Contract Labor and Leave Encashment: Is 240 Days of Work a Requirement?

Please suggest to me if contract labor does not work for 240 days in a year, is he eligible for leave encashment under the Contract Labor Act of 1970.

As per your statement, the employee has not worked for 240 days. Where does the question of EL encashment arise?

V. Murali

Where are the contract workers working? In the factory or establishment? Annual leave wages are described under two acts, not under the CL Act. If the separation of service is due to the employer, the payment of pro-rata leave wages (not leave encashment, as it is incorrectly called) has to be made. The 240-day criteria are for crediting leave on the 1st of January every year. In the F&F settlement, leave wages for even one day are required to be paid.

Please let me know if you need any further assistance or clarification.