I would really appreciate it if you could provide me with any help concerning my query, mentioned below:
Company Leave Policy Under the Shops and Establishment Act
The company is registered under the Shops and Establishment Act. According to this act, a minimum of 15 days of Paid Leave (PL) is to be given annually and can be accumulated for up to 3 years.
I am tasked with preparing the Full and Final (F&F) settlement for resigned employees. The company does not have a specific leave policy, although it has been mentioned in the Terms and Conditions (T&C) of employees that they would be given 30 days of PL annually. The duration up to which it can be accumulated is not specified.
It also appears that the company does not have any standing orders. My senior informed me that the company does not allow PL accumulation beyond one year. Previously, they used to encash accumulated PLs annually, but they have now discontinued that practice. Employees have been verbally instructed to utilize all PLs by the end of the year, as the company will not encash them.
Additionally, please note that the company has not maintained leave account records for employees. Consequently, it has been challenging to determine the maximum number of days of PL that can be provided to resigned employees.
Please help!
Thank you.
From India, Delhi
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23Company Leave Policy Under the Shops and Establishment Act
The company is registered under the Shops and Establishment Act. According to this act, a minimum of 15 days of Paid Leave (PL) is to be given annually and can be accumulated for up to 3 years.
I am tasked with preparing the Full and Final (F&F) settlement for resigned employees. The company does not have a specific leave policy, although it has been mentioned in the Terms and Conditions (T&C) of employees that they would be given 30 days of PL annually. The duration up to which it can be accumulated is not specified.
It also appears that the company does not have any standing orders. My senior informed me that the company does not allow PL accumulation beyond one year. Previously, they used to encash accumulated PLs annually, but they have now discontinued that practice. Employees have been verbally instructed to utilize all PLs by the end of the year, as the company will not encash them.
Additionally, please note that the company has not maintained leave account records for employees. Consequently, it has been challenging to determine the maximum number of days of PL that can be provided to resigned employees.
Please help!
Thank you.
From India, Delhi
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not 12 but it should be 15 in a year and encashment should be done upto 30PL and upto the three years above than 30 above time frame the leave should be lapsed no encashment should be done. sumit
From India, Ghaziabad
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From India, Ghaziabad
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First of all, it is mandatory to maintain leave records of the employees. You can download a leave tracker from Cite HR. You can go through leave-related topics to get more clarity. Leaves can be categorized into CL's, SL's, and PL's. CL's and SL's will be lapsed at the end of each year, whereas PL's will be carried forward to the next year. PL's can be encashed and carried forward for up to three years before lapsing automatically. However, this depends on your company's leave policy.
Thanks & Regards,
Srilakshmi Korukonda
From India, Hyderabad
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Thanks & Regards,
Srilakshmi Korukonda
From India, Hyderabad
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Leave Policy.doc