Dear All,
I have doubts about leave encashment. In my company, we only have causal and sick leaves for a year, and as far as I know, causal leave will not be carried over to the following year, but sick leave will. My question is: are these two causal and sick leaves mandatory to encash?
Is it legal?
From India, Pune
I have doubts about leave encashment. In my company, we only have causal and sick leaves for a year, and as far as I know, causal leave will not be carried over to the following year, but sick leave will. My question is: are these two causal and sick leaves mandatory to encash?
Is it legal?
From India, Pune
If yours is a factory then legally there is only one kind of leave, viz, annual leave with wages, often called Earned Leave. The number of leave to which an employee is eligible to depends on the number of days he has worked in the previous year. It is 0ne for every 20 days worked in the previous year. Any unavailed leave shall be carried forward to the next year subject to 24 days. At the time of termination of employment, due to any reason, the unavailed leave shall be encashed.
Under the Act governing plantations and other commercial establishments also similar provisions are available. Since the law governing to the latter is a state Act, there may be difference with regard to the number of leaves. But I think that all states have leave rules which provide for 12 days Earned leave in addition to casual leaves and sick leaves and the Earned leave which is similar to the one said about Factories Act can be carried forward and encashed at the time of leaving.
Please confirm under which Act your establishment comes and then follow the provision relating to leaves under it.
From India, Kannur
4245Under the Act governing plantations and other commercial establishments also similar provisions are available. Since the law governing to the latter is a state Act, there may be difference with regard to the number of leaves. But I think that all states have leave rules which provide for 12 days Earned leave in addition to casual leaves and sick leaves and the Earned leave which is similar to the one said about Factories Act can be carried forward and encashed at the time of leaving.
Please confirm under which Act your establishment comes and then follow the provision relating to leaves under it.
From India, Kannur
Thank you, sir, for your valuable feedback, which is superbly informative. My organisation is registered under the shop and establishment act in Hyderabad, Telangana. Thank you in advance, sir.
From India, Pune
From India, Pune
Telangana Shops and Commercial Establishments Act permits carry forward of earned leaves subject to a maximum of sixty days. Under this Act the maximum number of leaves is 15 days. It is given to those who have worked for 240 days in the preceding year. Unlike Factories Act it is not proportion to the days worked but it is flat 15 days.
The Telangana Shops...Act permits encashment of eight days' leaves every year.
In addition to the earned leave above mentioned, the employees are eligible to take 12 days' leave on account of sickness and 12 days' leave for meeting any reasonable and casual issues.
From India, Kannur
The Telangana Shops...Act permits encashment of eight days' leaves every year.
In addition to the earned leave above mentioned, the employees are eligible to take 12 days' leave on account of sickness and 12 days' leave for meeting any reasonable and casual issues.
From India, Kannur
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg