THE ART OF EFFECTIVE COMMUNICATION: WISDOM IS MEASURED BY UNDERSTANDING, NOT VOCABULARY

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[Adisaya Kumar Y]

Dear Leaders,

 

As you all know that new calendar year began and we are working on closing the leave balance and crediting new leave balance for the calendar year 2026. As per new labour code OHS, it is mentioned that 30 days accumulation of EL is permitted, and beyond 30days need to be encased.

 

May companies are having their internal policy or settlement with union to accumulate more than the law (some companies accumulating more than 90days), in such case, what the organisation need to do in the legal perspective.

 

Can we continue the policy of accumulating the leave as N number of days or we need to encash the EL accumulation beyond 30dys.

 

Lawyers and senior HR professionals, please give your insights in this regard.

 

Thanks,

 

With Best Regards

Adisaya Kumar Y  |  DGM - HR |  Luminous Power Technologies Pvt. Ltd.  

 Mobile: +91 9894249928 | E-Mail : adisaya.kumar@ luminousindia.com| Web: www.luminousindia.com

Address:# Sy.No.150/1A&1B,Gunduguriki road,Nalaganakothapalli,Shoolagiri - Hosur - 635117

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General

[KRISHNAN M.S.]

First of all ,the new code had come and central rules too. However the labour secretary said it may take few more months and rules r expected to be implemented around April 2026.

For Executives and Managers its not any 18(1) or 12(3)its the policy and when the OHS rules says accumulate EL only 30 days and encash to all its better to go for it by changing the policy . Most of the Cos r already following this only even before new Code.

If its by a Settlement if mutually agreed by the Union and the Management the existing practice can be modified in accordance with New OHS Code.

Otherwise wait for the implementation of the OHS code by the respective State Government and once the rule is applicable automatically the payment of excess EL over 30 days will be enforced and the agreement or settlement as per old ID Act becomes null and void with regard to the EL existing practice.

Thanks & Regards,

M.S.KRISHNAN
+91 9944479275

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