Dear All
I am familiar with Leave Policy. but just now faced a new problem in Leave Encashment.
If one has not taken any leave and worked for full year and the company doesn't have any Carry Forward policy. in this case, will he be eligible to get the PL/EL encashment??
As per my Finance team
365 days in a year and Associate received the salary for 365 days.
so no PL encashment, if pay 15 days encashment that means Associate will get 365+15= 380 salary in one year. which is wrong.
But i spoke one of my Ex senior HR person, and he says that if the employee has worked full year without any leave, then he will get the Leave encashment because it is over and above of working day and the leave name it self suggest Earned Leave, which he has earned and in that case he will get 365+15 (12.5 Month)days salary in a year.
Please help me to correct the system and suggest the right way so that i can speak to my Finance team and convenience them to follow the right practice .
From India, Bangalore
10I am familiar with Leave Policy. but just now faced a new problem in Leave Encashment.
If one has not taken any leave and worked for full year and the company doesn't have any Carry Forward policy. in this case, will he be eligible to get the PL/EL encashment??
As per my Finance team
365 days in a year and Associate received the salary for 365 days.
so no PL encashment, if pay 15 days encashment that means Associate will get 365+15= 380 salary in one year. which is wrong.
But i spoke one of my Ex senior HR person, and he says that if the employee has worked full year without any leave, then he will get the Leave encashment because it is over and above of working day and the leave name it self suggest Earned Leave, which he has earned and in that case he will get 365+15 (12.5 Month)days salary in a year.
Please help me to correct the system and suggest the right way so that i can speak to my Finance team and convenience them to follow the right practice .
From India, Bangalore
Dear Nirmal,
The employee will get encashment but it depends on your company leave policy because some companies have carry forward policy, some have have encashment policy and some have lapse policy, so check what policy your company is following and if they don't have any policy then try to convince them for encashment.
Regards,
Fahd Khan Sherani
From Pakistan, Karachi
The employee will get encashment but it depends on your company leave policy because some companies have carry forward policy, some have have encashment policy and some have lapse policy, so check what policy your company is following and if they don't have any policy then try to convince them for encashment.
Regards,
Fahd Khan Sherani
From Pakistan, Karachi
Dear Fahd
Thanks for responsing.
But still not getting correct picture, as i am talking about those companies who don't have any carry forward policy and they are also not doing any leave encashment against the PL\EL. I think, ifcompanyydoesn'tt have carry forward policy, then they have to do the Encashment of PL/EL.
Waiting for more response on this.
From India, Bangalore
Thanks for responsing.
But still not getting correct picture, as i am talking about those companies who don't have any carry forward policy and they are also not doing any leave encashment against the PL\EL. I think, ifcompanyydoesn'tt have carry forward policy, then they have to do the Encashment of PL/EL.
Waiting for more response on this.
From India, Bangalore
Dear Nirmal,
the employee will get leave encashment because the individual has not taken any leave in the year and the company also not having the carry forward policy... then u have to provide leave enchasement on salary basis. For exp: In my Company, The company provide CL-14,
EL-30,OPL-2 total-46, in which cl & opl are not encashed, but el will be encashed as per his/her salary. If the individual has used cl & opl only during the year and el remaining 30 then we enchased the full el of the individual as per salary.
Now i think u will understand.
Regards
Ashish
the employee will get leave encashment because the individual has not taken any leave in the year and the company also not having the carry forward policy... then u have to provide leave enchasement on salary basis. For exp: In my Company, The company provide CL-14,
EL-30,OPL-2 total-46, in which cl & opl are not encashed, but el will be encashed as per his/her salary. If the individual has used cl & opl only during the year and el remaining 30 then we enchased the full el of the individual as per salary.
Now i think u will understand.
Regards
Ashish
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg