Kindly clarify the following query: whether a condition in the leave rules that the employee would be eligible for leave encashment only upon attaining superannuation is right in the eyes of the law.
Thank you.
From India, Tiruppur
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1Thank you.
From India, Tiruppur
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Yes but all those leave refused should be en cashed at the closing to Leave Year if employee want to encash.
From India, Pune
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From India, Pune
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Dear Sasikumar,
"Leave," irrespective of its nature and duration, is an employment benefit conferred upon the employees as a means of authorized absence from work. The primary objective behind such an employment concession is to enable the employees to rejuvenate themselves occasionally from the monotony of work, apart from permitting them to discharge certain personal and social obligations which are contingent in everyone's social life. Therefore, basically, the facility of leave encashment is anathema to the very concept of leave in the realm of employment. That's why every establishment-specific labor law puts off the facility of leave encashment to the termination of employment only. Hence, it is reasonable and legal as well.
Coming to the aspects of the sanction of leave and its refusal, none can be idealized, nor can any straight-jacket formula be given. No employer should refuse the sanction of any leave mechanically; it is equally true that no employee can claim any leave as a matter of right. However, if any organization's leave policy permits annual encashment of any non-lapsable leave like EL/PL, it is not illegal.
From India, Salem
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"Leave," irrespective of its nature and duration, is an employment benefit conferred upon the employees as a means of authorized absence from work. The primary objective behind such an employment concession is to enable the employees to rejuvenate themselves occasionally from the monotony of work, apart from permitting them to discharge certain personal and social obligations which are contingent in everyone's social life. Therefore, basically, the facility of leave encashment is anathema to the very concept of leave in the realm of employment. That's why every establishment-specific labor law puts off the facility of leave encashment to the termination of employment only. Hence, it is reasonable and legal as well.
Coming to the aspects of the sanction of leave and its refusal, none can be idealized, nor can any straight-jacket formula be given. No employer should refuse the sanction of any leave mechanically; it is equally true that no employee can claim any leave as a matter of right. However, if any organization's leave policy permits annual encashment of any non-lapsable leave like EL/PL, it is not illegal.
From India, Salem
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Leave encashment is allowed when an employee dies while in service. In certain organizations, EL encashment or adjustment of EL against the notice period is permitted in case of resignation. According to sub-section 11 of Section 79 of the Factories Act 1948, if the employer terminates the service of a worker, the salary is payable within the second next working day. If the worker voluntarily quits the employment, the leave salary has to be paid on or before the next payday.
From India, Mumbai
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From India, Mumbai
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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