Hi I work for BPO in Mumbai. I have some queries about leave policy governing the companies in Maharashtra. But my main query is which is the law that these corporate companies need to follow in Maharashtra? If a BPO which has a strength of more than 800 employees is to draft a policy governing the leaves for its employees, which rule book should it follow? Should it follow the FACTORIES ACT 1948 or MAHARASHTRA FACTORIES RULE 1963? Or is there any other law like corporates act or BPOs act which a BPO should adhere to while outlining its leave policy for the employees? Once I get a clarity on this I will be able to put forth some more questions which I have about the compensatory off policies of companies in Maharashtra.
From India, Thane
From India, Thane
Dear Andrey,
It is falls under " The Shops & Establishment Act. 1948" & rules of leave under the said as given below.
Chapter: Leave with Pay and Payment of Wages
Section 35: Leave
[(1) (a) Subject to the provisions of clause (b), every employee who has been employed for not less than three months in any year, shall for every 60 days on which he has worked during the year be allowed leave, consecutive or otherwise, for a period of not more than five days.
(b) every employee who has worked for not less than two hundred and forty days during a year [irrespective of the date of commencement of his service,] shall be allowed leave, consecutive or otherwise, for a period of not less than twenty-one days :Provided that such leave may be accumulated up to a maximum period of forty-two days. Explanation : The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days
during the period of such leave, on which a shop, or commercial establishment remains closed under sub-section
(1) of section 18, or on which he is entitled to a holiday under sub-section (1) of section 24 or section 31.]
(2) If an employee entitled to leave under sub-section (1) [or (1-A)] is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect of the leave.
(3) If an employee entitled to leave under sub-section (1) [or (1-A)] is refused the leave, he may give intimation to the Inspector or any other officer authorised in this behalf by the [State] Government regarding such refusal. The Inspector shall enter such intimation in a register kept in such form as may be prescribed. [The employee shall also send a copy of such intimation to his employer and , thereupon, the employee shall be entitled to carry forward the unavailed leave without any limit.]
(4) Notwithstanding anything contained in this section, every employee, irrespective of his period of employment , shall be entitled to additional holiday on the 26th January, [1st May, 15th August and 2nd October every year. For holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding overtime), which he earns during the month in which such compulsory holiday falls. Provided that the employer may require any employee to work in the establishment on all or any of these days, subject to the conditions that for such work the employee shall be paid double the amount of the daily average wages and also leave on any other day in lieu of the compulsory holiday.]
Chapter: Leave with Pay and Payment of Wages
Section 36: Pay during leave
Every employee shall be paid for the period of his leave at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of overtime.
Chapter: Leave with Pay and Payment of Wages
Section 37: Payment when to be made
An employee who has been allowed leave under section 35 shall, before his leave begins, be paid half the totalamount due to him for the period of such leave.
From India, Mumbai
206It is falls under " The Shops & Establishment Act. 1948" & rules of leave under the said as given below.
Chapter: Leave with Pay and Payment of Wages
Section 35: Leave
[(1) (a) Subject to the provisions of clause (b), every employee who has been employed for not less than three months in any year, shall for every 60 days on which he has worked during the year be allowed leave, consecutive or otherwise, for a period of not more than five days.
(b) every employee who has worked for not less than two hundred and forty days during a year [irrespective of the date of commencement of his service,] shall be allowed leave, consecutive or otherwise, for a period of not less than twenty-one days :Provided that such leave may be accumulated up to a maximum period of forty-two days. Explanation : The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days
during the period of such leave, on which a shop, or commercial establishment remains closed under sub-section
(1) of section 18, or on which he is entitled to a holiday under sub-section (1) of section 24 or section 31.]
(2) If an employee entitled to leave under sub-section (1) [or (1-A)] is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect of the leave.
(3) If an employee entitled to leave under sub-section (1) [or (1-A)] is refused the leave, he may give intimation to the Inspector or any other officer authorised in this behalf by the [State] Government regarding such refusal. The Inspector shall enter such intimation in a register kept in such form as may be prescribed. [The employee shall also send a copy of such intimation to his employer and , thereupon, the employee shall be entitled to carry forward the unavailed leave without any limit.]
(4) Notwithstanding anything contained in this section, every employee, irrespective of his period of employment , shall be entitled to additional holiday on the 26th January, [1st May, 15th August and 2nd October every year. For holiday on these days, he shall be paid wages at a rate equivalent to the daily average of his wages (excluding overtime), which he earns during the month in which such compulsory holiday falls. Provided that the employer may require any employee to work in the establishment on all or any of these days, subject to the conditions that for such work the employee shall be paid double the amount of the daily average wages and also leave on any other day in lieu of the compulsory holiday.]
Chapter: Leave with Pay and Payment of Wages
Section 36: Pay during leave
Every employee shall be paid for the period of his leave at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of overtime.
Chapter: Leave with Pay and Payment of Wages
Section 37: Payment when to be made
An employee who has been allowed leave under section 35 shall, before his leave begins, be paid half the totalamount due to him for the period of such leave.
From India, Mumbai
Beauty. My employer who is in thane and not exactly mumbai, are they as well governed by the shops and establishments act bombay 1948.
From India, Thane
From India, Thane
Section one of the Act clearly states that it extends to the whole of Maharashtra.
You may want to engage with a Labour Law consultant to help you get your BS&E compliance straightened out and in place.
It is imperative to have that compliance followed to the T.
From India, Mumbai
You may want to engage with a Labour Law consultant to help you get your BS&E compliance straightened out and in place.
It is imperative to have that compliance followed to the T.
