Earned Leave
10 months ago
I resigned as manager After resigning My company is refusing to pay my Earned Leave. Saying you need to do minimum 4 year of service for earned leave encashment . Can company do so ?
A.Dear Client,
This leave type is called Earned Leave because you 'earn' these leaves for days worked and are treated as paid leave. The EL leave type is typically used by employees for personal reasons. As per Industrial Dispute Act all the workers/employees must be given 1 day for every 20 completed days of work. Accordingly, as per year total 313 working days, hence 15 or 16 days leave is earned by a workman. The company/Employer cannot treat it as unpaid and denied its encashment at the time of separation of the employee from service for any reason. So the argument or reason made by the Company in support of their action is highly arbitrary, unjustified and proves unfair labour practice on the part of the Company. The Company cannot withhold the encashment of said earned leave of a separated employee at the time of disbursement of F & F Settlement dues. Reach out to the office of Labour Commissioner concerned for redressal of your grievance by making a complaint against the Company for the unjustified action that proves unfair labour practice on their part. In case your Company falls under the purview of the Shops and Establishment Act then you need to visit the office of the concerned Chief Inspectt, Shops & Establishment for redressal of your grievance. However, in case you need any assistance in the matter of drafting the complaint or raising a dispute under I D Act before the Industrial Tribunal or under the Shops and Establishment Act, you may contact our legal team with the relevant papers.
This leave type is called Earned Leave because you 'earn' these leaves for days worked and are treated as paid leave. The EL leave type is typically used by employees for personal reasons. As per Industrial Dispute Act all the workers/employees must be given 1 day for every 20 completed days of work. Accordingly, as per year total 313 working days, hence 15 or 16 days leave is earned by a workman. The company/Employer cannot treat it as unpaid and denied its encashment at the time of separation of the employee from service for any reason. So the argument or reason made by the Company in support of their action is highly arbitrary, unjustified and proves unfair labour practice on the part of the Company. The Company cannot withhold the encashment of said earned leave of a separated employee at the time of disbursement of F & F Settlement dues. Reach out to the office of Labour Commissioner concerned for redressal of your grievance by making a complaint against the Company for the unjustified action that proves unfair labour practice on their part. In case your Company falls under the purview of the Shops and Establishment Act then you need to visit the office of the concerned Chief Inspectt, Shops & Establishment for redressal of your grievance. However, in case you need any assistance in the matter of drafting the complaint or raising a dispute under I D Act before the Industrial Tribunal or under the Shops and Establishment Act, you may contact our legal team with the relevant papers.
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A.Dear client,
The company's action in retaining your leave encashment is illegal and futile. According to the shops and establishment act, at the time of retirement or termination, the earned leaves can be encashed by an employee. As per the Karnataka Shops and Commercial Establishments Act, EL is calculated as 1 day for every 20 days worked by an employee. This is the leave an employee has earned and it is accumulated unlike the casual or sick leave.
The shops and establishment Act provides that every employee shall be authorized to preserve his earned leave for 40 days and allowed to encash the unused earned leaves. An employee can take the encashment while retiring or at the time of resignation, superannuation, release, dismissal or demise.
The company's action in retaining your leave encashment is illegal and futile. According to the shops and establishment act, at the time of retirement or termination, the earned leaves can be encashed by an employee. As per the Karnataka Shops and Commercial Establishments Act, EL is calculated as 1 day for every 20 days worked by an employee. This is the leave an employee has earned and it is accumulated unlike the casual or sick leave.
The shops and establishment Act provides that every employee shall be authorized to preserve his earned leave for 40 days and allowed to encash the unused earned leaves. An employee can take the encashment while retiring or at the time of resignation, superannuation, release, dismissal or demise.
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