Hi!
As per the general leave rules, in the industry, the leave encasement should be ideally done at the end of the Leave Year (Jan / Mar depending on the Co. Policy).
However, the employee can be given the liberty to claim the balance EL of the previous year anytime during the current Leave year.
The rate at which the EL are encashed will be the current Gross Pay.
One should bare in mind that, the Leave Encashment amount is taxable.
Max Nos. of EL one can accumulate should not exceed more than 90 days.
From India, Pune
As per the general leave rules, in the industry, the leave encasement should be ideally done at the end of the Leave Year (Jan / Mar depending on the Co. Policy).
However, the employee can be given the liberty to claim the balance EL of the previous year anytime during the current Leave year.
The rate at which the EL are encashed will be the current Gross Pay.
One should bare in mind that, the Leave Encashment amount is taxable.
Max Nos. of EL one can accumulate should not exceed more than 90 days.
From India, Pune
Dear Sanjay,
Mr. Khola has given the right answer. He has gone to great extent to give you a choice of Acts to choose from.
Once you are able to decide if your firm is a Factory, Shop/Establishment, Mine, Plantation, the you can read the related Act and understand the provision of accumulation of EL.
Well leave encashment for existing employees can be made in instalments. But for those who are leaving the Co. it has to be paid alongwith Full & Final Settlement, in one go.
Vasant Nair
From India, Mumbai
90Mr. Khola has given the right answer. He has gone to great extent to give you a choice of Acts to choose from.
Once you are able to decide if your firm is a Factory, Shop/Establishment, Mine, Plantation, the you can read the related Act and understand the provision of accumulation of EL.
Well leave encashment for existing employees can be made in instalments. But for those who are leaving the Co. it has to be paid alongwith Full & Final Settlement, in one go.
Vasant Nair
From India, Mumbai
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