Law Regarding Encashment Of Privileged(Earned) Leave

I work in a Market research organisation at Hyderabad and I would like to gain more knowledge about a few HR issues. I would like to know
1) Which law governs the present BPO/KPO? Does Factory Law/Labour Law hold good?
2) Is leave a right of the employee or not
3)Is encashment of Privileged leave (if unused) mandatory by organisations?

Hi Priya..
See.. any of the industry is required to follow some rules governed by the Laws.. or Act..
And similarly.. BPO/KPO industries are also required to follow those rules.. they are covered under both Factory as well as Labour Act..
Yes.. According to Factories Act, Leave of one day must be provided if 20 days of work performed...
According to Factories Act,
Organisations are required to give paid leaves and the unused paid leaves must be encashed at the end of calender year or at the time of separation from the organisation...
Regards,
Amit Seth.

Hi Priya
Factories Act is applicable only when "manufacturing" or any process which can be deemed to be "manufacturing" is carried out by an employer. In the case of BPO/KPO there is no such process. For such and other establishments generally the local State Government has Shops & Commercial Establishments Act, which also spells out the leave rules.
Regards