Hello Everyone,
I\'m seeking clarification regarding whether an employee who is serving their notice period is eligible for the accrual or credit of paid leave. Additionally, could someone please shed some light on the encashment process?
This query is specifically in relation to a software company based in Hyderabad.
From India, Pune
Acknowledge(0)
Amend(0)
1I\'m seeking clarification regarding whether an employee who is serving their notice period is eligible for the accrual or credit of paid leave. Additionally, could someone please shed some light on the encashment process?
This query is specifically in relation to a software company based in Hyderabad.
From India, Pune
Acknowledge(0)Amend(0)
The accrual and encashment of paid leave during the notice period can vary based on the company's policies and the labor laws of the region.
Firstly, the core issue here is whether an employee serving their notice period can accrue paid leave and if they can encash these leaves. This can affect the employee's final settlement and also influence the company's financial planning.
From a legal standpoint, the Shops and Establishments Act of the respective state governs leave policies in India. In Telangana, where Hyderabad is located, the Telangana Shops and Establishments Act, 1988, is applicable. However, this Act does not explicitly mention the accrual or encashment of leave during the notice period. Therefore, it largely depends on the company's leave policy.
Here's a step-by-step action plan:
1. Review your company's leave policy: Check if there are any clauses related to leave accrual and encashment during the notice period.
2. Consult with HR: If the policy is unclear, consult with your HR department for clarification.
3. Document the process: If you are eligible for leave accrual and encashment, ensure you document the process for future reference.
Additional tips include ensuring you understand all aspects of your company's leave policy, not just those related to the notice period. Be aware of any changes to labor laws or company policies.
Remember, while the law provides a broad framework, the specifics may vary from company to company. Always consult with HR or a legal professional for advice tailored to your situation.
From India, Gurugram
Acknowledge(0)Amend(0)
Firstly, the core issue here is whether an employee serving their notice period can accrue paid leave and if they can encash these leaves. This can affect the employee's final settlement and also influence the company's financial planning.
From a legal standpoint, the Shops and Establishments Act of the respective state governs leave policies in India. In Telangana, where Hyderabad is located, the Telangana Shops and Establishments Act, 1988, is applicable. However, this Act does not explicitly mention the accrual or encashment of leave during the notice period. Therefore, it largely depends on the company's leave policy.
Here's a step-by-step action plan:
1. Review your company's leave policy: Check if there are any clauses related to leave accrual and encashment during the notice period.
2. Consult with HR: If the policy is unclear, consult with your HR department for clarification.
3. Document the process: If you are eligible for leave accrual and encashment, ensure you document the process for future reference.
Additional tips include ensuring you understand all aspects of your company's leave policy, not just those related to the notice period. Be aware of any changes to labor laws or company policies.
Remember, while the law provides a broad framework, the specifics may vary from company to company. Always consult with HR or a legal professional for advice tailored to your situation.
From India, Gurugram
Acknowledge(0)Amend(0)
Dear Rashi Shrivastav,
The employees who have served their resignation and are on notice period are eligible for the accrual and leave earned till their last working day.
The encashment process is simple, the Earned Leave in balance plus leave of current calendar year.
As per rule an employee is eligible for total quantum of earned leave provided completed 240 days or 120 days working for not working whole calendar byear or 3/4 available working days for after mid year joining.
The employees will be eligible for gratuity as per new wage code having not been completed 5 years but completed 1 year services.
You check with the licensing authority to know the status of new labour codes.
From India, Mumbai
Acknowledge(0)Amend(0)
The employees who have served their resignation and are on notice period are eligible for the accrual and leave earned till their last working day.
The encashment process is simple, the Earned Leave in balance plus leave of current calendar year.
As per rule an employee is eligible for total quantum of earned leave provided completed 240 days or 120 days working for not working whole calendar byear or 3/4 available working days for after mid year joining.
The employees will be eligible for gratuity as per new wage code having not been completed 5 years but completed 1 year services.
You check with the licensing authority to know the status of new labour codes.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg