Curious About HR Laws in BPO/KPO? Let's Discuss Leave Rights and Encashment!

I work in a market research organization in 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 sector? Does the Factory Law/Labor Law apply?
2) Is leave a right of the employee or not?
3) Is the encashment of Privileged leave (if unused) mandatory by organizations?

Hi Priya,

Any industry is required to follow rules governed by the laws or acts. Similarly, BPO/KPO industries are also required to adhere to these rules, as they are covered under both the Factory and Labour Acts.

According to the Factories Act, one day of leave must be provided after 20 days of work. Organizations must also provide paid leaves, and any unused paid leaves should be encashed at the end of the calendar year or upon separation from the organization.

Regards,

Amit Seth

Hi Priya,

The 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 the Shops & Commercial Establishments Act, which also spells out the leave rules.

Regards