Leave Policy - Rightsofemployees.com

This special policy of LIC has come, life-long earning opportunity, know full plan

RightofEmployees — Thu, 27 Aug 2020 13:26:05 +0000

LIC Pension Policy: The name of the policy is Jeevan Akshay-7 (Plan Number 857). This is an annuity plan, because of this the investor gets a chance to earn a lifetime.

LIC Pension Policy: Life Insurance Corporation of India is one of the most trusted and large insurance companies in the country. In the policy of this company, crores of people have invested their hard and thick earnings. People trust this company because it is run by the government. In view of this belief, LIC has launched another policy.

The name of the policy is Jeevan Akshay-7 (Plan Number 857). This is an annuity plan, because of this the investor gets a chance to earn a lifetime. Actually it is a single premium non-linked policy. That is, in this policy, the investor has to invest only once and he gets the benefit throughout the life

It is a non-linked policy so it has no relation with market fluctuations. It is a non-participating and personal annuity scheme. Policyholders get annual, half-yearly, quarterly and monthly annuity options under it.

The policy holder can choose one of these options according to his convenience. According to the policy rules, the minimum annuity is fixed at Rs 12,000 per annum.

The minimum sum assured of the policy is one lakh rupees while there is no maximum limit. People between 30 and 85 years of age are considered eligible for investment in this policy. The special thing is that in this policy, the investor will also get loan facility.

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Encashment Of Leave

Rightsofemployees — Fri, 24 Apr 2020 07:01:56 +0000

Leave Encashment

The rules for encashment of leave shall cover all regular employees of the company, excluding those on deputation from Government / other organizations and company employees on deputation to others.

The authorities who are Competent to sanction leave shall be the sanctioning authority for approving encashment of leave under these rules.

Encashment Benifits:

The encashment of leave shall be regulated on the basis of the last pay drawn which includes basic pay, dearness allowance, personal pay.

2. The encashment benefit shall not be reckoned as Wage / Salary while working out overtime, Gratuity, Provident Fund, bonus under the Bonus Act, etc.

Clarification:

The leave to be encashment under these rules would be Earned Leave only and not any other kind of leave.

The encashment benefit will be regulated on the basis of the last pay drawn which should be the monthly
rate of pay of the employee immediately before proceeding on leave. A month will generally a calendar
month of 30 days.

Illustration :

Last pay drawn X no. of days for which encashment allowed ________________________________________________ 30

ELIGIBILITY:

WHILE IN SERVICE

Earned leave standing to the credit of an employee may be encashed at his option only once in a calendar year provided that the quantum of leave to be encashed in each case is not more than 50% of the Earned Leave at credit or 30 days earned leave whichever is less.
An employee who is released on acceptance of his/her resignation shall be allowed encashment of Earned Leave standing to his/her credit as on the date of release, after adjusting the notice period not served if any.
The trainees are allowed to encash unavailed Leave with Full Stipend at the time of completion of their training. In calculating the period of Leave with Full Stipend, all holidays and off-days whether occuring during or end of the period shall be excluded.

ON DISMISSAL OR REMOVAL :

The encashment of leave will not be admissible on dismissal or removal from service of an employee. In case of termination simplicitor, an employee will be eligible for encashment of earned leave as per rules above.

ON RETRENCHMENT:

The employee shall be paid leave salary in lieu of earned leave due to him.

ON RETIREMENT:

If any leave due to an employee is not utilised, he shall be allowed to encash the unavailed portion of the earned leave.

ON DEATH :

The leave salary in respect of earned leave standing to the credit shall be paid to the nominee(s) declared for receiving the Provident Fund and Gratuity or in the absence of nominee to his legal heir(s).

PROCEDURE :

For leave encashment under rule-while in service, an employee shall be required to apply in writing to the sanctioning authority. In all other cases it shall be settled by appropriate authority.

Tax on Leave Encashment:

Government Employee: The entire amount received as leave encashment is tax free.

Non Government Employee:

The leave encashment for private sector employees is stated in Section 10 (10AA) and is minimum of the following 4 factors:

Amount received as leave encashment
Maximum cap as stated by government – Rs 3 Lakhs
Last 10 months average basic salary & dearness allowance before leaving the job
Cash equivalent of the leave balance, subject to maximum of 30 days for each completed year of service

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Rights of Employees

Rightsofemployees — Mon, 29 Jan 2018 12:34:00 +0000

Ten basic rights of an employee in India

1. Leave is the right of all employees

Generally, an employee is given the following leaves during the course of his or her employment:

1. Casual Leave: This is provided to an employee to take care of urgent or unseen matters like a family emergency; for example, employees can apply for casual leave to attend a parent-teacher meeting called for by their child’s school.
Sick Leave: Sick leave is provided when an employee gets sick.
Privilege or Earned Leave: Privilege or earned leaves are long leaves that are planned for in advance.
Other Leaves – Apart from the above mentioned leaves, there are some other paid, unpaid or half-paid leaves which are provided at the discretion of the company. Study leave and bereavement leave are two such examples.

Medical Certificate for one-day sick leave

Usually, when a sick leave exceeds beyond two or three days, depending upon the company policy, employees are requested to submit a medical certificate to sanction the leave. However, in the case of one-day sick leave, an employer should not ask for a medical certificate.

In one of its judgements, the Supreme Court mentioned that an employee will not necessarily seek medical attention if he or she is ill for just a day.

Encashment Leave

An employee can take encashment leave while quitting service, superannuation, discharge, dismissal or death. Leave encashment should be as per average daily wages of an employee.

Type of Leave	Privileged / Earned	Casual	Sick	Maternity
Quantum per year	1 day leave for every 20 days worked in the previous year (Eg. 300 days worked = 15 days leave)	Nil	Nil	As per ESI Act OR Maternity Benefits Act
Entitlement	On working 240 days in the first previous year	NA	NA	NA
Utilization	To apply for leave 15 days prior. Leave not to be availed more than 3 times a year	NA	NA	NA
Carry Forward	Not more than 30 days	NA	NA	NA

Leave during notice period

An employee can take leave during notice period, provided it is for a genuine reason like maternity, health issues, etc.

The Delhi High Court, in one of its judgement, said that an employee can take leave during the notice period if nothing is mentioned in the appointment letter which bars the employee from taking leave during the notice period, if he has leave to his credit and is entitled to the same.

2. Protection from sexual harassment at the work place

It is the responsibility of the employer to ensure that his/her employees, especially female employees, are protected while at work. All incidents of sexual harassment – regardless of how big or small they are or who is involved – require employers or managers to respond quickly and appropriately. Just because someone does not object to inappropriate behaviour in the workplace, it does not mean that they are consenting to the behaviour.

An aggrieved woman can seek remedy under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Sexual harassment is punishable under the Indian Penal Code

The law mandates employers to formulate a policy which prohibits sexual harassment. The policy should be a part of the company’s service regulations to provide a healthy working environment. The company’s policy must clearly define what exactly constitutes a sexual harassment and enumerate penalties, online grievance redressal procedures as well as additional resources like a list of individuals to be contacted for consultation, etc. The policy should also ensure impartiality in investigation.

The law outlines the structure of an internal complaint committee for organisations with ten or more employees and instructs the formation of a district level local complaint committees for other organisations.

All offices, hospitals, institutions and other establishments should set up an internal complaint committee. The employer should nominate the committee members and constitute the committee. The committee should also include a senior woman as a member, two other employees as members and a non-governmental member.

At the district level, the District Officer (normally the Collector), an officer as authorized under the act, should constitute a Local Complaints Committee.

A Nodal Officer will also be nominated by the District Officer for each block, municipality or tribal area to receive complaints and to forward them to the respective local complaint committee within seven days.

3. Maternity benefit

The Maternity Benefits Act, 1961 (MBA) was enacted with respect to employment of pregnant women in establishments.

Earlier, the law mandated that a female worker was entitled to a maximum of 12 weeks (84 days) of maternity leave. Of these 12 weeks, six weeks leave are for post-natal leave.

Employees are also entitled to one additional month of paid leave in case of complications arising due to pregnancy, delivery, premature birth, miscarriage, medical termination or a tubectomy operation (two weeks in this case).

With new amendments made to the Maternity Benefits Act, 1961, the paid maternity leave has been extended from 12 weeks to 26 weeks for women working in the private sector.

No employer can employ a woman in the six weeks following the date of her delivery or miscarriage. It is also illegal to discharge or dismiss her on account of such an absence.

Employees cannot be discharged or dismissed while on maternity leave, nor can there be any disadvantageous change to their conditions of employment. This can be overruled in cases of gross misconduct or if employees take up work for another establishment during their leave.

It is important to note, however, that pregnant employees who are discharged or dismissed may still claim maternity benefit from the employer.

