Dear Forum Members,
Please help me understand a situation where under labour law this is stated that for every 20 days work performed 1 day of leave to be granted to an employee. Does this mean that weekly offs and NFH are to be deducted from the entire year in order to calculate the leave eligibility? That is actual working days an employee performed duty. However for weekly offs and NFH the employee is being paid.
Please clarify
Please help me understand a situation where under labour law this is stated that for every 20 days work performed 1 day of leave to be granted to an employee. Does this mean that weekly offs and NFH are to be deducted from the entire year in order to calculate the leave eligibility? That is actual working days an employee performed duty. However for weekly offs and NFH the employee is being paid.
Please clarify
An employee who has worked at least for 240 days during the twelve months will be eligible for getting earned leave at the rate of one day for every 20 days according to Factories Act. That means an employee who has not worked for 240 days will not be eligible for EL in the succeeding year. For deciding the eligibility for earned leave you can take the days of off, paid casual leave days, medical leave days, maternity leave days, paid earned leave days, lay off days, days for which the employee was on LEGAL strike and was on leave due to employment injury or on ESI leave. But he will earn leave or he will get earned leave only on the basis of ACTUAL days worked. Therefore, if one has put in 220 days work in 2010 but was on leave with pay for 12 days, was on ESI leave for 10 days, was laid off as per ID Act or settlement for 8 days will be eligible for earned leave in 2011 but his leave will be limited to 11 days calculated at the rate of one day for 20 days for 220 days only.
The above calculation applies to Plantations covered under the Plantations Labour Act also whereas under the Shops and Commercial Establishments Act, which is a state legislation, the provision relating to earned leave may be different.
Regards,
Madhu.T.K
From India, Kannur
3891The above calculation applies to Plantations covered under the Plantations Labour Act also whereas under the Shops and Commercial Establishments Act, which is a state legislation, the provision relating to earned leave may be different.
Regards,
Madhu.T.K
From India, Kannur
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x