Dear Seniors,
My name is Nijisha.I am working in a Pharma wholesale and Retail firm as HR Officer.Our firm has got 3 types of leaves,Casual Leave,Sick Leave and Public Holiday.Can anyone please clarify whether all these types of leaves are included in Leave Encashment Policy? or is there any exemptions or special cases?
From India, Kochi
My name is Nijisha.I am working in a Pharma wholesale and Retail firm as HR Officer.Our firm has got 3 types of leaves,Casual Leave,Sick Leave and Public Holiday.Can anyone please clarify whether all these types of leaves are included in Leave Encashment Policy? or is there any exemptions or special cases?
From India, Kochi
Dear Nijisha,
I work for a pharma company. In my organisation its only casual leave that gets encashed at the end of the year. Sick Leave gets carried forward.Privelige leave gets encashed when the employee leaves the organisation and also when the accumulated balance of Privelege leave croses 90 days then the leaves accumulated over and above 90 days are encashed.For Example an employee has accumulated Previlige leave balance of 100 days then 10 days will be the privelege leave encashment.
If an employee works on a public holiday he is given a compensatory off and there is no leave encashment for public holiday.
In Leave encashment Policy its only casual leave and Privelege leave that are included for encashment.
From India, Mumbai
53I work for a pharma company. In my organisation its only casual leave that gets encashed at the end of the year. Sick Leave gets carried forward.Privelige leave gets encashed when the employee leaves the organisation and also when the accumulated balance of Privelege leave croses 90 days then the leaves accumulated over and above 90 days are encashed.For Example an employee has accumulated Previlige leave balance of 100 days then 10 days will be the privelege leave encashment.
If an employee works on a public holiday he is given a compensatory off and there is no leave encashment for public holiday.
In Leave encashment Policy its only casual leave and Privelege leave that are included for encashment.
From India, Mumbai
Hello Nijisha
Yes, I agree with the contention that your Pharma company is violating the rule / provisions by not allowing you and its other employees Annual Leave or Earned Leave or Privileged Leave, whatever you may call. It is as per statute which has to be allowed @ 1 day for each 20 days of physical attendance subject to a minimum of 240 days qualifying attendance. If the physical attendance falls short of 240 days, the authorized leave - Casual Leave, Medical Leave , any other authorized leave like maternity leave in case of female employees , injury leave etc.has to be taken into account for qualifying the person for leave. However, the leave will be calculated on actual physical attendance only on prorata basis.
You must talk to your HR Manager in this regard. Best wishes.
AK Jain
From India, Jabalpur
Yes, I agree with the contention that your Pharma company is violating the rule / provisions by not allowing you and its other employees Annual Leave or Earned Leave or Privileged Leave, whatever you may call. It is as per statute which has to be allowed @ 1 day for each 20 days of physical attendance subject to a minimum of 240 days qualifying attendance. If the physical attendance falls short of 240 days, the authorized leave - Casual Leave, Medical Leave , any other authorized leave like maternity leave in case of female employees , injury leave etc.has to be taken into account for qualifying the person for leave. However, the leave will be calculated on actual physical attendance only on prorata basis.
You must talk to your HR Manager in this regard. Best wishes.
AK Jain
From India, Jabalpur
r. Vishal,who is experienced in the same organisation has
rightly clarified. I would just
like to add here that Leave-
encashment is a Management -
policy. In most of the orga-
nisations Previlage leave is
encashable and Earned leave
if not availed get lapsed.
So, HR Manager has to propose to the management and implement.
Hope this will also be helpful.
Eswararao Ivaturi.
From United States, Cupertino
rightly clarified. I would just
like to add here that Leave-
encashment is a Management -
policy. In most of the orga-
nisations Previlage leave is
encashable and Earned leave
if not availed get lapsed.
So, HR Manager has to propose to the management and implement.
Hope this will also be helpful.
Eswararao Ivaturi.
From United States, Cupertino
Nijisha
- You first refer Kerala Shops & Commercial Establishment Act, 1960 for a better clarity about the number of leaves
You may please check the following aspects with respect to the above Act
Total number of leave with wages entitled to an employee completed 12 months of continuous service
- Holidays with wages for a period of 12 days
- Leave with wages for a period of 12 days on the ground of sickness
- Casual leave with wages for a period of 12 days on any reasonable grounds.
Certain companies allow unused Sick Leave to carry forward as Sick Leave itself for a limited number of days or merged with Privilege or Earned Leave in the following year.
About Casual Leave, generally not allowed to carry forward and get lapsed; again some companies compensate the unused leave with an amount at the rate of basic salary in the following year. All depends on the company policy.
@ Arun Jain - you were referring Factory Act, which says - 1 day = 20 days worked for EL / PL
Suresh
From India, Pune
- You first refer Kerala Shops & Commercial Establishment Act, 1960 for a better clarity about the number of leaves
You may please check the following aspects with respect to the above Act
Total number of leave with wages entitled to an employee completed 12 months of continuous service
- Holidays with wages for a period of 12 days
- Leave with wages for a period of 12 days on the ground of sickness
- Casual leave with wages for a period of 12 days on any reasonable grounds.
Certain companies allow unused Sick Leave to carry forward as Sick Leave itself for a limited number of days or merged with Privilege or Earned Leave in the following year.
About Casual Leave, generally not allowed to carry forward and get lapsed; again some companies compensate the unused leave with an amount at the rate of basic salary in the following year. All depends on the company policy.
@ Arun Jain - you were referring Factory Act, which says - 1 day = 20 days worked for EL / PL
Suresh
From India, Pune
Hi, I am Neil and now working in Vietnam.
