Dear Seniors, Kindly respond to my query for my company's leave encashment policy.
We do encash leave in July of each year. The cut-off date for leave encashment is 30th June each year. We encash balance leave collectively for all employees on pro rate basis. That was fair enough.
But this year, some suggestions came from management to encash only allotted leave instead of any increased leave on pro-rata basis which is due to date of joining before June last year. This way those leave before June last year will lapse.
For example, if an employee joined in Jan 2019, he was entitled to leave encashment in July 2020. He spent his probationary period of three months and in April 2019 after confirmation of his service he could avail leave till June 2020 on a pro-rata basis. But now as per new suggestions, he will be allowed total number of earned leave in July 2019 and would lapse his previous balance. This way all employees would avail the only total earned leave for a year at cut off date 30th June 2020.
Your expert views are requested. I'm an old member of this group and have always gathered a lot of valuable information from seniors. Kindly explain is there any legal conflict in doing so?
From Pakistan
2We do encash leave in July of each year. The cut-off date for leave encashment is 30th June each year. We encash balance leave collectively for all employees on pro rate basis. That was fair enough.
But this year, some suggestions came from management to encash only allotted leave instead of any increased leave on pro-rata basis which is due to date of joining before June last year. This way those leave before June last year will lapse.
For example, if an employee joined in Jan 2019, he was entitled to leave encashment in July 2020. He spent his probationary period of three months and in April 2019 after confirmation of his service he could avail leave till June 2020 on a pro-rata basis. But now as per new suggestions, he will be allowed total number of earned leave in July 2019 and would lapse his previous balance. This way all employees would avail the only total earned leave for a year at cut off date 30th June 2020.
Your expert views are requested. I'm an old member of this group and have always gathered a lot of valuable information from seniors. Kindly explain is there any legal conflict in doing so?
From Pakistan
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Leave Policy.doc