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Ram K Navaratna
244

Leave Encashment Provisions

Dear All

If you have case laws pertaining to leave encashment at the time of separation and during service period

2. Views, position, practices pertaining to notice period and availing of leave accumulation

Appreciate your inputs in this forum as well to;

Thanks and best wishes

Ram K Navaratna

From India, Bangalore
Madhu.T.K
4244

Number of Leaves an employee is entitled to, carry forward of the unavailed leave, the maximum number of such accumulations and encashment will depend upon the nature of industry and the state rules in this regard. Therefore, there is no need to refer any case studies but you can refer to the Act to which your establishment applies. If it is a factory, then refer to Factories Act, if a plantation refer to Plantation Labour Act and if a shop or commercial establishment, refer to your state Shops and Commercial Establishments Act.

None of these Acts permits encashment while in service though the balance of earned leave shall be encashed at the time of discharge of any employee. The Factories Act permits accumulation of 24 leaves whereas it is 30 under various Shops Act.

From India, Kannur
Ram K Navaratna
244

Dear Madhu

Thank you. Position of the law is clear.

The trend is many employees without notice or non complying notice clause disappear. But leave accumulated in their account.?

Employers action?

Thanks

Ram K Navaratna

From India, Bangalore
Madhu.T.K
4244

If the employee concerned is coming under 'workman' then he may be given leave encashment. This is because there is no such provision that a worker should give advance notice if he wishes to leave the company but to terminate him from service, the employer has to give notice.
At the same time, if not coming under 'workman', you may set off leave encashment against notice period. No issue.

From India, Kannur
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