008. My query is how we will calculate his annual leave during the suspension period. Will he be eligible for annual leave for the suspension period for encashment during full and final settlement? We are a factory, and all leaves are given as per the Factories Act.

Thanks,
J.S. Malik

You took 11 months to complete the inquiry?

Since he has not been reinstated, no annual leave will accrue in his case. Leave under the Factories Act is earned only when he works. Since he has not worked, he is not eligible for earned leave. However, any leave in his credit (balance) shall be paid to him.

Regards, Madhu.T.K

Dear Madhu,

When an establishment comes under the Shop & Establishment Act, the same procedure should be followed. Could you please explain if there is something different to consider?

Regards,
Ranjeet

Under the Shops and Establishments Act, leave is credited only based on the actual days worked in the preceding year.

Regards,
Madhu.T.K