Kindly help me out with the following queries:
If any employee's PL is 30 for the year 2017-2018 and for the current year 2018-2019, again 18 PLs are added, the total PLs would be 48. Now tell me, how many PLs can be encashed as per Labor Law:
a. Only half of PLs accumulated up to the last year, like half of 30.
b. Half of the full PLs accumulated up to the current period as well, like half of 48.
c. Are the leave encashments based on basics or gross? If the salary is increased in the current month, will it be included for the leave encashment, or will it be based on the last year's gross salary?
Kindly answer the above queries as soon as possible.
From India, Delhi
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6If any employee's PL is 30 for the year 2017-2018 and for the current year 2018-2019, again 18 PLs are added, the total PLs would be 48. Now tell me, how many PLs can be encashed as per Labor Law:
a. Only half of PLs accumulated up to the last year, like half of 30.
b. Half of the full PLs accumulated up to the current period as well, like half of 48.
c. Are the leave encashments based on basics or gross? If the salary is increased in the current month, will it be included for the leave encashment, or will it be based on the last year's gross salary?
Kindly answer the above queries as soon as possible.
From India, Delhi
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The leaves encashment is based on Basics or Gross; it depends on the company's leave policy. Some organizations give (basic+DA+other benefits), which is similar or near to Gross pay, while some organizations give on Gross. As per the rules we follow, we will pay on Gross and also provide 25 PL per year. Sick leave can be transferred and merged with PL by the end of the year. Up to 36 PL can be accumulated, and the rest of the PL can be encashed by the employee during their service. At the time of Full and Final settlement, only available PL can be encashed as a part of F&F.
From India, Mumbai
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From India, Mumbai
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if f & f is not the case, the employee wants to en cash the leaves in emergency then what is the policy and how many leaves will be en cashed.
From India, Delhi
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From India, Delhi
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and one more query if the gross salary is increased after the annual increment , the en cashment will takes place on the last salary or new salary
From India, Delhi
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From India, Delhi
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Hi,
Encashment of leaves is purely based on company policies. In our company, we do encashment based on the basic salary. Additionally, if an employee receives an appraisal, the encashment would be according to the new salary. Employees can encash the remaining leaves at the time of Full and Final settlement (only Privilege Leave). In cases of emergency, if company policy permits, half of the leaves can be encashed.
Thank you.
From India, Delhi
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Encashment of leaves is purely based on company policies. In our company, we do encashment based on the basic salary. Additionally, if an employee receives an appraisal, the encashment would be according to the new salary. Employees can encash the remaining leaves at the time of Full and Final settlement (only Privilege Leave). In cases of emergency, if company policy permits, half of the leaves can be encashed.
Thank you.
From India, Delhi
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Leave encasement is stipulated in the Factories Act as well as the Shop and Establishment Acts of respective states. Employers may frame rules to provide more than stipulated, but the minimum is what is mandated. Kindly check the same for your state.
Col. Suresh Rathi
From India, Delhi
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Col. Suresh Rathi
From India, Delhi
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It is high time we take a relook at the leave policy. Why have multiple types of leaves and detailed rules and procedures? In earlier days, there used to be timekeepers who entered the attendance data and managed leave calculations. However, with the advent of modern organizations offering more user-friendly provisions and IT-based software, it is high time we abandon the old notion and embrace a newer perspective of simplified rules. This can be achieved by having only one kind of leave with set limits for annual accrual, accumulation, and encashment.
I understand that transitioning existing organizations to this new structure may be challenging and could be more feasible in newly established organizations. Additionally, various legislations such as the Factory Act of 1948 addressing Annual leave, the ESI Act covering sickness benefits, Certified Standing Orders specifying a variety of admissible leaves, and the Contract Labour standard conditions as per Section 12 must all be taken into consideration. This is why I am suggesting a review of this cumbersome provision.
From India, Mumbai
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I understand that transitioning existing organizations to this new structure may be challenging and could be more feasible in newly established organizations. Additionally, various legislations such as the Factory Act of 1948 addressing Annual leave, the ESI Act covering sickness benefits, Certified Standing Orders specifying a variety of admissible leaves, and the Contract Labour standard conditions as per Section 12 must all be taken into consideration. This is why I am suggesting a review of this cumbersome provision.
From India, Mumbai
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Leave encashment is always processed at the time of full and final settlement. However, some companies also choose to encash it at the end of each year. It depends on how employee-centric the company is. As per the Delhi - Shops & Establishment Act, leave encashment is done on Basic Salary, and a maximum of 45 leaves can be accumulated in 3 years. Beyond 45 days, PL's will also lapse.
Regards, Shweta Gehlot
From India, Delhi
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Regards, Shweta Gehlot
From India, Delhi
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Though the law allows EL leaves to employees, there is no provision in the Factory Act regarding leave encashment on Gross or Basic + DA. The Factory Act states that 30 leaves can be accumulated, and more than that can be encashed. However, leave rules are decided by the employer for workers during negotiations and are fixed in the settlement, which will be practiced henceforth.
Regards, Nanasaheb Kolage 9890901957
From India, Pune
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Regards, Nanasaheb Kolage 9890901957
From India, Pune
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High Courts Judgments & Central Rules on leave encashment.docx
PF Circular for No PF in Encashment of Leaves.pdf