Firstly, the company has to observe the corresponding laws governing giving leave benefits. What and how many leaves to give must confirm to existing laws of a country.
Secondly, conversion of unused leaves to cash is a company prerogative. Some companies advocate its usage or conversion to cash to generate productivity. Others allow the leaves to accumulate and which can be commuted to cash when an employee retires or resigns.
As HR practitioner, what you can do is benchmark with companies belonging to you industry to check the current practices so as to allow your company to be "comparable" to what they have been practicing.
Regards. Neil
From Vietnam, Vinh
Firstly, the company has to observe the corresponding laws governing giving leave benefits. What and how many leaves to give must confirm to existing laws of a country.
Secondly, conversion of unused leaves to cash is a company prerogative. Some companies advocate its usage or conversion to cash to generate productivity. Others allow the leaves to accumulate and which can be commuted to cash when an employee retires or resigns.
As HR practitioner, what you can do is benchmark with companies belonging to you industry to check the current practices so as to allow your company to be "comparable" to what they have been practicing.
Regards. Neil
From Vietnam, Vinh
Hi, Pharma wholesale and
retail firms comes under the
Shops and Establishments Act
of the State Govt. concerned
where in the leaves applicable
(As already mentioned by Mr.
Suresh, contributing member)
is given. As per the Section 13 of CHAPTER III
(Holidays and leave) of
KERALA SHOPS AND COMMERCIAL
ESTABLISHMENTS ACT 1960 (1)
where in Act 34 of Kerala
Shos and Commercial Establishments Act 1960 is
amended, the enchashment of
earned leave is allowed if
the employee is discharged by his employer before he
has been allowed the holidays or if having applied for and been refused
holidays and he quits his
employment before he has been the holidays, the employer shall pay him the
amount payable under this
act inrespect of the leave to which he was entitled.
As per the act employee can
accumulate the leave to the
maximum extent of 24 days and thereafter it lapses.
Hope this is now clear.
Eswararao Ivaturi.
From United States, Cupertino
retail firms comes under the
Shops and Establishments Act
of the State Govt. concerned
where in the leaves applicable
(As already mentioned by Mr.
Suresh, contributing member)
is given. As per the Section 13 of CHAPTER III
(Holidays and leave) of
KERALA SHOPS AND COMMERCIAL
ESTABLISHMENTS ACT 1960 (1)
where in Act 34 of Kerala
Shos and Commercial Establishments Act 1960 is
amended, the enchashment of
earned leave is allowed if
the employee is discharged by his employer before he
has been allowed the holidays or if having applied for and been refused
holidays and he quits his
employment before he has been the holidays, the employer shall pay him the
amount payable under this
act inrespect of the leave to which he was entitled.
As per the act employee can
accumulate the leave to the
maximum extent of 24 days and thereafter it lapses.
Hope this is now clear.
Eswararao Ivaturi.
From United States, Cupertino
Hi All,
Can anyone tell the procedure of PL after resigning of an employee.
In our Org. • Privilege Leave: The Privilege Leave entitlement for all Employees will be maximum 15 days every year. This will be added to leave account at the rate of 5 leaves per four months in arrears i.e., 5 day privilege Leave for every 4 months on rolls (period of without pay leave to be excluded while calculating).
Privilege leave is not applicable for the first year of service with company.
The accumulation limit for earned leave will be 45 days irrespective of the number of years of service put in by a Employee. Sundays and holidays falling within the span of EL will be added to Earned leave account. Request for EL is to be made preferably by the beginning of the year or atleast 7 working days in advance
An employee has to accrue atleast 30 days EL for encashment purpose
Maximum 45 days of Privilege Leave can be taken at a time.
But now i want to add pl encashment procedure in my policy after resigning any employee.
Please help me out..
From India, Delhi
Can anyone tell the procedure of PL after resigning of an employee.
In our Org. • Privilege Leave: The Privilege Leave entitlement for all Employees will be maximum 15 days every year. This will be added to leave account at the rate of 5 leaves per four months in arrears i.e., 5 day privilege Leave for every 4 months on rolls (period of without pay leave to be excluded while calculating).
Privilege leave is not applicable for the first year of service with company.
The accumulation limit for earned leave will be 45 days irrespective of the number of years of service put in by a Employee. Sundays and holidays falling within the span of EL will be added to Earned leave account. Request for EL is to be made preferably by the beginning of the year or atleast 7 working days in advance
An employee has to accrue atleast 30 days EL for encashment purpose
Maximum 45 days of Privilege Leave can be taken at a time.
But now i want to add pl encashment procedure in my policy after resigning any employee.
Please help me out..
From India, Delhi
Dear Nijisha,
First of all, u have to look yr leave policy which u are obeying in your company. Secondly u have to consider what types of leave u want to consider in yr leave eacashment at the end of every year. After having all this materials, u go to yr top management with labour laws which almost u have idea from above post. Then u frame a concrete policy of encashment. As far as types of leave are concerned in yr company, u should go further with applicable laws in yr compnay. See Nijisha, PL(Paid Leave) is variated from organisation to organisation so its yr management sole discretion whether to implement it or not.
If further query, u can mail me.
From India, Surat
First of all, u have to look yr leave policy which u are obeying in your company. Secondly u have to consider what types of leave u want to consider in yr leave eacashment at the end of every year. After having all this materials, u go to yr top management with labour laws which almost u have idea from above post. Then u frame a concrete policy of encashment. As far as types of leave are concerned in yr company, u should go further with applicable laws in yr compnay. See Nijisha, PL(Paid Leave) is variated from organisation to organisation so its yr management sole discretion whether to implement it or not.
If further query, u can mail me.
From India, Surat
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Leave Policy.doc