Login

Sign Up

Create an account to access the Law Library, all latest notifications, Minimum Wages & other events.

+91-99910 53587 connect@comply4hr.com
Enquire
Sign In
HOMEMain Page
eDoc vCheck eCheck
Acts & Rules Ready Reckoner Compliance Calendar Checklists Register Formats Notices & Abstracts Return Formats Registerations FAQ's
MINIMUM WAGESLatest State-wise MW
UPDATESLatest Notification
About C4HR Leadership

Sales Promotion Employees (Conditions Of Service) Act

Section:4, R.14 :Accumulation and Encashment of Leave

Obligation : To ensure that all sales promotion employees are allowed to accumulate and encash leave as prescribed.

Type:Preventive Compliance Frequency: Half Yearly

Action to be taken:
Sales promotion employees are permitted to accumulate upto 180 days of earned leave.

Earned leave can be encashed upto 120 days when the employee resigns, retires or his services are terminated for any reason except termination as punishment.

If an employee was refused leave prior to his separation from the organisation, the employee will be permitted to encash upto 180 days of leave.

The cash component of earned leave will be equal to the amount of wages due to the employee for the period of leave unavailed.

When a sales promotion employee dies in service, his heirs will be entitled to compensation for the entire earned leave unavailed by the employee.

Audit Requirement:
Are all sales promotion employees allowed to accumulate and encash leave as prescribed ?

Supporting Documents:
Written Confirmation of Compliance
Related Sections:
Sales Promotion Employees (Conditions Of Service) Act, 1976
4:Leave:
(1) In addition to such holidays, casual leave or other kinds of leave as may be prescribed, every sales promotion employee [* * *] shall be granted, if so requested for-
(a) earned leave on full wages for not less than one-eleventh of the period spent on duty;
(b) leave on medical certificate on one-half of the wages for not less than one-eighteenth of the period of service.
[(2) The maximum limit up to which a sales promotion employee may accumulate earned leave shall be such as may be prescribed.
(3) The limit up to which the earned leave may be availed of at a time by a sales promotion employee and the reasons for which such limit may be exceeded shall be such as may be prescribed.
(4) A sales promotion employee shall,-
(a) when he voluntarily relinquishes his post or retires from service, or
(b) when his services are terminated for any reason whatsoever (not being termination as punishment),
be entitled to cash compensation, subject to such conditions and restrictions as may be prescribed (including conditions by way of specifying the maximum period for which such cash compensation shall be payable), in respect of the earned leave earned by him and not availed of.
(5) Where a sales promotion employee dies while in service, his heirs shall be entitled to cash compensation for the earned leave earned by him and not availed of.
(6) The cash compensation which will be payable to a sales promotion employee or, as the case may be, his heirs in respect of any period of earned leave for which he or his heirs, as the case may be, is or are entitled to cash compensation under sub-section (4) or sub-section (5), as the case may be, shall be an amount equal to the wages due to such sales promotion employee for such period.]


Sales Promotion Employees (Conditions of Service) Rules, 1976
Chapter:Holidays and Leave| 14:Earned leave and cash compensation for earned leave not availed of:
(1) The maximum limit up to which earned leave can be accumulated shall be 180 days out of which a sales promotion employee can avail himself of 90 days at a time:
PROVIDED that where a sales promotion employee is suffering from any lingering illness such as, tuberculosis, cancer, leprosy, heart disease or mental illness, or any disability which prevents him from attending to his duties, the competent authority may allow the sales promotion employee to avail himself of earned leave for any period exceeding 90 days at a time.
(2) When a sales promotion employee voluntarily relinquishes his post, or retires from service on reaching the age of superannuation, he shall be entitled to cash compensation for earned leave earned by him and not availed of:
PROVIDED that a sales promotion employee shall not be entitled to cash compensation for earned leave not availed of for a period exceeding 120 days.
(3) Notwithstanding anything contained in sub-rule (2) where a sales promotion employee had applied for earned leave due to him so as to enable him to avail, of such leave immediately before the voluntarily relinquishes his post or retires on reaching the age of superannuation and such leave was refused, the sales promotion employee shall be entitled to cash compensation for the entire period of earned leave so refused as well as cash compensation for the period of earned leave due to him, in respect of which no application to avail of the same was made; so, however, that the total period of earned leave for which cash compensation shall be payable under this sub-rule shall not exceed 180 days.
(4) Where a sales promotion employee dies while in service his heirs shall be entitled to cash compensation for the entire earned leave due to such employee and not availed of.
(5) Where a sales promotion employee's services are terminated for any reason whatsoever (not being termination as punishment), he shall be entitled to cash compensation for the entire earned leave due to him and not availed of.
(6) The cash compensation payable under this rule in respect of earned leave shall be equal to the amount of wages due to the sales promotion employee for the period of leave not availed of or refused.