Leave encashment
N.J. MISHRA
(Querist) 13 March 2013
This query is : Resolved
OUR COMPANY IS REGISTERED UNDER BOMBAY SHOP AND ESTABLISHMENT ACT. NOW MY QUERY IS THAT WHETHER EMPLOYEE IS ENTITLED FOR LEAVE ENCASHMENT BESIDES REGULAR HOLIDAYS(IF PENDING ANY) AT THE TIME OF HIS RESIGNATION OR RETIREMENT OR TERMINATION.
SECTION 35(2) OF BOMBAY SHOP AND ESTABLISHMENT I AM FINDING LITTLE CONFUSING, PLEASE MEMBER KINDLY GUIDE.
Kumar Doab
(Expert) 13 March 2013
Plain reading of the sections suggests: Having submitted leave application by an employee who is entitled to leave, is sufficient for eligibility to get the payment @ as defined in Sec 36.
The approval or refusal to grant leave does not matter.
Valuable advice of learned experts/members is sought.
Adv k . mahesh
(Expert) 13 March 2013
35(2) If an employee entitled to leave under sub-section (1) [or (1-A)] is discharged by his employer before he has
been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment
before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect
of the leave.
Section 36: Pay during leave
Every employee shall be paid for the period of his leave at a rate equivalent to the daily average of his wages for
the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of
overtime
He is entitled for encashment after his resignation
