I am working as a medical representative in Kerala, my company head office located in Gujarat. I need clarification of leave encashment. I have completed 12 years of service with this organisation, one of my colleague left few months back, he was completed 9 years. He have PL balance of 220, but company gave encashment for only 150 days. Is there any law for the maximum limit for leave encashment? is it possible to encash my PL during service?
From India, Kottayam
From India, Kottayam
Good morning Mr Mahesh,
As per the law every employee gets max 15 PL (based on physical working days, will be come down) per annum.
The company will have a policy to protect the PL 30/60/90 days like that. In such case, you need to go through any policy is there in the company.
They will encash only till their eligibility only, rest will be lapsed.
Hope your doubt is cleared, if not please get in touch with me on 9490448544.
Rgds
Ganeswara Rao Perumalla
SDGM - HR & IR
From India, Hyderabad
14As per the law every employee gets max 15 PL (based on physical working days, will be come down) per annum.
The company will have a policy to protect the PL 30/60/90 days like that. In such case, you need to go through any policy is there in the company.
They will encash only till their eligibility only, rest will be lapsed.
Hope your doubt is cleared, if not please get in touch with me on 9490448544.
Rgds
Ganeswara Rao Perumalla
SDGM - HR & IR
From India, Hyderabad
Let me correct Mr Ganeswara Rao that there is a separate law relating to medical representatives, ie, Sales Promotion Employees (Conditions of Service ) Act 1976. Accordingly a sales promotion employee is to be given one earned leave for every eleven days he worked in the preceding year. The leave so earned shall be accumulated upto 180 days (Rule 14 of Sales Promotion Employees (Conditions of Service) Rules 1976. Section 4 of the Act read with Rule 14, provide for encashment of unavailed leaves at the time of his leaving the company or at the time of retirement. It is called cash compensation and the same shall not exceed 120 days. In the case of death, however, the representatives of the deceased employee shall be getting encashment of the entire leave to his credit. Also where a sales promotion employee’s services are terminated for any reason whatsoever (not being termination as punishment), he shall be entitled to cash compensation for the entire earned leave due to him and not availed of. This is a matter of law and I interpret this rule as termination due to closure of the company due to any reason beyond the control of the employer. Termination on account of an employee reaching the age of superannuation will not come under this provision.
A plain reading of the Rules 14 and section 4 make it clear that the maximum leaves that an employee (of a pharma company or ten other industries to which the Sales Promotion Employees.....Act applies) can get encashed while leaving the service is 120 days. If the Management has given encashment of 150 leaves, it should be good. I am not sure whether the company has any policy which provides for accumulation of other leaves, like medical leaves, quarantine leave etc.
From India, Kannur
A plain reading of the Rules 14 and section 4 make it clear that the maximum leaves that an employee (of a pharma company or ten other industries to which the Sales Promotion Employees.....Act applies) can get encashed while leaving the service is 120 days. If the Management has given encashment of 150 leaves, it should be good. I am not sure whether the company has any policy which provides for accumulation of other leaves, like medical leaves, quarantine leave etc.
From India, Kannur
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