Leave Encashment Dilemma: Should Employees with Less Than 240 Days Get Paid for Unused Leave?

I am working in a limited company and I have a problem regarding leaves given to employees. If an employee's number of working days is less than 240 days, excluding weekly offs and national holidays, should he/she be eligible for encashment of earned leaves?

Thank you.

As per your narration, the particular employee has worked less than 240 days in that year, excluding the days availed as a weekly-off and National holidays, right? If so, can you tell me whether the days of absence falling short of 240 days are just unauthorized absence on account of no prior intimation or leave on loss of pay after duly informing the management? In case of unauthorized absence, was any disciplinary action taken against him? Since you have mentioned only the constitution of the establishment and not its type, such as whether a shop or factory, I have to keep my answer very general.

Eligibility for Earned Leave

Firstly, eligibility for earned leave arises only if the employee has worked for 240 days or more in a calendar year or 2/3 of the total number of days in the remainder of the calendar year if his service commences on any day other than the first day of January. Secondly, there is no explicit or implied provision in any law, if I remember correctly, for encashment of earned leave other than in the event of termination of employment.

Regards.

Eligibility for Earned Leave and Encashment

240 days are not excluding weekly offs and national holidays; they are including both. If the employee has worked 240 days, including days off and national holidays, they are entitled to Earned Leave. Concerning encashment, please refer to the Leave Policy of your company.

You mean to say that National Holidays and weekly offs are not considered as paid days????

Eligibility for Earned Leave

Eligibility for earned leave arises if and only if the employee has worked for 240 days or more in a calendar year, or 2/3 of the total number of days in the remainder of the calendar year if their service commences on any day other than the first day of January.

As mentioned by Shri Umakanthan, if you calculate 2/3 of 365 days, it comes to 243 days. Therefore, as per the Act, it is also considered 240 days or more in a calendar year. For any person joining in between the calendar year, it should be 2/3 of the total number of days. I hope this clarifies the confusion.

Attribution: https://www.citehr.com/497253-leave-...#ixzz35eM8Wj90

Are the workers in a factory eligible for casual leave, or is it compulsory for a factory owner to allot casual leaves to laborers/workers as well? If yes, then how many casual leaves are allowed as per the law (minimum and maximum)?

Thank you.