Leave Encashment in Pvt Ltd company
8 months ago
Dear Sir / Madam,
I resigned from a Pvt Ltd company on amicable terms after over 3.5 years' service, all F&F settlement was made after 2 months, however, leave encashment was not made.
31 days Leave EL was balance which was not paid citing change in Employee benefit policy to pay leave encashment during covid period. It is an American MNC Subsidiary, but local Directors are pathetic.
Do i have a right or legal stand as per current the India Labour laws to ask for encashment of leaves from the employer. Can i file a case in USA for malpractices by their local India subsidiary on HR and claim compensation.
If you are not a Manager/Supervisor but a workman as defined by Section 2(s) of the Industrial Dispute Act, it is suggested that you contact the office of the Labour Commissioner concerned to file a complaint against the employer for redress of your grievance, failing which you may file an application under Section 33C(2). Otherwise, you must initiate a civil complaint in Civil Court to obtain appropriate redress in the situation.
Typically this kind of leave is called Earned Leave because you 'earn' these leaves for days worked and are treated as paid leave. This kind of leave is also known as Vacation Leave (VL) or Privilege Leave (PL) or Flexi Holiday, or Annual Leave (AL). 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 worked. As per that per year total of 313 working days, hence 15 or 16 days leave can be granted. If your terms of employment allow encashment of Earned Leave up to a fixed limit, then you are entitled to claim encashment of said leave from the Company on your cessation of employment. Such an employee benefits policy is modified provisionally under special circumstances that invoke the clause of force majure that covers COVID/pandemic-driven situations which cannot be applicable or enforceable in a normal situation. A foreign Company when running a business in India, they are abiding by and governed by the law of the land. So, in case of denial of that service-linked benefit on cessation of employment, it may be suggested that if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then for such an arbitrary action and unfair labour practice, reach out to the office of the Labour Commissioner concerned for filing a complaint against the employer for redressal of your grievance failing which you may file an application u/s.33C(2) of ID Act before the Labour Court claiming any kind of dues from the Company. Otherwise, you have to file a civil suit before the Civil Court for appropriate relief in the matter
A.Dear Sir
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Section 12 in The Industrial Disputes Act, 1947
12. Duties of conciliation officers.- (relevant section 12(2) of ID Act)
(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall hold conciliation proceedings in the prescribed manner.
(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.
(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliationofficer shall send a report thereof to the appropriate Government 1 or an officer authorised in this behalf by the appropriate Government] together with a memorandum of the settlement signed by the parties to the dispute.
(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at.
(5) If, on a consideration of the report referred to in sub- section (4), the appropriate Government is satisfied that there is a case for reference to a Board, 2 Labour Court, Tribunal or National Tribunal,] it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.
(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: 3 Provided that, 4 subject to the approval of the conciliation officer,] the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.]
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