Hi,
Can anyone confirm if there is any law/rule wherein leave encashment is mandatory. Can't we encourage employees to take leave or it will lapse.And is number of leave accumulation also as per law or company procedure?
For eg - if we give employee the option to accumulate leave upto 45 post which the acquired leave would lapse in the respective year if not utilized.
This 45 days leave would encash only at the time of F&F settlement at basic pay.
Please share your inputs as per rule prevalent in Delhi.
Thanks
From India, Delhi
1Can anyone confirm if there is any law/rule wherein leave encashment is mandatory. Can't we encourage employees to take leave or it will lapse.And is number of leave accumulation also as per law or company procedure?
For eg - if we give employee the option to accumulate leave upto 45 post which the acquired leave would lapse in the respective year if not utilized.
This 45 days leave would encash only at the time of F&F settlement at basic pay.
Please share your inputs as per rule prevalent in Delhi.
Thanks
From India, Delhi
As perresig Shop and Establishment Act applicable in Delhi, Max of 45 days earned leave can be accumulated for encahment .Encashment is to be done at the time of full and final ie at the time of leaving the organisation.
Auth--http://www.delhi.gov.in/wps/wcm/connect/doit_labour/Labour/Home/Acts+Implemented/Details+of+the+Acts+Implemented/The+Delhi+Shops+Act,+1954/
From India, Delhi
Auth--http://www.delhi.gov.in/wps/wcm/connect/doit_labour/Labour/Home/Acts+Implemented/Details+of+the+Acts+Implemented/The+Delhi+Shops+Act,+1954/
From India, Delhi
Dear all, Only Earned leaves are en-cashed that is too at the time of resigning or superannuation. During the continuation of employment it is not mandatory to en-cash leaves. P K Sharma
From India, Delhi
From India, Delhi
Its well known fact that leave rules generally are not common in all the establishments. This is one area where almost every establishment differ with each others, excepting central govt offices who follow their FR/SR/CCS(Leave) Rules. The nature/types of leave, No.of days of leave in each category, maximum days which could be accumulated, rules for encashment etc are also not commonly followed. This is mainly due to applicability of Acts under which these establishments are established like Factories Act, Shops & Coml.Estt Act, Societies & Clubs, Educational Insttns. etc. What is uniformly followed is reg.Leave encashment. While elapse of leave accumulated over and above the maximum limit is strictly enforced as and when leave at credit overflows, same is not the case for encashment which is discretionary on the part of employer except in case of F & F settlement. So if there is enabling provision in the respective Leave rule one cannot claim it as a right to encash.
From India, Bangalore
From India, Bangalore
Hi all,
As I'm new to HR, can anyone please confirm me whether encashment of leave as per AP shops and establishment act for service sector (private company) is mandatory or it depends on company policies. In this case if company is not included in their policy, is that against law or it's employer wish.
Please do needful.
Thanks and regards
Swapna
From India, Hyderabad
As I'm new to HR, can anyone please confirm me whether encashment of leave as per AP shops and establishment act for service sector (private company) is mandatory or it depends on company policies. In this case if company is not included in their policy, is that against law or it's employer wish.
Please do needful.
Thanks and regards
Swapna
From India, Hyderabad
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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