Leave Encashment under Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code).

General
1

Our NGO gives 30 days per year leaves to all staff irerespective of designation. We have hirirechy of field Facilitators, Programme Coordinators, Programme Manager and Programme Directors. In that case could you please advise me leave encashment is applicable to whom from the above?

How can we bifurcate the leaves to make it more organised system?

As per our HR Policy we dont allow any carry forward. Could you please advise still we have to encash the leaves?

Delete

2

Thanks for your query.

  1. OSHWC Code mandates 1 Earned Leave (EL) per 20 days worked for a worker, this translates to between 13-18 EL per year depending on how many days an organization considers as days worked. A total of 30 days EL in a calendar year can be carried forward with no maximum ceiling and needs to be encashed on separation.
  2. Worker is defined as an employee not in managerial capacity or administrative capacity or supervisory capacity and drawing Wages upto Rs.18k per month as per OSHWC Code. NPOs do not necessarily distinguish between employee and worker, however, you could restrict EL only to worker basis the definition and not employee as per law.
  3. Please note that the earned leave provisions must comply with OSHWC Code and the state S&E Act since both co-exist unless NPO is excluded from definition of commercial established or exempted in the state S&E Act.
  4. Other than EL, OSHWC does not mandate any other leave type. Other leave type like CL and SL would be covered under state S&E Act and compliance for these leave type maybe done as prescribed in state S&E Act.

CS Sharad Bhargava