LOP vs Leave Encashment

4 years ago

I have recently resigned from an organization - an IT company. One surprising fact has caught my eyes and I am trying to understand the legitimacy of the same - 1. LOP - They deduct LOP on monthly basis. e.g. In the month of Aug, 2018 there were 22 working ( calendar days - public holidays - week offs) days and 31 calendar days. If my GROSS salary is 100000 and I had to take leaves for 2 days they would pay me for 20 working days (22-2). i.e. (100000/22)*20. 2. Leave Encashment - they encashed my PL (Privileged Leaves) at the time of separation. However, here they are calculating the same on calendar days, only basic and DA component. e.g if my basic + DA is 50000, And I had a leave balance of 5 days they are encashing me (50000/30)*5. How can both of the above two scenarios be correct at the same time? When week offs, holidays and leaves are mandated by Shops and Establishment Act, how a company can pay wages ONLY for the working days! Looking for your advise on the same.