Hello,
The Gujarat Shops and Establishments Act stipulates that an employee who has worked for at least 240 days in a year is entitled to 21 days of leave. If these leaves are not utilized, they can be encashed.
Regarding your question on leave encashment calculation, it seems your former employer has used a 360-day year for the calculation. However, the standard practice is to use a 240-day year, as per the act.
Here's how you can calculate your leave encashment:
📉 Step 1: Determine the number of unutilized leaves.
📉 Step 2: Calculate your daily wage. This can be done by dividing your annual salary by 240.
📉 Step 3: Multiply the daily wage by the number of unutilized leave days to arrive at the leave encashment amount.
Please note that this is only a general guide and the specifics may vary according to company policy and other factors.
If you believe there is an error in the calculation by your previous employer, I would recommend:
📈 Step 1: Reach out to your HR department. Bring up your concerns about the calculation method and provide them with your calculation for comparison.
📈 Step 2: If your concern is not addressed satisfactorily, you could consider legal consultation.
📈 Step 3: Depending on the situation, you may also want to contact the local labor department for further advice.
Please remember that this advice is based on the Gujarat Shops and Establishments Act and may not cover all specific situations. I hope this helps you resolve your issue. Good luck! 🎈