Hi,
I work for an MNC, and our corporate handbook (released about 2 months back) states that there is no leave encashment for staff. However, this is a very standard practice in India. I would like to know the statutory regulation regarding leave encashment. Is it mandatory as per the law? If yes, which act and what section? We are not a factory but a software development house in Chennai.
Thanks,
Sivaraman
From India, Madras
Acknowledge(0)
Amend(0)
I work for an MNC, and our corporate handbook (released about 2 months back) states that there is no leave encashment for staff. However, this is a very standard practice in India. I would like to know the statutory regulation regarding leave encashment. Is it mandatory as per the law? If yes, which act and what section? We are not a factory but a software development house in Chennai.
Thanks,
Sivaraman
From India, Madras
Acknowledge(0)Amend(0)
Dear K R Sivaraman,
Please go through your State Shops & Commercial Establishment Act and examine the leave provisions. You will certainly find the answer to your query.
Regards,
R.N. Khola
Sr. Associate
From India, Delhi
Acknowledge(0)Amend(0)
422Please go through your State Shops & Commercial Establishment Act and examine the leave provisions. You will certainly find the answer to your query.
Regards,
R.N. Khola
Sr. Associate
From India, Delhi
Acknowledge(0)Amend(0)
Hi Seniors,
I am an HR professional. I am appearing for an interview this Monday with one of the Retail Giants in India for a position of HR Generalist + Compliance Analyst. Please advise me on the major applicable compliance rules and laws that need to be abided by all companies as a part of HR compliance.
I will be very thankful to you.
Regards,
Kanika Gupta
From India, Delhi
Acknowledge(0)Amend(0)
I am an HR professional. I am appearing for an interview this Monday with one of the Retail Giants in India for a position of HR Generalist + Compliance Analyst. Please advise me on the major applicable compliance rules and laws that need to be abided by all companies as a part of HR compliance.
I will be very thankful to you.
Regards,
Kanika Gupta
From India, Delhi
Acknowledge(0)Amend(0)
Dear Shivraman,
The Bombay Shops and Establishment Act of 1948 will be applicable to you. As per the above-mentioned act, 21 days of earned leave are permitted in a year. If you do not take the leave, the balance will be accumulated and carried forward in your account. The maximum leave you can accumulate is up to 42 days, which will be encashed when you leave the organization. It is not right to encash leave while in service.
If you have any other doubts, please feel free to ask.
Thank you,
JS Malik
From India, Delhi
Acknowledge(0)Amend(0)
The Bombay Shops and Establishment Act of 1948 will be applicable to you. As per the above-mentioned act, 21 days of earned leave are permitted in a year. If you do not take the leave, the balance will be accumulated and carried forward in your account. The maximum leave you can accumulate is up to 42 days, which will be encashed when you leave the organization. It is not right to encash leave while in service.
If you have any other doubts, please feel free to ask.
Thank you,
JS Malik
From India, Delhi
Acknowledge(0)Amend(0)
Dear JS Malik, Thanks for the info., but how about the CL encashment, if the company denies to encash it at the end of a financial year? Which Act / Law if supports? Regards, *Lav*
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
I have checked the Punjab shops and establishment act, (applicable in Haryana also). Leave encashment is not legally compulsory. We are not paying encashment. EL can be accumulated upto 30 days.
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Labr laws for Vendor compliance Management.pdf
Statutory Compliance of a Industrial or Commercial Unit.xls