Dear all
We are preparing Leave encashment.
We have to decide whether Leave encashment should be on
Basic or on Gross,we have tried to convince to employees
about leave encashment on Basic but employees are not convinced.
Please guide
Regards
Pratap M Kamble
9689901446
From India, Pune
1We are preparing Leave encashment.
We have to decide whether Leave encashment should be on
Basic or on Gross,we have tried to convince to employees
about leave encashment on Basic but employees are not convinced.
Please guide
Regards
Pratap M Kamble
9689901446
From India, Pune
Dear Partap,
You may get different answers on your query as observed in recent past. It is made clear that there is no provision for encashment of leave during service period.Encashment of E L is made at the time of full & final settlement.People may have settlement to this effect with the employees.If any employee takes leave during service period then he is paid salary on his full earnings & not on basic then why one should be given encashment benefit on his basic only. In my opinion there is no justification in encashment of leaves on basic salary.
opinion submitted as requested.
Regards,
R.N.Khola
Sr.Associate
Skylark associates, Gurgaon
09810405361
From India, Delhi
You may get different answers on your query as observed in recent past. It is made clear that there is no provision for encashment of leave during service period.Encashment of E L is made at the time of full & final settlement.People may have settlement to this effect with the employees.If any employee takes leave during service period then he is paid salary on his full earnings & not on basic then why one should be given encashment benefit on his basic only. In my opinion there is no justification in encashment of leaves on basic salary.
opinion submitted as requested.
Regards,
R.N.Khola
Sr.Associate
Skylark associates, Gurgaon
09810405361
From India, Delhi
Thank you for the comment
I have feedback from citehr friends that it can be on basic.
And most of the company follow On basic rule.
I Tried it in my company ,but employee were not at all happy with the
Arrangment.
Then we disscussed matter with Managment consultant.
He saw the definition of wages in Payment of wages act,and asked us to
Make to payment according to the definition in the act.
We have to go for that which says on gross salary.
But some friends do belive that it is justified on basic.
Can you comment more .
Regards
Pratap kamble
9689901446
From India, Pune
I have feedback from citehr friends that it can be on basic.
And most of the company follow On basic rule.
I Tried it in my company ,but employee were not at all happy with the
Arrangment.
Then we disscussed matter with Managment consultant.
He saw the definition of wages in Payment of wages act,and asked us to
Make to payment according to the definition in the act.
We have to go for that which says on gross salary.
But some friends do belive that it is justified on basic.
Can you comment more .
Regards
Pratap kamble
9689901446
From India, Pune
Dear Partap
There may be practice for giving encashment on only Basic. The employees can very well deny receiving encashment of leaves on basic but at the same time you can also deny encashment of leaves as there is no provision for encashmet of leaves under various Laws. You will certainly know that an employee can accumulate leaves upto certain limit. I have given the justification for payment on gross salary. Both the sides can not compell each other for their stand. Now you are to see what is to done in the matter.
Regards,
R.N.Khola
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
There may be practice for giving encashment on only Basic. The employees can very well deny receiving encashment of leaves on basic but at the same time you can also deny encashment of leaves as there is no provision for encashmet of leaves under various Laws. You will certainly know that an employee can accumulate leaves upto certain limit. I have given the justification for payment on gross salary. Both the sides can not compell each other for their stand. Now you are to see what is to done in the matter.
Regards,
R.N.Khola
(Labour Law & Legal Consultants)
09810405361
From India, Delhi
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