Earned Leave Encashment - Resigned Staff

erv

Hi,
In our company we follow Shops & Establishments Act (Tamil Nadu).
One employee joined us on 01.08.2008 and left us on 09.07.2009.
As per TN Shops & Establishment act every person shall be entitled after 12 months of continuous service to leave with wages for a period of 12 days.
Since he has not completed 12 months continuous service we did not give him any earned leave.
But the person is claiming that since he has quitted the employment, he is eligible for 11 days EL for encahment.
Should we have to give the 11 days encashment amount to him. Pl suggest.
Regards
erv

charvaka

i didn't understand regarding ur leave procedure
please see that for resigned employee we have to pay fnf along with bonus & leave encashment.

ryanconsult@gmail.com

Hi,
Sec 25 (1) of the TN Shops & Estt Act, 1947 is very clear " 25 (1) Every person employed in any estt shall be entitled, after 12 months' continuous service, to holidays with wages for a period of 12 days, in the3 subsequent period of 12 months...."
Since in this case the employee is quitting before completing 12 months' continuous service, he may not be entitled to leave encashment.
regards
Patrick Ryan

goyal_naresh

Section 25(3) of Tamilnadu Shops & establishment act says

"If a person entitled to any holidays under sub- section (1) is discharged by his employer before he has been allowed the holidays, or if having applied for and been refused the holidays, he quits his employment before he has been
allowed the holidays, the employer shall pay him the amount payable under this act in respect of the holidays"

Hence you must pay the leave encashment as per rules and the employee is rightfuil in claiming it.

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