Hello,
I wanted to know the general practice followed in the organisation for leave encashment ?
Can leave encashment be done any time during the year?
Will the leave encashment be done automatically based on the company's policy or will it be based on employee's choice?
Can any one please suggest the normal practice for leave encashment followed across the organization?
Thanks & Regards,
Neeta Nair
From India, Mumbai
I wanted to know the general practice followed in the organisation for leave encashment ?
Can leave encashment be done any time during the year?
Will the leave encashment be done automatically based on the company's policy or will it be based on employee's choice?
Can any one please suggest the normal practice for leave encashment followed across the organization?
Thanks & Regards,
Neeta Nair
From India, Mumbai
Hi Neeta,
Leave encashment depends on a company's HR policies.
Generally, PLs can be accumulated Up to 45 days.
If at the time of credit of PL the accumulation goes beyond 45 days, the excess leave over and above 45 days shall automatically lapse.
similarly, PLs can be encashed keeping 30 days in balance. Entire leave credited to employee’s a/c will be encashed at the time of resignation/retirement.
These rules differ from state to state and company to company.
The above encashment rule is based on Delhi Shop's & establishment Act.
Regards
Abhishek
From India, New Delhi
9Leave encashment depends on a company's HR policies.
Generally, PLs can be accumulated Up to 45 days.
If at the time of credit of PL the accumulation goes beyond 45 days, the excess leave over and above 45 days shall automatically lapse.
similarly, PLs can be encashed keeping 30 days in balance. Entire leave credited to employee’s a/c will be encashed at the time of resignation/retirement.
These rules differ from state to state and company to company.
The above encashment rule is based on Delhi Shop's & establishment Act.
Regards
Abhishek
From India, New Delhi
Abhishek,
Thanks for that information.
But would you be able to tell me in case company has a policy of encashing unavailed PL once a year subject to a minimum balance of 45 days, then in such cases
Is it advisable that company encashes the leave immediately if a person exceeds 45days in his account.
Or
It should be left to employees to decide whether they want to encash the same.In such case can the encashment be done whenever the employee needs the money.
Regards,
Neeta
From India, Mumbai
Thanks for that information.
But would you be able to tell me in case company has a policy of encashing unavailed PL once a year subject to a minimum balance of 45 days, then in such cases
Is it advisable that company encashes the leave immediately if a person exceeds 45days in his account.
Or
It should be left to employees to decide whether they want to encash the same.In such case can the encashment be done whenever the employee needs the money.
Regards,
Neeta
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg