Dear All ,
Wanted a help from seniors again.
Can there be a leave encashment from employee ?
Case : In my organization , which is a startup , we have allotted leave on prorata basis (24 = 14 PL + 10 CL for year ) at the start of year itself , question is, if a employee leaves the organization in the month of April - June and has consumed all his leaves in these entire 6 months of his /her service , in this case can we deduct his/her leave (PL) consumed already for another 6 months in Full & Final Settlement.
Anyways he/she has worked for 6 months and consumed over 24 leaves at fullest and now leaving the organization, can here the loss of organization been seen as we have already paid the entire leave.
From India, Pune
Wanted a help from seniors again.
Can there be a leave encashment from employee ?
Case : In my organization , which is a startup , we have allotted leave on prorata basis (24 = 14 PL + 10 CL for year ) at the start of year itself , question is, if a employee leaves the organization in the month of April - June and has consumed all his leaves in these entire 6 months of his /her service , in this case can we deduct his/her leave (PL) consumed already for another 6 months in Full & Final Settlement.
Anyways he/she has worked for 6 months and consumed over 24 leaves at fullest and now leaving the organization, can here the loss of organization been seen as we have already paid the entire leave.
From India, Pune
Let me put it in another way.
Leave encashment from employee means deduction of leave granted to an employee if he leaves, right?
A leave once granted is granted and you cannot take it out saying that you are leaving the establishment and whatever granted to you by me should be given me back.
Now the question the employee may ask you if you deduct the leaves already given to him as paid is " if I were not entitled to the leaves, why were I given it?"
Now coming to the HR side, I would say that leaves are regulated partially by the law in force and partially by the policies of the establishment. If your establishment is an establishment covered by Shops and Commercial Establishments Act, the provisions regarding leaves as given in the said Act will say how many leaves an employee should get every year and on what conditions the employee will get it. This Act is a state Act and hence the provision may change from state to state and without knowing in which state your establishment is, we cannot guide you properly. But most of the states have earned leaves, sick leaves and casual leaves as leaves admissible. The number of days eligibility may change. Earned leave is given to an employee who has worked for 12 months. But sick leaves and casual leaves are given during the first year of service also.
Earned leave credited are the leave earned by an employee for the service he has rendered in the preceding year. He can take it or if keep it to be carried forward to next year. If he leaves, he can encash it. Therefore, by deducting the leaves when he leaves the company, you will be taking away one of his legal rights.
In the case of sick leaves and casual leaves you are expected to give it proportion to the months. But again, if you have granted it, you should not take it back.
From India, Kannur
4249Leave encashment from employee means deduction of leave granted to an employee if he leaves, right?
A leave once granted is granted and you cannot take it out saying that you are leaving the establishment and whatever granted to you by me should be given me back.
Now the question the employee may ask you if you deduct the leaves already given to him as paid is " if I were not entitled to the leaves, why were I given it?"
Now coming to the HR side, I would say that leaves are regulated partially by the law in force and partially by the policies of the establishment. If your establishment is an establishment covered by Shops and Commercial Establishments Act, the provisions regarding leaves as given in the said Act will say how many leaves an employee should get every year and on what conditions the employee will get it. This Act is a state Act and hence the provision may change from state to state and without knowing in which state your establishment is, we cannot guide you properly. But most of the states have earned leaves, sick leaves and casual leaves as leaves admissible. The number of days eligibility may change. Earned leave is given to an employee who has worked for 12 months. But sick leaves and casual leaves are given during the first year of service also.
Earned leave credited are the leave earned by an employee for the service he has rendered in the preceding year. He can take it or if keep it to be carried forward to next year. If he leaves, he can encash it. Therefore, by deducting the leaves when he leaves the company, you will be taking away one of his legal rights.
In the case of sick leaves and casual leaves you are expected to give it proportion to the months. But again, if you have granted it, you should not take it back.
From India, Kannur
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