4.Gratuity

Gratuity is a statutory right of employees and cannot be denied to them on the grounds that they are being given provident fund and pension benefits. Gratuity is a statutory benefit paid to the employees who have rendered continuous service for at least five years.

It is a lump-sum amount paid to an employee based on the duration of his total service. The benefit gratuity is payable to an employee on cessation of employment either by resignation, death, retirement or termination, by taking the last drawn salary as the basis for the calculation.

Gratuity is an important form of social security and is looked at as a gesture of gratitude by the employer to the employees, paid for in monetary terms, for the services rendered by them to the organization. It is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee upon leaving his job. Gratuity payment liability of the employer tends to increase with an increase in salary and tenure of employment.

5.Provident Fund

Employee’s Provident Fund (EPF) is a retirement benefit scheme that’s available to all salaried employees. It is managed by the Employee Provident Fund Organisation of India and any company with over 20 employees is required by law to register with the EPFO.

As per law, both, the employer and the employee have to contribute 12% of their basic salary to the provident fund. If any employer is deducting the whole PF contribution from an employee’s salary then it is against the Act, and he can apply against the same in the PF Appellate Tribunal.

Is it necessary to contribute to PF?

If you earn more than Rs 15,000/- a month, you can always opt out of contributing towards EPF. However, you need to opt out of it at the start of your career. If you have been a part of EPF even once, then you are not allowed to stop contributing.

6. Working Hours

The Shop and Establishments Act of every state has fixed the maximum no. of working hours 9 hours a day and 48 hours a week. The Shops and Establishment act does not see any difference between managerial and nonmanagerial workers when it comes to regulations relating to working hours. The working hours may be increased up to 54 hours a week upon prior notice to the Inspector, but this increase would be subject to a condition that overtime hours should not be more than 150 in one year.

7. Right to get Insurance

Every employee will have the right to be insured by the employer under the Employee State Insurance Act 1948, in case of any kind of injury or miscarriage occurring during the course of employment.

8. Right to go on Strikes

The employees are provided with the right to go on a strike without giving a notice, however if the said employee is a public utility employee, then he would be bound by the prohibitions laid down in the Industrial Disputes Act 1947, Section 22(1) lays down certain conditions on Strikes by public utility employees, the conditions includes giving out prior notice to the employer six weeks before going on such strike.

9. Right to Equal Pay for Equal Work

Equal pay for Equal work is a constitutional right and any employer is liable to pay equally to any men, women or temporary staff performing same tasks and undertaking same responsibilities. There can be no discrimination while paying any basis to employees.

10. Written employment agreement

An employer must provide a written Employment Agreement before you start work.

An Employment Agreement is a legal document, which contains the ‘terms and conditions’ of your employment. It lists the rights and obligations of both, the employer and the employee, and is designed to give both parties security and protection.

By law, your employer must give you a written Employment Agreement before you start work.

The Importance of an Employment Agreement

An Employment Agreement gives both parties a sense of security that both are fully aware of their obligations and have agreed to comply with the stated terms and conditions.

A professionally well-drafted Employment Agreement endeavours to prevent disputes between employers and employees, and in the event of any dispute, it serves to resolve the dispute because all terms of employment are clearly mentioned in it.

You have the right to get advice on an Employment Agreement before you agree to it or sign it.

It is a good idea to spend some time carefully thinking about the conditions of the Agreement. If in doubt, seek professional help.

Understanding your rights as an employee is the first step.

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Annual Leave and Holidays in India

Rightsofemployees — Sun, 28 Jan 2018 08:16:20 +0000

Annual Leave and Holidays

Paid Vacation / Annual Leave

The Factories Act has provided annual/earned leave of 12 working days for all the workers who have worked at least 240 days in a year. However, the duration of earned/annual leave differs for the adult and young workers. An adult worker is entitled to one day of earned leave for every 20 days of service while a young worker (under the age of 15 years) is entitled to one day of earned leave for every 15 days of service. Thus, the annual leave duration is 15 working days and 20 working days for adult and young workers respectively.

Workers are paid their usual daily wage rates for the days of earned leave. A worker is paid his full daily wages during the term of annual leave. Daily wages are the average of his total full time earnings for the day on which he actually worked during the months immediately preceding his leave, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of advantage accruing through the concessional sale to the worker of food grains and other articles.

