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ABHA METHAILA (Senior Executive HR)     08 March 2013

Earned leaves on pretext of 6 days working

An organisation which was previously 5 days working with offs on Saturday and Sunday, take signatures of employees on Employment Agreement saying that "they will give EARNED LEAVES only when they make organisation 6days working". please help me whether its legal or illegal?



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 2 Replies

Kumar Doab (FIN)     08 March 2013

Sometimes HR/Line Management/Senior management/Higher management/Promoters/IR/Employee Relations? admin indulge in something which is nuisance.

Apparently this is nuisance.

Such a practice may be termed unfair, bad………unlawful.

The o/o Labor commissioner, Chief Inspector may intervene and employer may have to declare such a declaration taken from employees as bad, void.

The company might have some other agenda behind such an act.

E.g. Payment of Gratuity Act:

Section: 2A
Continuous service

(2)

(a) for the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than -

(i) one hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) two hundred and forty days, in any other case;

 

Are standing orders applicable to the establishment?

What is establishment Commercial or Industrial Establishment?

Accordingly you may look into SE Act or Factor Act, Certified standing Orders of the company or Model Standing orders.

These may be available at Dept. of labor website of your state, or you may buy from market.

e.g:

SE Act Delhi:

22.    LEAVE:

(1) Every person employed in an establishment shall be entitled—

(a)  after every twelve months’ continuous employment, to privilege leave for a total period of not less than fifteen days;

  1. EMPLOYMENT OF ADULTS, HOURS OF WORK.
  2. INTERVAL FOR REST AND MEALS

11.  SPREAD OVER.

 

Factory Act,1948:  Every worker who has worked for a period of 240 days or more in a factory during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated @ in case of  an adult, one day for every twenty days of work performed by him during the previous calendar year;

Model Standing Orders: 9.           Leave.--(1) Holidays with pay will be allowed as provided for in [1][Chapter VIII of the Factories Act, 1948], and other holidays in accordance with law, contract, custom and usage.

 

Valuable advice of learned experts/members is sought.



[1] Subs  by .No. G.S.R. 732, dated 12th May, 1971


Attached File : 74820530 delhi shops & establishments act, 1954.pdf downloaded: 167 times

Suresh (Service)     09 March 2013

Earned Leave is based on the actual number of days you worked in a calander year. As per Factory Act it is 1day leave = 20 working days and as per Bombay Shop Act it is 21 days in a year (but the number of actual worked days will be considered to deduct if any from it).  I do not find any meaning in "they will give EARNED LEAVES only when they make organisation 6days working"   in this satement

Regards,

Suresh


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