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Mahi   27 October 2016

Leave encashment law or rule

Dear Sir,

               Please elaborate on law or rule for workmen regarding accumulation of Earned leave /PL i.e means what is the maximum no of leaves a workman can accumulate thorough out his entire service ,which he can encash it on retirement or termination or superannuation.

             My question is what is maximum number of earned leave/PL workman can accumulate in his entire service.Because in my employer case earlier  it was  180 days and now they have changed it to 90 days .It is discretory to decide by the employer or there is Law to be followed?

           My earned leave/PL definition means employee has not availed the earned leave during his job tenure and at the retirement or termination time he want to have encash for the same.

          My discussions with govt.employees saying that in govt.sector it is maximum ten months I.e 300 days ,What about in private sector?

         Please elaborte

        Regards



Learning

 9 Replies

Kumar Doab (FIN)     27 October 2016

Refer to the enactments that apply to establishment e.g; Shops & Estbs Act.

The employer can provide superior benefits but not inferior.

The change in service conditions is once again in concurrence with applicable enactments.

If employment has been terminated then show all docs on record to a very able counsel specializing in Labor/Service matters.

 

 

Akash Kapoor (Owner at Shramsamadhan India)     27 October 2016

Three legislations will determine you correct position in this case :-

1) Factories Act, if you are working in a factory. 

2) Industrial Employment Standing Order if you are covered in that.

3) Shops and Establsihment Act, that changes as per the state.

So your question is incomeplete till you do not mention the state and your employment industry. For general details visit https://www.shramsamadhan.com/

Mahi   28 October 2016

 Dear Sir,

              Elaborating the details here please for better understanding

1- employer is  in pharmaceutical manufacturing and selling and having factory and head office in Karnataka state

2--- we employees are covered by stranding orders,but employer Donot have and neither any thing mentioned in our appointment letter.Means leave encashment is no where mentioned in contract letter but my sources says that my employer used to pay 180 days leave encashment but now since 2010 same is reduced to 90 days only.

3---- in nut shell employer in pharma manufacturing and selling, we are sales promotion employees covered under SPE Act 1976 and company head office in karnatka.

hope this will help you in replying the question in better way.

Regards

Kumar Doab (FIN)     28 October 2016

The standing orders may not neccesarily be mentioned in appointment letter.

If applicable these shall apply even if not mentioned in appointment letter.

The employer should display at a conspicious place in office and provide a copy against a nominal cost say Rs10/.

 

Employee can obtain copy from certifying officer ( that might be DLC) against a nominal fee say Rs3/page.

 

Kumar Doab (FIN)     28 October 2016

Your local state office might have been covered under Shops & Estbs Act.

The benefits of 180 days could not have been withdrawn arbitrarily.

Your posts from other threads convey that you are well versed with standing orders and have counsel specializing in Labor/civil/criminal matters to advise you.

 

What is the opinion of your own counsel?

 

 

 

 

Kumar Doab (FIN)     28 October 2016

Apparently you have not gone thru the Rules applicable in your case, carefully and hence areconfused:

The Sales Promotion Employees (Conditions of Service) Rules, 1976 

Sec;4

Rule 14. Earned leave and cash compensation for earned leave not availed of.--The maximum limit up to which earned leave can be accumulated shall be 180 days out of which a sales promotion employee can avail himself of 90 days at a time : 

 

(5) Where a sales promotion employee services are terminated for any reason whatsoever (not being termination as punishment), he shall be entitled to cash compensation for the entire earned leave due to him and not availed of.

(6) The cash compensation payable under this rule in respect of earned leave shall be equal to the amount of wages due to the sales promotion employee for the period of leave not availed of or refused. 

 

https://pblabour.gov.in/Content/documents/pdf/acts_rules/the_sales_promotion_employees_conditions_of_service_rules_.pdf

 

Mahi   29 October 2016

Dear mr.doab,

                                            True sir  you deserve appreciation.

Kumar Doab (FIN)     29 October 2016

Thank You.

You are welcome.


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