The new labour code allows employees to claim earned leave after 180 days and introduces annual encashment of unused leaves. These benefits apply to workers earning under Rs 18,000 monthly, excluding managerial staff. Unapproved leaves must be carried forward, ensuring no loss of entitlement. Sonakshi Das, Partner, JSA Advocates & Solicitors, says that these concepts of earned leave carry forward, accumulation and exit-based encashments traditionally existed, and continue to exist, under the local shops and commercial establishment legislations (S&E Acts) applicable at the State level, and even under the previous regime of the Factories Act, 1948. According to Das, the key to note here is that, the OSH Code (new labour code) does not subsume the State level S&E Acts which continue to remain in force as on date both legislations i.e. the applicable S&E Acts and the OSH Code, are to be read together, and harmoniously interpreted.
The article was authored by Sonakshi Das, Partner, was published in The Economic Times and Times Now.
Sonakshi is part of the firm’s Labour & Employment Practice, and she focuses on employment, labour and industrial laws and related issues, including privacy, data protection and compliance investigations as they relate to the workplace.