Dear Team, One of my employees is demanding PL encashment after completing 1 year since his relieving from the company. As per our company policy, an employee cannot encash their balance PL under any circumstances, nor can they use it against their notice period. Now, he is threatening me with labor law.
Mandatory PL Encashment for Managerial Employees
I want to know if it is mandatory to encash PL for managerial level employees as per the Factory Act or Shop and Establishment Act. If so, please specify the section and act. My head office is in Mumbai. Please help.
Thanks & Regards, HRD.
From India, Mumbai
Acknowledge(0)
Amend(0)
1Mandatory PL Encashment for Managerial Employees
I want to know if it is mandatory to encash PL for managerial level employees as per the Factory Act or Shop and Establishment Act. If so, please specify the section and act. My head office is in Mumbai. Please help.
Thanks & Regards, HRD.
From India, Mumbai
Acknowledge(0)Amend(0)
Final Settlement for Resigning Employees
Any employee resigning or terminating their employment must be settled with final dues and properly sent off from the company. If this does not happen, these issues can arise later, which are both painful and time-consuming.
Moreover, as you stated that the company policy does not allow encashment, this should be reviewed, as the full and final settlement should include all dues.
Labour Court Challenges
As far as I am informed, a managerial person cannot challenge the company on these grounds at the Labour Court. Labour courts are appropriate forums for the workmen category.
From India, Hyderabad
Acknowledge(1)Amend(0)
Any employee resigning or terminating their employment must be settled with final dues and properly sent off from the company. If this does not happen, these issues can arise later, which are both painful and time-consuming.
Moreover, as you stated that the company policy does not allow encashment, this should be reviewed, as the full and final settlement should include all dues.
Labour Court Challenges
As far as I am informed, a managerial person cannot challenge the company on these grounds at the Labour Court. Labour courts are appropriate forums for the workmen category.
From India, Hyderabad
Acknowledge(1)Amend(0)
Dear HRD@BSTE, as an employer, you are not in a position to categorically state whether you are registered under The Factories Act/Shops & Commercial Establishments Act. Please peruse the relevant Acts in detail. Your company policy is not in conformity with The Factories Act/Shops & Commercial Establishments Act. Relevant laws will prevail over your policy.
Leave and Leave Encashment
The Factories Act/Shops & Commercial Establishments Act provide for leave/leave encashment to all employees of the organization. Even managerial personnel are entitled to the benefits provided under the relevant laws.
Appropriate Forum for Adjudication
Department of Labour/The Factories & Boilers Department - Appropriate forum for adjudication of non-payment of leave encashment.
As per relevant laws, leave encashment is payable for balance leave at credit consequent to resignation from service.
From India, New Delhi
Acknowledge(0)Amend(0)
Leave and Leave Encashment
The Factories Act/Shops & Commercial Establishments Act provide for leave/leave encashment to all employees of the organization. Even managerial personnel are entitled to the benefits provided under the relevant laws.
Appropriate Forum for Adjudication
Department of Labour/The Factories & Boilers Department - Appropriate forum for adjudication of non-payment of leave encashment.
As per relevant laws, leave encashment is payable for balance leave at credit consequent to resignation from service.
From India, New Delhi
Acknowledge(0)Amend(0)
Dear Sir, Is their any time limit after resignation for raising this kind of issue?
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
It is better for HR to clear off the employee's dues who has resigned.
All the statutory enactments are in favor of the weaker section and shall not support managements, which are the stronger segments in business/employee employer relation.
Regarding time limits, all are governed by Contract Acts & Labour Enactments.
From India, Hyderabad
Acknowledge(0)Amend(0)
All the statutory enactments are in favor of the weaker section and shall not support managements, which are the stronger segments in business/employee employer relation.
Regarding time limits, all are governed by Contract Acts & Labour Enactments.
From India, Hyderabad
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.
Women Factory Employees Facilities as per factory Act.pptx
EMPLOYEES' COMPENSATION ACT - IMP- PROVISIONS IN TELUGU VERSION.pdf
FACTORY ACT 1948.xls