Hai All, I hope all are doing good... Can you please help me in coming to a conclusion for the below scenario?
I am worked in a start-up company, there is no certain leave policy.
One employee took leave from May 24, 2021, to May 28, 2021, and came to work on May 31, 2021, he also works on May 21, 2021. We are considering no: of workings days for 30 days and our organization is 5 days a week. In general according to Industrial Dispute Act,1947 every employee can avail a week off if worked for 45 hours a week.
Can you let me know how many LOP does an employee gets in the above scenario?
Thank you.
From India, Hyderabad
I am worked in a start-up company, there is no certain leave policy.
One employee took leave from May 24, 2021, to May 28, 2021, and came to work on May 31, 2021, he also works on May 21, 2021. We are considering no: of workings days for 30 days and our organization is 5 days a week. In general according to Industrial Dispute Act,1947 every employee can avail a week off if worked for 45 hours a week.
Can you let me know how many LOP does an employee gets in the above scenario?
Thank you.
From India, Hyderabad
It appears that the leave policy may be governed by S & E Act if not a Factory. 22nd and 23rd were normal day off for 5 days week. Leave from 24th to 28th. Again 29th and 30th normal day off. Joined on 31st. There will be no LOP if the employee has leave balance in his credit.
From India, New Delhi
300From India, New Delhi
You have five day week, so the employee is on leave from May 24th to May 28th, 22nd & 23rd being the prefix and 29th and 30th being suffix. So the leave period is only the working days. LOP refers to loss of pay, I presume in that case the prefixed and suffixed holidays will not be LOP.
From India, Mumbai
From India, Mumbai
I would suggest that you do not look at this matter from a narrow and short term view. If the employee gets paid for a weekly off, you do not lose a significant amount but it enhances the employee's goodwill towards the company.
In terms of the requirement of the law, under the Shop & Establishment Act (I am assuming startup is not a factory), you have a fixed weekly off. If the worker is absent on that day, you still need to pay him, provided he worked either the day before or after the weekly off.
In case you have staggered weekly off, the same rule will apply, though you can change his weekly off considering his rejoining day as the first working day of the week. But such manipulation is generally a bad idea.
In your case, since you have 2 weekly off, and he has worked on the last working day and the next working day, you can deduct salary (or apply paid leave day) only for the period from Monday to Friday when he took leave.
I am assuming : you are not a factory, less than 50 employees and your weekly off is Saturday Sunday
From India, Mumbai
In terms of the requirement of the law, under the Shop & Establishment Act (I am assuming startup is not a factory), you have a fixed weekly off. If the worker is absent on that day, you still need to pay him, provided he worked either the day before or after the weekly off.
In case you have staggered weekly off, the same rule will apply, though you can change his weekly off considering his rejoining day as the first working day of the week. But such manipulation is generally a bad idea.
In your case, since you have 2 weekly off, and he has worked on the last working day and the next working day, you can deduct salary (or apply paid leave day) only for the period from Monday to Friday when he took leave.
I am assuming : you are not a factory, less than 50 employees and your weekly off is Saturday Sunday
From India, Mumbai
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LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Leave Encashment & Salary Calculation.xls x