Encashment of annual leave (earned leave)
PBS KUMAR
(Querist) 02 November 2011
This query is : Resolved
Dear Experts
Sir,
Our company is a big manufacturing unit. We introduced 12CLs,12SL,&15ELs. The ELs as per the Factories Act. As we have approved leaves rules and as per that more than 60 days of ELs will be encashed in every Jan month before Pongal (Shankranthi) for all the employees. Now our management has changed they asked in which act it was adopted please show. As a HR-Manager I adopted these rules from the HL Kumar's Leave Rules book and the system is running since 12 years. Please give me your suggestion to over come this hurdel.
Regards,
PBS KUMAR
Guest
(Expert) 02 November 2011
Dear Kumar,
Any particular employee benefit once introduced becomes quite difficult to be stopped or reduced without mutual consent of the labour union of the industry. If you try to do so now, you will just be inviting unending trouble for the management. You cannot do so, particularly for the existing employees, who are working on the terms and conditions already notified to them.
PBS KUMAR
(Querist) 02 November 2011
Dear Sirs,
Your are very true, but the management ask me to show from which act it was encashble. If it is not in Factories Act please advise me from any other act the provision is there.
Regards,
PBS KUAMR
prabhakar singh
(Expert) 02 November 2011
There is not only one basis on which a leave policy is made.various factors are taken into consideration in making a policy regarding grant of leave. The factories Act provides for only earned leaves and no more.You can look into concerned Shop establishment,if helpful or not.If you were to simply copy cat a book which is written on preaching considerations and not on only statutory provisions ;you must have looked for consulting earlier,before implementing the same,how can we tell you all leave justifications framed by copying any policy book.
