02 November 2013
Thanks for looking into my question .
What will happen in case of the concerns to whom Factories Act do not apply ?
If a company is dealing purely in service industry , which act is to be taken as base for calculating amount of leave encashment for contractual employees ?
Provision of leave depends upon the applicable laws e.g. the industry/location, factories act if yours is a factory, Local Shops and establishment act if its an establishment.
It is calculated on wages as per Minimum wages Act hence Basic + DA is to be considered.
Pl refer file for calculation: https://www.caclubindia.com/share_files/leave-encashment-calculator-51638.asp
CAclubindia