From India, Mumbai
Dear Andrey, Yes, it is applicable in Thane too. its comes under "Thane Municiple corporation" - TMC.
From India, Mumbai
From India, Mumbai
Thank you for the precise answer. Now to tell the fact, I have been always deprived of compensatory off, though I have worked on public holidays. Management is not willing to accept its fault. I am fully prepared to take this to the next step. Going legally can some one tell me who will be my next point of contact. Should I contact 'Conciliation Officer' or labour office or directly approach tribunal. I am absolutely hopeless with the legality of these things, but I am confident that I am on the right side of the case and the management is on the wrong.
So the only 2 questions which I am really asking is :
1.) Will industries disputes act be applicable for a BPO in thane?
(Going by the term industries, is BPO an industry? If industrial disputes act can be relied upon, I an agent in a BPO, will I be considered as a workman?)
2.) What will be the path to follow to raise a dispute? Do I contact a labour lawyer or do I directly approach an officer in a legal institution. And what happens there after, in the sense how will the case proceed?
Is there a case study which I can go through which relates to a case where an employee has put a case against the employer for not giving leaves? If yes please provide the link or upload a document for the same.
Thank you
From India, Thane
So the only 2 questions which I am really asking is :
1.) Will industries disputes act be applicable for a BPO in thane?
(Going by the term industries, is BPO an industry? If industrial disputes act can be relied upon, I an agent in a BPO, will I be considered as a workman?)
2.) What will be the path to follow to raise a dispute? Do I contact a labour lawyer or do I directly approach an officer in a legal institution. And what happens there after, in the sense how will the case proceed?
Is there a case study which I can go through which relates to a case where an employee has put a case against the employer for not giving leaves? If yes please provide the link or upload a document for the same.
Thank you
From India, Thane
Ok. First things first. I am assuming you are part of HR for your company. Why do you want to go against the mgmt of your company?
You need to understand the laws first and convince your mgmt that they need to follow the law (for comp offs etc); going forward. It will take some time in policy creation, implementation etc.
Moreover, I am not an expert on labor laws but I am not sure if the ID Act will apply. While technically, there may be some employees who will come under workmen category, I doubt if the Act will apply to the whole of the company.
The way I see it is that this is an opportunity to set the things straight (as far as legality and policy is concerned). Also remember that whatever happened in the past, u will not be change that but u need to plan for how u will manage the HR function in the future.
From India, Mumbai
You need to understand the laws first and convince your mgmt that they need to follow the law (for comp offs etc); going forward. It will take some time in policy creation, implementation etc.
Moreover, I am not an expert on labor laws but I am not sure if the ID Act will apply. While technically, there may be some employees who will come under workmen category, I doubt if the Act will apply to the whole of the company.
The way I see it is that this is an opportunity to set the things straight (as far as legality and policy is concerned). Also remember that whatever happened in the past, u will not be change that but u need to plan for how u will manage the HR function in the future.
From India, Mumbai
I am an employee of the organisation. Not an HR executive. I have clearly stated that I am an agent, just an employee who has been working for the company for past 4 years.
From India, Thane
From India, Thane
Hi HR Friends,
Reg. Compensatory Off
Here the employee has worked on certain holidays in addition to working days. Under Factories Act, he is entitled to avail C-Off within 2 months. Employee to produce relevant Acts to his superior and solve the issue. The Superior will understand that once a persons service is used for work on Sunday/ Holiday, he should not be denied a day of rest and is compensated as C-Off.
Trust, the Superior will be convinced of Statutory Obligations on the part of Employer and the matter will be sorted out without legal complications.
Further, even the Superior; being a Human being will also require a rest day when he has worked continously for longer days to take care of his health. The various Labour Acts are made to protect the Health and welfare of all and it must be respected and honoured.
Ex-AGM-HR&A , HR Consultant & Advocate 9341111972
From India, Bangalore
Reg. Compensatory Off
Here the employee has worked on certain holidays in addition to working days. Under Factories Act, he is entitled to avail C-Off within 2 months. Employee to produce relevant Acts to his superior and solve the issue. The Superior will understand that once a persons service is used for work on Sunday/ Holiday, he should not be denied a day of rest and is compensated as C-Off.
Trust, the Superior will be convinced of Statutory Obligations on the part of Employer and the matter will be sorted out without legal complications.
Further, even the Superior; being a Human being will also require a rest day when he has worked continously for longer days to take care of his health. The various Labour Acts are made to protect the Health and welfare of all and it must be respected and honoured.
From India, Bangalore
Dear Andrev,
Lets clear your points as you asked...
First of all, you can not file case in labour court or under ID act. as your nature of work is not as worker or labour.
But, you can file a case under Industrial Tribunal under EMPLOYMENT AND INDUSTRIAL RELATIONS ACT. OR in Civil Court.
As asked by you whether should you hire advocate or not..? so, before that, i would suggest you that, before hiring any advocate, first find out what is the ration of claim of compensation amount, if it goes beyond advocate fees then, there is no meaning to fight this case, you shall be in lose.
From India, Mumbai
Lets clear your points as you asked...
First of all, you can not file case in labour court or under ID act. as your nature of work is not as worker or labour.
But, you can file a case under Industrial Tribunal under EMPLOYMENT AND INDUSTRIAL RELATIONS ACT. OR in Civil Court.
As asked by you whether should you hire advocate or not..? so, before that, i would suggest you that, before hiring any advocate, first find out what is the ration of claim of compensation amount, if it goes beyond advocate fees then, there is no meaning to fight this case, you shall be in lose.
From India, Mumbai
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