Leave encashment

Dear Client,
Under the Factories Act, workers who have worked at least 240 days in a factory during the year are entitled to annual leave. Adults earn one day for every 20 days worked, while employees under 18 earn one day for every 15. The Shops and Establishment Act provides detailed guidelines on leave entitlements for employees working in commercial establishments such as shops, offices, and restaurants. The provisions vary from state to state. Under this Act, employees accrue one day of paid privilege leave also known as earned leave for every 20 days worked, typically 15 days for every 240 days worked. Employees are entitled to up to 12 days of casual leave per year to use for urgent or unforeseen personal matters. Casual leave can’t be carried forward or accumulated. Employees can carry over all unused earned leave days into the following year excluding sick and casual leaves. This is limited to 30 days in most cases, but employees covered by the Shops and Establishments Act can carry over 45 to 60 days, depending on the region. Some states allow leave carryover for up to three years. When accrued leave exceeds this limit, it’s automatically converted into cash. Given the proposition of relevant laws governing employee leave in an establishment if you feel it is discriminatory on the part of the Company, you can escalate your grievance before the concerned Labour Commissioner or the Chief Inspection, Shops & Establishment for the redressal of your grievance provided you are a workman as defined under Section 2(s) of the Industrial Disputes Act. You can simultaneously file an application under Section 33C(2) of the ID Act before the Labour Court concerned claiming your dues(leave encashment) from the employer/Company along with interest. Further, SAMADHAN Portal was launched by the Ministry of Labour and Employment to facilitate the filing of industrial disputes by the workmen, employers and trade unions under the Industrial Disputes Act, 1947. The online portal has a user-friendly interface and has enhanced transparency and efficiency of grievance resolution for all stakeholders. The workmen/trade unions/management can file their disputes and claims by logging into the portal through the UMANG app and also by visiting the nearest Common Services Centres. But, if you are holding the position of Manager or Administrator in the Company, you have to file a civil suit against the Company before the Civil Court seeking appropriate relief in the matter. If required, hire an Advocate experienced in service matters to navigate the issue in the right way.