All companies have their leave policies based on the labor laws applicable to them. The different Acts contain provisions for leave entitlement. 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 reason) of the workers.
Some of the labor laws that deal with earned or privilege leave are as follows:
1. 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 can be enjoyed in the subsequent year. In the case of an adult, he/she becomes eligible for a day leave for every 20 days worked in the previous year. In the case of a child (i.e., a person who has not completed his/her fifteenth year of age), they become entitled to one day of leave for every 15 days worked during the previous year. These earned leaves can be carried forward to an extent of 30 days in the case of adults and not more than 40 days in the case of children.
2. The Mines Act, 1952 provides that every person employed in a mine who has completed a calendar year's service shall be allowed leave with wages during the subsequent calendar year. 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 mentions 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 the 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 the 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, 1951 provides 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 that when a worker is discharged or dismissed from service, quits his employment, 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 enlightened if any member contributes on the aspect of quantum and encashment of leave under any other labor legislations.
Regards,
BS Kalsi