Is This Worker Entitled to Leave Wages After Resignation? Let's Discuss

Would like to have a solution to this problem?

An adult worker was employed in a factory on 2.7.2004. He worked for 130 days in 2004, 229 days in 2005, 236 days in 2006, and 45 days in 2007. He enjoyed leave with wages under the Factories Act 1948 for 5 days in 2005. He was laid off for 21 days in 2006, and he resigned on 1.3.2007. Is the worker entitled to wages in lieu of leave on resignation? If so, how many days?

Please support your answers with a reasonable explanation.

Regards

As per the Factories Act, every worker is entitled to 1 day of Earned Leave (EL) for every 20 days worked. They are eligible for EL and need to be paid during settlement.

Would you like to have a solution to this problem? An adult worker was employed in a factory on 2.7.2004. He worked for 130 days in 2004, 229 days in 2005, 236 days in 2006, and 45 days in 2007. He enjoyed leave with wages under the Factories Act 1948 for 5 days in 2005. He was laid off for 21 days in 2006, and he resigned on 1.3.2007. Is the worker entitled to wages in lieu of leave on resignation?

Earned Leave Entitlement Calculation

The person is eligible to be entitled to 18 Earned Leaves in total.

- 2004: 5 Earned Leaves for every 20 days worked
- 2005: 0 Earned Leaves due to insufficient working days
- 2006: 10 Layoff days, but 21 working days, making 236 total days eligible for calculation
- 2007: 3 Earned Leaves for a total of 60 working days

In total, the person has 18 Earned Leaves eligible for use.

Eligibility for Leave with Wages

The person is eligible for 17 days of leave with wages.

In 2004, there were 130 working days, which equates to 130/20 = 6.5, rounded up to 7 Casual Leave (CL) days.

For 2005, there were 229 working days plus 5 days of leave with wages, totaling 234 days. The eligibility requirement was 240 days, resulting in no additional leave.

During 2006, there were 236 working days and 21 days of being laid off, making it 257 days eligible. This calculates to 236 days/20 days = 12 days (11.8 days).

In 2007, there were 45 working days, which translates to 45/20 = 2 days of leave.

The total leave with wage taken was 22 days, with 5 days already used (22 - 5 = 18 days). Therefore, the individual is eligible for 17 days of leave with wage.

Regards,
SHAN. V

If there are any mistakes, please provide the corrections to my email id: [Email Removed For Privacy Reasons].

Mr. Awvik is eligible for 17 days of leave with wages.

Leave Calculation for 2004

In 2004, there were 130 working days. The calculation for Casual Leave (CL) is 130/20 = 6.5, which rounds up to 7 CL days.

Leave Calculation for 2005

For 2005, there were 229 working days and 5 days of leave with wages, totaling 234 days. However, the eligibility was 240 days, resulting in no additional leave.

Leave Calculation for 2006

In 2006, there were 236 working days, and 21 days were laid off, making the total days eligible 257. Calculating leave entitlement gives 236 days / 20 days = 12 days (11.8 days).

Leave Calculation for 2007

In 2007, with 45 working days, the calculation for leave entitlement is 45 / 20 days = 2 days.

The total leave with wages taken is 22 days. After deducting the 5 days taken, the remaining entitlement is 18 days. Therefore, Mr. Awvik is eligible for 17 days of leave with wages.

Regards

If there are any mistakes, please let me know via email.

With regard to the above post, the total leave with wages is 21 days. Five days have already been taken; hence, the balance is 16 days eligible for leave with wages.

Regards,
Shan