Dear All, Please guide me under shops & establishment act leave encashment is mandatory or management decision, in which labour law it is mentioned. Regards Sathish HR
From India, Bangalore
2From India, Bangalore
Hi
CL & SL will lapse and PL/EL can be en cashed.
PL/EL will come after completion of 1year of service with the same company @ 1.25/Month = 15/Annam.
The encashment is mandatory if employee have the P/E leave balance but it will be guided by the leave policy of the company.
As per company policy employee can accumulate max 40, 48, 60 etc P Ls its purely based on organizations policy, after the excess accumulation the balance will get en cashed automatically if the employee leaves the organization the same will be settled in F & F.
Hope this clarifies your doubt...,
Chills 'N' Cheers
Karthik
9032891379
From India, Vijayawada
CL & SL will lapse and PL/EL can be en cashed.
PL/EL will come after completion of 1year of service with the same company @ 1.25/Month = 15/Annam.
The encashment is mandatory if employee have the P/E leave balance but it will be guided by the leave policy of the company.
As per company policy employee can accumulate max 40, 48, 60 etc P Ls its purely based on organizations policy, after the excess accumulation the balance will get en cashed automatically if the employee leaves the organization the same will be settled in F & F.
Hope this clarifies your doubt...,
Chills 'N' Cheers
Karthik
9032891379
From India, Vijayawada
hi min ELS enchantment will be after 60. ie u can en cash the ELs after crossing 60 ELS only . as per act. factory act.1948 regds srihari
From India, Hyderabad
From India, Hyderabad
Leave encashment is mandatory only at the even of death of an employee or retirement or on leaving the company. Otherwise the PL/EL will lapse automatically after completion of the limit as mentioned by the Leave Policy of the said company.
From India, Ahmadabad
From India, Ahmadabad
Dear Satisha,
As per my understanding Leave Encashment is an non statutory benefit. Leave encashment is not compulsory.
But if your standing orders says so or if there is any agreement between management representatives and employer than only this is bending .ie Leave Encashment becomes mandatory.
Thank You
Ravikiran
From India
As per my understanding Leave Encashment is an non statutory benefit. Leave encashment is not compulsory.
But if your standing orders says so or if there is any agreement between management representatives and employer than only this is bending .ie Leave Encashment becomes mandatory.
Thank You
Ravikiran
From India
Dear Satisha,
As per my understanding Leave Encashment is an non statutory benefit. Leave encashment is not compulsory.
But if your standing orders says so or if there is any agreement between employee representatives and employer than only this is bending .ie Leave Encashment becomes mandatory.
Thank You
Ravikiran
PS: Ignore my typo error in my previous message
attribution https://www.citehr.com/477562-leave-...#ixzz2mHwaKwuj
From India
As per my understanding Leave Encashment is an non statutory benefit. Leave encashment is not compulsory.
But if your standing orders says so or if there is any agreement between employee representatives and employer than only this is bending .ie Leave Encashment becomes mandatory.
Thank You
Ravikiran
PS: Ignore my typo error in my previous message
attribution https://www.citehr.com/477562-leave-...#ixzz2mHwaKwuj
From India
Dear Satisha
Leave Encashment is compulsory under "Factory Act 1948 Section 80 Wages during leave period"
During the service period, providing of leave(PL or EL) is compulsory, on demand of employee, If applied within prescribed time (before 7 to 15 days as per company rule) If any reason company disallow their leave, Leave will be encashed or compensate. Leave encashment is not compulsory during the service period, depend on company or firm policy. On the time of separation of employee by any reason it will be compulsory to pay Value equal to their balances leave (EL or PL). Encashment must be on gross salary (Except Bonus and Overtime). Any Firm can encash leave on Basic Salary only If Basic Salary deducted in case of leave without pay (absent) conditon.
Regards
Madhusudan Mishra
From India, Indore
Leave Encashment is compulsory under "Factory Act 1948 Section 80 Wages during leave period"
During the service period, providing of leave(PL or EL) is compulsory, on demand of employee, If applied within prescribed time (before 7 to 15 days as per company rule) If any reason company disallow their leave, Leave will be encashed or compensate. Leave encashment is not compulsory during the service period, depend on company or firm policy. On the time of separation of employee by any reason it will be compulsory to pay Value equal to their balances leave (EL or PL). Encashment must be on gross salary (Except Bonus and Overtime). Any Firm can encash leave on Basic Salary only If Basic Salary deducted in case of leave without pay (absent) conditon.
Regards
Madhusudan Mishra
From India, Indore
Dear Sathisha,
As rightly quote by few above, it is a binding on employer if it mentioned in their service regulations only. In the nationalized banks (PSU Banks), half of the total accumulated PL will be allowed as Leave Encashment upon resignation, maximum of 240 at the time of retirement or death and maximum of 30 days in a LFC cycle of 4 years.
Regards,
Sesha Srinivas
From India
As rightly quote by few above, it is a binding on employer if it mentioned in their service regulations only. In the nationalized banks (PSU Banks), half of the total accumulated PL will be allowed as Leave Encashment upon resignation, maximum of 240 at the time of retirement or death and maximum of 30 days in a LFC cycle of 4 years.
Regards,
Sesha Srinivas
From India
Non availed EL/PL are mandatory encashable at the time of seperation from company by whatsoever reason i.e resignation, death, termination,discharge etc.
there should not be doubt about it. Its neither a discreation of Employer, nor a policy matter but legally implemented by Legislations and enforceable by law viz, Factory Act & Shop & Establishment Act ( differ from state to state on accumulation and quantam).
However CL/SL are not encashable these lapse at the end of year.
Regards
there should not be doubt about it. Its neither a discreation of Employer, nor a policy matter but legally implemented by Legislations and enforceable by law viz, Factory Act & Shop & Establishment Act ( differ from state to state on accumulation and quantam).
However CL/SL are not encashable these lapse at the end of year.
Regards
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