Is My Leave Encashment Underpaid? Understanding the Maharashtra Shops and Establishment Act, 2017

I was in a managerial position, and at the time of my resignation, the private company where I was working paid only a basic amount towards my leave encashment. The Maharashtra Shops and Establishment Act, 2017 states that any leave encashment is subject to FULL wages.

Please clarify the legal position and also whether the said Act is applicable to me even though I was in a managerial position there?

Dear Sir,

As per the leave encashment section 79 of the Factory Act, 1948, one leave is earned after 20 days of working. Therefore, the leave paid is equal to one day's equivalent payment. However, the leave act mentions payment on a wages basis, where wages refer to basic pay plus DA. Additionally, the calculation depends on the company's standing order. All decisions are made according to the company's standing order. If the wages are mentioned, that is correct; otherwise, it is considered incorrect.

Thank you.

Thank you for the clarification. But I am not governed by the Factories Act or Standing Orders. I am governed by the Shops & Establishments Act. Kindly advise in the light of this fact.