I have been seening many posts on this subject without any reference to legal position barring a few
1. Factories Act
This act has no provision for CL or Sick Leave and in a factory if you have introduced CL or Sick Leave, then whatever rules the Company has framed will be applicable. Providing extra leave is beneficial and hence whatever rules a Compoany frames will be legal. However, Factories Act also does not contemplate weekly off with wages. It provides for weekly off. Moreover, Earned Leave provided in Factories Act will count only the working days and any leave falling in between will not be counted.
Keeping this background in mind, let us examine further.
I already wrote in this posting that it depends on how we calculate wges for loss of pay leave. If we take 26 as denominator, then we do not consider payment for weekly off. Consider the following logic
1. Factories act provides for earned leave
2. It also provides for exclusion of Weekly off from counting earned leave. In other words, Sundays falling in between will
not be counted
3. With this logic, we normally use 26 as denominator in Factories wherever we have monthly rates. In daily rates, such
confusion will not occur.
4. If we use one logic for Earned leave, it does not mean that we need to use the same logic for CL or SL which are not
provided in law,
5. We can provide for inclusion of CL or SL in a factoryif a Sunday falls in between or we can exclude as well depending
on the Company's policy
2. Shops and Establishments act
This act provides for earned Leave and Casual leave and in some cases Sick Leave as well. This Act , in many States also provides for Weekly off with pay. This clause also puts a condition that to be eligible for weekly off with pay, an employee must have worked for 6 days in the week. The Act does not exclude counting of weekly off for Earned Leave or Casual leave
With the above as backdrop, let us examine the logic
1. The Act provides for Earned leave and Casual leave
2. Weekly off is paid
3. Hence monthly rate of wages need to be divided by 30 to arrve at Daily rate
4. If we arrive at daily rate by using 30 as denominator, then include weekly off falling in between paid leave.
5. however Minimum wages act prescribes divison by 26 to arrive at daily rate
6. This claue of Minimum wGes Act is applicable only where we restrict our payment to the prescribed minimum wages
7. In such an event, then exculde Sundays falling in between two paid leave
My submission in this forum on this subject is
1. Examine relevent legal provisions
2. Decide the denominator for arriving at one day wages for calculating loss of pay or over time or encashment of leave
3. That will bring out a logical conclusion as to whether Sundays falling between two paid leave can be counted as leave or not
Thanks
T Sivasankaran
1. Factories Act
This act has no provision for CL or Sick Leave and in a factory if you have introduced CL or Sick Leave, then whatever rules the Company has framed will be applicable. Providing extra leave is beneficial and hence whatever rules a Compoany frames will be legal. However, Factories Act also does not contemplate weekly off with wages. It provides for weekly off. Moreover, Earned Leave provided in Factories Act will count only the working days and any leave falling in between will not be counted.
Keeping this background in mind, let us examine further.
I already wrote in this posting that it depends on how we calculate wges for loss of pay leave. If we take 26 as denominator, then we do not consider payment for weekly off. Consider the following logic
1. Factories act provides for earned leave
2. It also provides for exclusion of Weekly off from counting earned leave. In other words, Sundays falling in between will
not be counted
3. With this logic, we normally use 26 as denominator in Factories wherever we have monthly rates. In daily rates, such
confusion will not occur.
4. If we use one logic for Earned leave, it does not mean that we need to use the same logic for CL or SL which are not
provided in law,
5. We can provide for inclusion of CL or SL in a factoryif a Sunday falls in between or we can exclude as well depending
on the Company's policy
2. Shops and Establishments act
This act provides for earned Leave and Casual leave and in some cases Sick Leave as well. This Act , in many States also provides for Weekly off with pay. This clause also puts a condition that to be eligible for weekly off with pay, an employee must have worked for 6 days in the week. The Act does not exclude counting of weekly off for Earned Leave or Casual leave
With the above as backdrop, let us examine the logic
1. The Act provides for Earned leave and Casual leave
2. Weekly off is paid
3. Hence monthly rate of wages need to be divided by 30 to arrve at Daily rate
4. If we arrive at daily rate by using 30 as denominator, then include weekly off falling in between paid leave.
5. however Minimum wages act prescribes divison by 26 to arrive at daily rate
6. This claue of Minimum wGes Act is applicable only where we restrict our payment to the prescribed minimum wages
7. In such an event, then exculde Sundays falling in between two paid leave
My submission in this forum on this subject is
1. Examine relevent legal provisions
2. Decide the denominator for arriving at one day wages for calculating loss of pay or over time or encashment of leave
3. That will bring out a logical conclusion as to whether Sundays falling between two paid leave can be counted as leave or not
Thanks
T Sivasankaran