hi, I have just joined as an HR executive in this company. I have a doubt about unused EL encashment. Our employee manual mentions'In order to be paid against unused EL an employee must put in a minimum of two years of service with the company.'Is this as per the law ????
From India, Delhi
2From India, Delhi
earned leave is accumulated as per the policy of the company OR encashed at the time of retirement/death or in the case of leaving the compnay because it is earned by the employee on the basis of actual work days put by the concerned employee.The employer can't deny the encahment of the same.
As per law an employee who works at least for 240 days in the preceding year is eligible for Earned Leave. That means he earns leave by working. If he doesnot avail such leave in the succeeding year he can encash at the end of the year. Year for the purpose of leave calculation is calender year. However, variations not inferior to general rules will be permitted provided the Standing Orders of the company permits. Therefore, if the standing orders (which is certified after getting approval of employees) provides for encashment of EL after two years of service only, then such provision will be valid.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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