If a worker takes four or more days’ leave at a time, his wages are paid before the leave begins. The employer, the works committee and the Chief Inspector of factories determine the schedule of leaves by mutual consensus to ensure continuity of work. A worker may take all or portion of annual leave provided that he/she notifies the employer in writing at least 15 days prior to the date of availing annual leave and such request may not be refused unless it contradicts with the scheme of leave already agreed. Even when in portions, annual leave cannot be taken more than three times a year.

Annual leave may be carried over however no more than 30 days can be carried over to the next year. If the employment contract expires before a worker could take annual leave, compensation for leave is made in proportion to the number of months and numbers of hours worked in a week.

Pay on Public Holidays

Workers are entitled to paid days-off during Festival (public and religious) holidays. These include memorial holidays and religious holidays.

There are many festival and religious holidays in India however only three of these are fully covered national public holidays. These are Republic Day (January 26), Independence Day (August 15) and Mahatama Gandhi’s Birthday (October 2). ( National and Festival Holiday Act & www.qppstudio.net)

Weekly Rest Days

The Factories Act provides provision on weekly rest. Workers are generally entitled to at least 24 hours of weekly rest on the first day of the week, i.e., Sunday. The weekly rest period is reckoned as a paid time.

Workers may be required to work on weekly holiday; in this case, he/she is entitled to the substitute holiday three days before or after the usual weekly holiday. Even in the case of holiday substitution, workers must be given a weekly holiday in every 10 days. If an organization is exempted from the provision related to weekly holiday and workers are not granted their weekly holidays, an equal number of compensatory holidays have to be granted within 2 months.

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Gratuity

Rightsofemployees — Sun, 28 Jan 2018 03:02:46 +0000

Provisions for the payment of Gratuity to the employees as prescribed under the Act

Gratuity Benefits in India:Payment of gratuity Act 1972 extends to the whole of India and is applicable to all factories, mines, oilfields, plantations, ports, railway companies etc.

Payment of Gratuity to employees a statutory duty on an employer

The Payment of Gratuity Act was enacted in 1972 and applies to every shop or establishment within the meaning of law for the time being in force in a State in which 10 or more persons are employed or were employed on any day of the preceding 12 months. This Act provides a social security cause with it and has been enacted from the word “gratuitous”. It is a form of gratitude by the employer towards the employee who has served his organisation for 5 years or more.^[1]

Gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than five years – (a) On his superannuation, or (b) On his retirement, resignation, or (c) On his death or disablement due to accident or disease. An employer will be liable to pay gratuity to the legal heirs/nominees of the deceased employee even if the employee had not completed five years of service. For every completed year of service or part thereof in excess of six months the employer shall pay the gratuity.

Continuous Service Means:

Section 2A of the Act provides the definition of “continuous service” which says that service been uninterrupted for that period, interruption which may on account of sickness, accident, leave, absence from duty without leave not being absence in respect of which an order treating the absence as break in service has been passed. For the period of one year employee is deemed to have rendered continuous service for 240 days.

Formula for the calculation of Gratuity:

Gratuity = Last drawn month’s salary x 15days

_____________________ x Number of service years completed

Gratuity is calculated at 15 days wages last drawn by the employee for each completed year of service. The monthly wage is divided by 26 and multiplied by 15. In computing a completed year of service the period in excess of six months shall be taken as a full year.

For seasonal workers the formula for the calculation of gratuity is

Gratuity = Last drawn month’s salary x 7days

_____________________ x Number of service years completed

Maximum amount of gratuity payable under the Act is Rs. 10 lakhs ^[2] w.e.f. January 1, 2007.

Forfeiture of Gratuity:

The gratuity payable to an employee shall be wholly forfeited for the following reason mentioned:

If the service of such employee has been terminated for his riotous or disorderly conduct or any other act of violence on his part; or
If the service of such employee is terminated for any act which constitutes an offence involving moral turpitude provided that such offence is committed by him in the course of his employment. In order to forfeit gratuity of an employee, there must be termination order containing charges as established to the effect that the employee was guilty of any of the aforesaid misconducts. In one case, it has been held that in the absence of termination order containing any of the above allegations, the gratuity of an employee cannot be forfeited.

Duty of employer to pay gratuity and mode for payment:

Section 4 of the Act mentions the obligation on an employer of an establishment to consider the case of each employee in the matter of payment of gratuity to him. The employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes payable to the person to whom the gratuity is payable. If the amount of gratuity payable under the section is not paid by the employer within the period specified, from the date on which the gratuity becomes payable he will have to pay simple interest on it at the rate not exceeding the rate notified by the Central Government from time to time.

