Can anybody suggest how PL encashment is being calculated. (1) Is it on the gross or net salary (2) is the employee eligible for PL till the date he resigns from office? (3) Is there any Act/rules relating to PL encashment prescribed by Labour Act or the decision is on the management?
From India, Madras
From India, Madras
Yes dear,
U can avail the benefit of Pl encashment till date of your resigne.
For calculation of Pl encashment your BASIC + DA and taxable allowance are considered and it is fully exempted under section 10. of the income tax act 1961. It means you do not have to pay any tax on that income.....
Hope u might b clear
for further clarity contact me at
Bye
Take care.
From India, Ahmadabad
U can avail the benefit of Pl encashment till date of your resigne.
For calculation of Pl encashment your BASIC + DA and taxable allowance are considered and it is fully exempted under section 10. of the income tax act 1961. It means you do not have to pay any tax on that income.....
Hope u might b clear
for further clarity contact me at
Bye
Take care.
From India, Ahmadabad
I joined a Pharma co. in June 2005.The co. have policy for 28 days PL every year.PL could have been accumulated upto 90 days. After that, half of the excess PL can be availed and half en-cashed, if employee applied to avail leave but superior has rejected and recorded.
In 2007,the above PL policy is amended through a circular which says that after accumulation of 90 days ,all excess PL may be encashed,if applied to avail PL but rejected by superior.(No need to avail half PL and en-cashment).
We followed the policy guideline and accumulated more than 200 PL in 8 years and 6 months services, but never paid any amount in lieu of excess PL due to paucity of funds but we assured that whenever funds are available, the amount will be released.
Again in 2013,company changed the PL policy which says- Maximum PL accumulation will be 180 days out of which 120 days will be en cashed at the time of separation. However, the en-cashment policy during the job, remained unchanged i.e.applied to avail leave, rejected by superior and recorded.
In the month of November 2013,we were asked to leave the co. due to funds problem. The management decided to downsize the co.
Our account is settled but we have been paid the en-cashement of 120 days only instead of all PL’S which were accumulated because of non approval to avail PL during the job.The management is citing the 120 days clause of current policy,and ignoring other clauses by which our PL accumulated more than 200 days, since we could not availed. My pending amount is approx.Rs.55000.00.
Can I have legal remedy? What are the legal status of our excess PL,not paid?
From India, Delhi
In 2007,the above PL policy is amended through a circular which says that after accumulation of 90 days ,all excess PL may be encashed,if applied to avail PL but rejected by superior.(No need to avail half PL and en-cashment).
We followed the policy guideline and accumulated more than 200 PL in 8 years and 6 months services, but never paid any amount in lieu of excess PL due to paucity of funds but we assured that whenever funds are available, the amount will be released.
Again in 2013,company changed the PL policy which says- Maximum PL accumulation will be 180 days out of which 120 days will be en cashed at the time of separation. However, the en-cashment policy during the job, remained unchanged i.e.applied to avail leave, rejected by superior and recorded.
In the month of November 2013,we were asked to leave the co. due to funds problem. The management decided to downsize the co.
Our account is settled but we have been paid the en-cashement of 120 days only instead of all PL’S which were accumulated because of non approval to avail PL during the job.The management is citing the 120 days clause of current policy,and ignoring other clauses by which our PL accumulated more than 200 days, since we could not availed. My pending amount is approx.Rs.55000.00.
Can I have legal remedy? What are the legal status of our excess PL,not paid?
From India, Delhi
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
PF Deduction_Leave Encashment.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf