Hi, I want to understand the applicable rules for the following: 1) What is the rule for minimum allowed leaves for an employee working in an IT company in Noida? My company allows (6 Sick Leave and 6 Casual Leave) in a year. As per my understanding state specified Shop and Establishment Act is applicable to all private companies, where they should be providing a minimum of 1.5 Leaves per month. 2) Is it legal to deduct salary at a different rate and pay at a different rate for the same salary component (in my case leave)? If an employee takes additional leave than allowed, my company deducts the salary on the gross rate. But If an employee saves the leave it will be paid at the rate of the basic salary as per my company rule. Is it correct? What legal option I have. Need clarification on the above matter to understand my rights and applicable laws on employee and employer.
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
1) 1.5 leave ls into 12 months it will come to 18 leaves p.a. In that PL, CL, SL are calculated.
2) when employees resign the balance leave are paid on basic salary. Kindly check appointment letter terms and conditions in that termination clause.
3) Your all questions answer is in the appointment letter terms and conditions.
Normally it depends on the state shop and establishment laws. But the basic is almost same 7 holidays for national and other festivals, 14 days sick leave. Casual leave with a maximum of 3 days in a month. The other leaves are earned leaves.
The policy stated by your company in which deduction is different than payment is unfair. You can challenge it under labour laws
eventually this differentiation is made by most of the companies to pay and to direct the leave of employee.
12 casual leaves are allowed along with 30 paid leaves in an organisation and this is standard. The shops and Establishment Act give some space for the companies to adjust their leave system but not in contrivances to shop and Establishment Act
First see the Leave Rules of the company on which you agreed to work with the company because you have to challenge the rules as a whole , apparently it looks that you are talking regarding EL besides CL & SL so look into first.
2. Encashment of leave paid on the basis of one day rate of an employee after deducting all the statutory dues consisting the salary components (Basic+DA) variable allowance are not made part of this payment so first see and then if there is difference can be challengable before the court.
There is no EL/PL in my company, they only provide 6 CL and 6 SL in a year. And if the employee saves some of the leave they will pay at the rate of basic salary. Also, they apply for sandwich leave so if an employee take leave from Friday to Monday, 4 days leave will be deducted that includes (Saturday and Sunday which is weekly off). This way they are deducting a good amount of salary from employees.
You can file a complaint to office of labour commissioner if you feel aggreived
As your company is working on malicious rules challenge these rules and quote factories act before the Hon'ble High Court , one and more employees can file one writ in the matter.