Can staff of a Company registered under Factories Act calculate Salary for 26 days basis instead of 30/31/28 days.
As per Gratuity Act and as far as I am concerned all topics pertaining to salary and employment pertains to days and not months. If this is the case why not salary fixed eventhough paid monthly and meant as monthly salary for administrative purpose and when they go on loss of pay salary be calculated for loss of pay based on 26 days. Say if an employee takes leave on Saturday, Sunday and Monday on Loss of pay, his salary on loss of pay is for 2 days instead of three days and in this case the intervening holidays are not taken into account. Same way when he earns EL as per Factories act, Leave encashment is paid dividing his salary by 26 instead of 30. If this done for 26 days, ESI can be informed that Sundays are not paid and they will also provide the benefit accordingly only for the working days instead of all days.
However for Contract labours the wages are paid only for the days worked eventhough the bill is passed on monthly basis. Some say this is also to be done for 30 days since they are involved in regular work continuously.
Is this legally permissible and if so under which provision of which Act. Can anyone clarify if possible with Case laws or provisions of relevant act please.
Thanks / regards,
Sridhar N L
9551016279
