one of our employee was suspended in the month of jan 2008 .he was issued chargesheet and
later on domestic enquiry was conducted and final we have terminated his sevices
on 29 nov 2008.my query is how we will claculate his earn leave to pay him leave encashment.
whether he will be eligible for leave during suspension period.we are a factory all leaves are granted as per factories act.
j s malik
We have to see the provisions in your leave rules. Whether an employee under suspension is entitled for earned leave ? Or any other kind of leave ? It may be as per your Standing Orders applicable to the employee or agreement signed by the Management and Union, if any. Factories Act say only about the days of work for earned leave.
Normally, suspension period is not treated as period on duty in case of dismissal or discharge. But in case the charges could not be proved in the domestic enquiry, the employee is reinstated and back wages are paid (minus subsistence allowance already paid)and employee is treated on duty and he is entitled for all benefits. In your case, even though he must have received susbsistence allowance equal to salary/wages after 180 days, he has not actually worked. That means he has not earned any leave.
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