We have a doubt which we need you to help us with.
To tackle the issue of paid/earned leave, we have thought of deducting leave when taken, but paying the leave salary at the end of every 3 months. Considering the person is entitled for 30 days leave, his leave and leave salary will be split 8+8+8+6 every quarter. Salary slip will be modified to show 8 leave per quarter with 0 leave availed. So in this case every leave taken during the year will be deducted in each salary but we are paying leave salary every quarter.
If we proceed as such, do you forsee a problem from any legal angel? Do we fulfill
1) Leave entitlement
2) Leave Encashment
3) Monthly salary
From India, Mumbai
To tackle the issue of paid/earned leave, we have thought of deducting leave when taken, but paying the leave salary at the end of every 3 months. Considering the person is entitled for 30 days leave, his leave and leave salary will be split 8+8+8+6 every quarter. Salary slip will be modified to show 8 leave per quarter with 0 leave availed. So in this case every leave taken during the year will be deducted in each salary but we are paying leave salary every quarter.
If we proceed as such, do you forsee a problem from any legal angel? Do we fulfill
1) Leave entitlement
2) Leave Encashment
3) Monthly salary
From India, Mumbai
421
The above proposal of deducting salary then and there for the leave availed in a month but paying it later at the end of the quarter seems to be against the welfare provision for annual leave with wages based on the ratified ILO convention. Earned Leave is not just a monetary concept to raise the earnings of the employees. Its primary objectives are (a) to keep the employees away from the monotony of work environment (b) to allow the employee to have enjoyment of hassle-free leisure lasting for some longer stretch of duration without loss of earnings and discontinuity of service.(c) to provide the employees the oppurtunity of better work-life balance (d) to increase their levels of productivity by providing them with rest, recreation and recuberation through annual leave etc,. Preference for encashment in lieu of leave by employees every month is a matter of practical and financial convenience. But, regularisation of the period of absence as leave on loss of pay, seems to me, unethical and inappropriate even if not illegal.
From India, Salem
From India, Salem
Hello Sunilkarn,
Can you clarify the reason(s) WHY this model is being suggested @ your Company?
Prima facie, looks as though you are about to complicate the EL framework while trying to resolve some issues that you are facing.
Rgds,
TS
From India, Hyderabad
Can you clarify the reason(s) WHY this model is being suggested @ your Company?
Prima facie, looks as though you are about to complicate the EL framework while trying to resolve some issues that you are facing.
Rgds,
TS
From India, Hyderabad
Hi Sunil,
If you think that this will help the HR in the process, actually it's getting tedious...
Calculating those things once a year is itself tedious, you are to ask them to do so four times a year...
Apart most of the companies follow calendar days for leaves so that they can get over with the calculations and stuffs before March ending process so that financial ending do not clash...
Another thing...
In this process, even the employee will get confused what is happening...
Any particular reason as to why is this change brought?
Is there a management who wants to emphasize on this change?
Or is this just your opinion?
Or is this requested from employees side?
How has this thing come to you?
From India, Mumbai
If you think that this will help the HR in the process, actually it's getting tedious...
Calculating those things once a year is itself tedious, you are to ask them to do so four times a year...
Apart most of the companies follow calendar days for leaves so that they can get over with the calculations and stuffs before March ending process so that financial ending do not clash...
Another thing...
In this process, even the employee will get confused what is happening...
Any particular reason as to why is this change brought?
Is there a management who wants to emphasize on this change?
Or is this just your opinion?
Or is this requested from employees side?
How has this thing come to you?
From India, Mumbai
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Karnataka Leave.xlsx
LEAVE APPLICATION.doc