Hi group,
What is the general practice for EL encashment?
What CTC components are taken into consideration for the same?
and what is the general practice for same in case a person leaves during probation period?
Best Regards,
Upasna Kaushik
From India, Delhi
What is the general practice for EL encashment?
What CTC components are taken into consideration for the same?
and what is the general practice for same in case a person leaves during probation period?
Best Regards,
Upasna Kaushik
From India, Delhi
Hi Upasna
The procedure for EL encashment is a simple formula based on the basic salary of the employee.
Encashment = Basic Salary/30*no of EL
This is applicable to all confirmed employees in the organisation who have an EL entitlement. In most organisations, an employee gets EL only after confirmation.
Secondly, it is based only on Basic Salary , no other components of CTC are counted in this.
In case a person leaves during probation, he / she would get no leave encashment as there are no ELs.
Cheers!
Pooja
From India, Delhi
2The procedure for EL encashment is a simple formula based on the basic salary of the employee.
Encashment = Basic Salary/30*no of EL
This is applicable to all confirmed employees in the organisation who have an EL entitlement. In most organisations, an employee gets EL only after confirmation.
Secondly, it is based only on Basic Salary , no other components of CTC are counted in this.
In case a person leaves during probation, he / she would get no leave encashment as there are no ELs.
Cheers!
Pooja
From India, Delhi
Hi Rads,
Welcome to our citehr.com and hope that it proves to be useful to you.
Regarding the deduction of an employee not serving the notice period:-
1. Deduction is made on basic or gross depends on the policies laid down in the manual.In case of restructuring - what base do you follow basic or gross or what base is followed in encashment of EL, it's important to have a fair & equity treatment to employees otherwise it can lead to a messy legal hassles!...
2.Good HR practices requires that it should be uniform and have a over-riding clause that it can be waived off subject to approval of MD.
The reason being that there could be certain circumstances where an employee cannot serve the notice period and if management feels that he/she has served the organization well in the past so this could be a good gesture on the part of the company.
Also keep in mind the labor conditions of your industry and availability of manpower.
Cheerio
Rajat Joshi
From India, Pune
Welcome to our citehr.com and hope that it proves to be useful to you.
Regarding the deduction of an employee not serving the notice period:-
1. Deduction is made on basic or gross depends on the policies laid down in the manual.In case of restructuring - what base do you follow basic or gross or what base is followed in encashment of EL, it's important to have a fair & equity treatment to employees otherwise it can lead to a messy legal hassles!...
2.Good HR practices requires that it should be uniform and have a over-riding clause that it can be waived off subject to approval of MD.
The reason being that there could be certain circumstances where an employee cannot serve the notice period and if management feels that he/she has served the organization well in the past so this could be a good gesture on the part of the company.
Also keep in mind the labor conditions of your industry and availability of manpower.
Cheerio
Rajat Joshi
From India, Pune
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