Dear Manish,
All the companies have their leave policy based on the labour laws applicable to them.The different Acts contain the provisions of leave entitlement but as far as encashment of leave is concerned, no specific provisions have been enumerated for the quantum of leave,in any of the Acts, which can be accumulated except in the case of termination of services (for any reasons) of the workers.Some of the labour laws,which deals with the earned or privilege leave are as under:-
!. The Factories Act, 1948 stipulates that a worker, who has worked for at least 240 days in a calendar year becomes eligible for earned leave which he can enjoy in the subsequent year. In case of an adult, he/she becomes eligible for a day leave for every 20 days worked in previous year. In case of child, (i.e. a person who has not completed his/her fifteenth year of age) becomes entitled to one day leave for every 15 days worked during previous year.These earned leaves can be carried forward to an extent of 30 days in case of adult and not more than 40 days in case of child.
2. The Mines Act,1952 provides that every person employed in a mine who has completed a calendar year’s service shall be allowed during the subsequent calendar year leave with wages.In the case of a person employed below ground, leave is calculated at the rate of one day for every 15 days of work performed by him/her. In other cases, leave is calculated at the rate of one day for every 20 days of work performed by him/her.
3. Section 26 of the Bidi and Cigar Workers (Conditions of Employment) Act, 1966 mention that an adult worker becomes entitled to annual leave for one day for every 20 days of work performed by him/her during the previous calendar year. Adult workers can carry forward these leaves to the extent of 30 days.In case of a young person he/she becomes entitled to annual leave with wages for one day for every 15 days of work performed by him/her during the previous calendar year, and the same can be carried forward to an extent of 40 days.
4. As per Sales Promotion Employees (Conditions of Service) Act, 1976, employees become eligible for leave with full wages for not less than one month for every 11 months spent on duty. These earned leaves can be encashed on voluntary relinquishment or termination other than by way of punishment.
5. The Plantation Labour Act, 1951provides that an adult worker is entitled to one day of paid leave for every 20 days of work and a child or adolescent worker is entitled to one day of paid leave for every 15 days worked. These leaves can be carried forward to an extent of 30 days.
A common provision in all the above Acts is as that when a worker is discharged or dismissed from service or quits his employment or is superannuated or dies while in service, during the course of the calendar year, he or his heir or nominee, as the case may be, shall be entitled to wages in lieu of the quantum of leave to which he was entitled immediately before his discharge, dismissal, quitting of employment, superannuation or death.
I would like to be enlighten if any member contributes on the aspect of quantum and encashment of leave under any other labour legislations.
BS Kalsi
Member since Aug 2011