Is It Necessary to Pay Earned Leave for Workers Leaving After 1-2 Months?

Please advise whether it is mandatory to pay E.L. in settlement for the workers who left the factory after working for 1 or 2 months.

Entitlement of Earned Leave as per the Factories Act

The Factories Act provides annual/earned leave of 12 working days for all workers who have worked at least 240 days in a year. However, the duration of earned/annual leave differs for adult and young workers. If a worker takes four or more days' leave at a time, their wages are paid before the leave begins.

In your query, when the employee left after only 1 or 2 months, it is considered short for eligibility for EL. Therefore, no EL is earned, and as the employee has already left, there is no obligation for leave encashment as well.

Regards

In my opinion, in this case, the worker will be entitled to EL in accordance with Section 79(3) of the Factories Act, 1948, which may be read as follows.

Section 79(3)

If 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. This is calculated at the rates specified in sub-section (1), even if he had not worked for the entire period specified in sub-section (1) or sub-section (2) making him eligible to avail of such leave. Such payment shall be made:

(i) Where the worker is discharged or dismissed or quits employment, before the expiry of the second working day from the date of such discharge, dismissal, or quitting; and

(ii) Where the worker is superannuated or dies while in service, before the expiry of two months from the date of such superannuation or death.

Regards, R N LHOLA

Any employee who quits their job after working for more than 20 days is entitled to Earned Leave (EL) as specified in The Factories Act, 1948. However, the entitlement to leave will be on a pro-rata basis, i.e., 1 day for every 20 days worked.

He is entitled only if he fulfills the condition in Section 79(2) of the Factories Act.

Entitlement to Wages for Leave Under The Factories Act, 1948

Section 79(3) of The Factories Act, 1948 states that if 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. This should be calculated at the rates specified in sub-section (1), even if he had not worked for the entire period specified in sub-section (1) or sub-section (2) making him eligible to avail of such leave. The payment shall be made accordingly.