Dear Sir, Can you clarify me on leave encashment? Whether an employee is liable to get all balance earned leave payment when an employer releases the employee from its firm? Thank you
From India, New Delhi
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From India, New Delhi
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Dear Sir,
An employee worked for three (3) years. He is entitled to 3 days per month of EL. He did not take any leave for the last three years. Now he is leaving the company. Does he entitled to leave encashment of 36 * 3 = 108 days of EL? If so, is it taxable as per the rules of the Income Tax Act?
Your kind comments on this are invited.
Thanking you,
P. Hrishikesh Singh
From India, New Delhi
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An employee worked for three (3) years. He is entitled to 3 days per month of EL. He did not take any leave for the last three years. Now he is leaving the company. Does he entitled to leave encashment of 36 * 3 = 108 days of EL? If so, is it taxable as per the rules of the Income Tax Act?
Your kind comments on this are invited.
Thanking you,
P. Hrishikesh Singh
From India, New Delhi
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As per many leave policy of the companies it should like encashing leaves at the time of F&F maximum for 90 dyas
From India, Anantapur
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20From India, Anantapur
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Yes, an employee is "entitled" to receive payment for his unused leave through Leave Encashment. However, some companies have strict policies regarding Leave Encashment. For instance, if an employee leaves during the probation period, they may not be eligible for Leave Encashment. Additionally, if an employee absconds, they will not be entitled to any Leave Encashment.
From India, Mumbai
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From India, Mumbai
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Legal Clarification on Absconding Employee, Contract Labour Engagement & Leave Entitlement Ammen.pdf
SC -PF judgment on No PF on Leave encashment.doc