Hi Group
I am currently re-making the company's leave policy. The earlier structure of leave does not have the provision of the encashment of leave. Now, I want to incorporate the encashment of leave also.
Kindly, guide me regading the encashment of the earned leave as we donot have the provision for encashment of sick/casual leave.
Plz help
Prachi
From India, Delhi
3I am currently re-making the company's leave policy. The earlier structure of leave does not have the provision of the encashment of leave. Now, I want to incorporate the encashment of leave also.
Kindly, guide me regading the encashment of the earned leave as we donot have the provision for encashment of sick/casual leave.
Plz help
Prachi
From India, Delhi
05th June, 2006
Dear Friend,
As I given earlier regarding the same in "LEAVE RULES" However this may be useful to you. See the following;
ALL THE EMPLOYEES
All the Employees are hereby in formed that the following leaves and leave rules are introduced and will be come into force with effect from
1. CASUAL LEAVES 12 Per Year
2. SICK LEAVES 12 Per Year
3. EARNED LEAVES 15 Per Year (Aprox. As per Factories Act)
1. CASUAL LEAVES
a) An employee may be granted causal leave for a maximum of 12days during the calendar year (i.e 1st January to 31st December)
b) An employee who is appointed during the course of the year shall be entitled to it on pro-rata basis.
c) Save in exceptional circumstances causal leave will not be granted for more than three days at a time.
d) Any absence of more than the number of days allowed for causal leave shall, when not due to sickness, be treated as unauthorized absence from duty.
e) If holiday falls in between casual leave, the leave will be treated as earned leave.
f) Unavailed casual leave will be lapsed at the end of the year.
2. SICK LEAVE
a) An employee may be granted sick leave for a maximum of 12days during the calendar year (i.e 1st January to 31st December)
b) The sick leave will be considered only for two day, more than two days will be considered with the support of medical certificate. The supported medical certificate should be issued by a Regd. Medical Practitioner not below the rank of MBBS doctor.
c) The unavailed sick leave will be carry forward to next year.
d) Maximum accumulation of sick leave is 30days.
e) Sick leave should not be clubbed with any other leave.
3. EARNED LEAVE
a) Every employee who has worked for a period of 20days or more shall be allowed one day as earned leave.
b) Earned leave will be sanctioned only on continuous basis; holidays if any in between will be exempted.
c) Earned leave cannot be availed off more than 3times in calendar year.
d) Earned leave may be accumulated up to 60days. Leave up to maximum of 30days will be encashed on the discretion of the management.
NOTE:- AVAILING LEAVE IS NOT A MATTER OF RIGHT. THE MANAGEMENT CAN THUS REFUSE TO GRANT LEAVE TO AN EMPLOYEE DUE TO EXGENCIES OF WORK. THE CASUAL LEAVE SHOULD GET SANCTIONED 02 TO 03 DAYS BEFORE AVAILING FROM THE DEPT.HEAD, AND THE EARNED LEAVE AS PER THE FACTORIES ACT.
- PERSONNEL MANAGER
Regards,
:)
PBS KUMAR
From India, Kakinada
Dear Friend,
As I given earlier regarding the same in "LEAVE RULES" However this may be useful to you. See the following;
ALL THE EMPLOYEES
All the Employees are hereby in formed that the following leaves and leave rules are introduced and will be come into force with effect from
1. CASUAL LEAVES 12 Per Year
2. SICK LEAVES 12 Per Year
3. EARNED LEAVES 15 Per Year (Aprox. As per Factories Act)
1. CASUAL LEAVES
a) An employee may be granted causal leave for a maximum of 12days during the calendar year (i.e 1st January to 31st December)
b) An employee who is appointed during the course of the year shall be entitled to it on pro-rata basis.
c) Save in exceptional circumstances causal leave will not be granted for more than three days at a time.
d) Any absence of more than the number of days allowed for causal leave shall, when not due to sickness, be treated as unauthorized absence from duty.
e) If holiday falls in between casual leave, the leave will be treated as earned leave.
f) Unavailed casual leave will be lapsed at the end of the year.
2. SICK LEAVE
a) An employee may be granted sick leave for a maximum of 12days during the calendar year (i.e 1st January to 31st December)
b) The sick leave will be considered only for two day, more than two days will be considered with the support of medical certificate. The supported medical certificate should be issued by a Regd. Medical Practitioner not below the rank of MBBS doctor.
c) The unavailed sick leave will be carry forward to next year.
d) Maximum accumulation of sick leave is 30days.
e) Sick leave should not be clubbed with any other leave.
3. EARNED LEAVE
a) Every employee who has worked for a period of 20days or more shall be allowed one day as earned leave.
b) Earned leave will be sanctioned only on continuous basis; holidays if any in between will be exempted.
c) Earned leave cannot be availed off more than 3times in calendar year.
d) Earned leave may be accumulated up to 60days. Leave up to maximum of 30days will be encashed on the discretion of the management.