The mode for the payment of gratuity is prescribed under section 9 of the Payment of Gratuity Act, 1972. The said section contemplates that gratuity payable under the Act should be paid in cash, or if so desired by the payee, by demand draft or bank cheque to the eligible employee, nominee or legal heir, as the case may be.

Penalties:

Imprisonment for 6 months or fine upto Rs. 10,000 fir avoiding to make payment by making false statement or representation
Imprisonment not less than 3 months and upto one year with fine on default in complying with the provisions of Act or Rules

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Maternity benefit (amendment) act-2017

Rightsofemployees — Sat, 27 Jan 2018 02:38:05 +0000

Maternity benefits (amendment) act 2017 – The Big Change

The benefits under the Maternity Benefit Act are available to all female employees, who are not covered under the Employees’ State Insurance Act and have worked for a continuous period of 80 days in twelve months immediately preceding the date of her expected delivery.

Maternity benefits act 2017 – This amendment has increased the duration of maternity leave available for women employees from the existing 12 weeks to 26 weeks.

Rs. 3,500 per maternity Current provision of maternity bonus.

A woman shall, on production of such proof as be entitled to leave with wages at the rate of maternity benefit, for a period of six weeks immediately following the day of her miscarriage.

Women employee should be permitted to visit the crèche 4 times during the day, which includes the regular rest interval .

Penalties for contravention of the act by Employers; Imprisonment which shall not be less than three month, which may extend up to one year and with fine not less than two thousand rupees, which may extend up to five thousand rupees.

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Leave Policy in India

Rightsofemployees — Fri, 26 Jan 2018 16:25:36 +0000

Numbers of leaves entitlement in a company depends upon state you are in. Every state has different leave entitlement and leave policies which should be seen before one defines leave policy of your company. Leave policy of a company cannot be less than that mentioned by the State’s shop and establishment act.

Earned Leave

This is a paid leave earned by employees during a year and availed in the subsequent year. If the number of earned leave is over, the day is considered as an unpaid leave and the day’s pay is cut from the salary. These leaves can also be en-cashed while leaving the company. The following are number of earned leaves according to laws:x

Factory workers need to work minimum 240 days in the organization in a year to be eligible for earned leave. Adults get 1 day for every 20 days, and children, below the age of 15, get 1 day for every 15 days work in the previous year.
Mine workers below the ground can avail 1 day for every 15 days work; and those working above the ground can avail 1 day for every 20 days work.
Workers in a Bidi or Cigar factory get 1 day leave for every 20 days work in the previous year. If the worker is a child of below age 15, he gets 1 day off for every 15 days of work.
People working in sales, and newspaper running company (which includes journalists) can avail one month earned leave for every 11 months of work.
Domestic workers are also eligible for 15 days earned leave in a year.

Casual Leave

This is another paid leave that although not earned, is entitled to employees only if prior permission is granted by the organization. If the employer does not grant permission and the employee nevertheless takes a leave, the day’s pay is cut from the salary. Usually every organization allows a certain number of casual leaves in a year, which is fixed by the company’s administration. Although, there is laws for certain types of workers:

Sales and newspaper employees (including journalists) are entitled 15 days of casual leave in a year
Apprentices are entitled annually 12 days casual leave

Sick/Medical Leave

Employers provide sick leaves to employees when they are ailing. Some organizations ask for a medical certificate to grant sick leave. Others don’t deem in necessary. If the employee has used up all his sick leaves, the company uses his earned leaves. Sick leaves can also be carried forward to the next year. The specifications are although determined by the company’s administration. Laws governing sick leaves for different types of employees are:

Apprentices are entitled for 15 days of sick leave in a year. This can be accumulated to a maximum of 40 days.
Journalists and Newspaper employees can avail medical leave of one month for every 18 months of work. During the medical leave, the employees are paid half the day’s pay.
Sales employees are entitled to medical leave similar to that of newspaper employees. They although mandatorily need to show a medical certificate for their absence.

Maternity Leave

Female employees, as per law, are entitled to 3 months or 12 weeks of leave when she is pregnant. During this time, employers will have to pay their female employees normally.

Paternity Leave

Male employees who are soon to become fathers can avail upto 15 days of leave within 6 months of their wife’s date of delivery.
Apart from these, there are others paid, unpaid or half-paid leaves like Study Leave, Bereavement Leave and Leave for Voting. These although are left at the organization’s discretion.

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