NOTE:- AVAILING LEAVE IS NOT A MATTER OF RIGHT. THE MANAGEMENT CAN THUS REFUSE TO GRANT LEAVE TO AN EMPLOYEE DUE TO EXGENCIES OF WORK. THE CASUAL LEAVE SHOULD GET SANCTIONED 02 TO 03 DAYS BEFORE AVAILING FROM THE DEPT.HEAD, AND THE EARNED LEAVE AS PER THE FACTORIES ACT.
- PERSONNEL MANAGER
Regards,
:)
PBS KUMAR
From India, Kakinada
Dear PBS Thanx for such a valuable information but my query is regaring the encashment of the said bifurcations. plz help me in that direction also. Cheers Prachi
From India, Delhi
From India, Delhi
plz help me with the encashment policy in your organization so that I can design for my company. prachi
From India, Delhi
From India, Delhi
Dear Prachi,
I just had a small query... can you elaborate as to why have you decided to incorporate leave encashment? What is the objective...rationale for introducing this policy?
Maybe, then we all would be able to help you in devising a suitable policy.
Regards,
Anuradha Zingade
From India, Pune
I just had a small query... can you elaborate as to why have you decided to incorporate leave encashment? What is the objective...rationale for introducing this policy?
Maybe, then we all would be able to help you in devising a suitable policy.
Regards,
Anuradha Zingade
From India, Pune
Hi Anu
Our employees take unnecessary leaves and there is no official record of them. Moreover, at the end of the year they demand the encashment of leaves.
Since, ours is a new organization so we cannot afford to either give too many holidays or encash on wrong basis. However, we do understand that encashment of leaves a must as per factories act.
So, in this direction, I want to know about the encashement of leaves and till what time they are valid and when can be encashed upon.
Plz help.
Cheers
Prachi
From India, Delhi
Our employees take unnecessary leaves and there is no official record of them. Moreover, at the end of the year they demand the encashment of leaves.
Since, ours is a new organization so we cannot afford to either give too many holidays or encash on wrong basis. However, we do understand that encashment of leaves a must as per factories act.
So, in this direction, I want to know about the encashement of leaves and till what time they are valid and when can be encashed upon.
Plz help.
Cheers
Prachi
From India, Delhi
Dear Prachi,
Sorry i was not able to reply. I am trying to search for the survey which was conducted by one HR colleague and put up on HR community. give me a day's time. I should be able to get back to you.
In general, Casual Leaves and Earned leaves are encashable. Entire CL can be encashable or you set a limit that 15 or above can be encashable. Sick leave limit is usually a little higher as these may be required during long sickness. Ideally, it 30 and above in most of the companies. above 30 SLs can be encashable.
If your objective is to reduce absenteeism, then all CLs not consumed can be encashable but set a limit for SL accumulation.
The calculation for encashment also varies from company to company with some companies giving encashment on all the monthly components of the salary while some giving on the basic.
Usually, calendar year is followed for leaves i.e. from january to december. AS soon as the opening balance for the leaves are posted in the moth of january (depneding upon the efficiency of the department :) ) the notification or a circular is put up by HR/Personnel department stating till when the encashment can be done.
Hope this helps till the time being..
regards,
Anuradha
From India, Pune
Sorry i was not able to reply. I am trying to search for the survey which was conducted by one HR colleague and put up on HR community. give me a day's time. I should be able to get back to you.
In general, Casual Leaves and Earned leaves are encashable. Entire CL can be encashable or you set a limit that 15 or above can be encashable. Sick leave limit is usually a little higher as these may be required during long sickness. Ideally, it 30 and above in most of the companies. above 30 SLs can be encashable.
If your objective is to reduce absenteeism, then all CLs not consumed can be encashable but set a limit for SL accumulation.
The calculation for encashment also varies from company to company with some companies giving encashment on all the monthly components of the salary while some giving on the basic.
Usually, calendar year is followed for leaves i.e. from january to december. AS soon as the opening balance for the leaves are posted in the moth of january (depneding upon the efficiency of the department :) ) the notification or a circular is put up by HR/Personnel department stating till when the encashment can be done.
Hope this helps till the time being..
regards,
Anuradha
From India, Pune
Hi All,
We want to revise our current encashment poilicy. Emlpoyees are accumulating lot of leaves which we want to discourage. It is resulting into lot of payouts to the employees. Please help with a policy which will discourage encashments.
Rgds,
Tripti
We want to revise our current encashment poilicy. Emlpoyees are accumulating lot of leaves which we want to discourage. It is resulting into lot of payouts to the employees. Please help with a policy which will discourage encashments.
Rgds,
Tripti
Hi
Generally, Leave encashment is on the basis of last earned Basic Salary. For Eg: if you need to encash 5 days of earned leave which have not been availed by an employee, then 5 days basic salary can be encashed.
Regards
From India, Delhi
Generally, Leave encashment is on the basis of last earned Basic Salary. For Eg: if you need to encash 5 days of earned leave which have not been availed by an employee, then 5 days basic salary can be encashed.
Regards
From India, Delhi
For more detail about EARNED LEAVE ENCASHMENT PLAN VISIT TO OUR BLOG AT www.consultingactuarymlsodhi.blogspot.com
From India, Chandigarh
From India, Chandigarh
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg