1.Can any one explain the concept of Encashment of leaves in detail manner? How it is calculated? 2.What is the minimum wage Rates for Andhrapradesh different skills people in private sector.
From India, Hyderabad
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From India, Hyderabad
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Dear Rajesh,
Encashment of leave refers to the facility to surrender the unavailed leave either periodically or on the termination of employment for cash benefit in respect of an employee. Not all kinds of leave are covered by this arrangement, but any leave of accruing nature like E.L, P.L, or Annual Leave with Wages as per the respective establishment-specific law, that too on termination alone, and it is a statutory payment to be reflected in the F&F settlement. In practice, most employers permit it every year at the request of their employees. The money value of surrendered leave should be equal to the amount of salary the employee would have received but for such leave. In other words, the gross salary payable minus certain allowances like those paid to facilitate his actual work, such as conveyance allowance, heat allowance, night shift allowance, washing allowance, and the like, should be paid.
Your second question seems vague to me. It would be better to refer to the A.P. Govt. Labor Department website.
Thank you.
From India, Salem
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6185Encashment of leave refers to the facility to surrender the unavailed leave either periodically or on the termination of employment for cash benefit in respect of an employee. Not all kinds of leave are covered by this arrangement, but any leave of accruing nature like E.L, P.L, or Annual Leave with Wages as per the respective establishment-specific law, that too on termination alone, and it is a statutory payment to be reflected in the F&F settlement. In practice, most employers permit it every year at the request of their employees. The money value of surrendered leave should be equal to the amount of salary the employee would have received but for such leave. In other words, the gross salary payable minus certain allowances like those paid to facilitate his actual work, such as conveyance allowance, heat allowance, night shift allowance, washing allowance, and the like, should be paid.
Your second question seems vague to me. It would be better to refer to the A.P. Govt. Labor Department website.
Thank you.
From India, Salem
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Sir,
I would like to confirm the following in regard to Leave encashment:
(a) An employee starts earning leave at a rate of 1.25 days per month from the date of joining but is not allowed to utilize Earned Leave (EL) during the probation period. Assuming that as per company policy, the probation period is 6 months and in the scenario where an employee resigns after serving 4 months (EL = 1.25 x 4 = 5 days), is it mandatory to pay this amount at the time of Full and Final settlement (F&F)?
(b) For companies that follow a 5-day work routine, can we use the following formula to calculate the leave encashment amount:
Last drawn gross salary / 22 x Earned leave balance.
I would appreciate your input on the above two points.
Thanks
From India, Visakhapatnam
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I would like to confirm the following in regard to Leave encashment:
(a) An employee starts earning leave at a rate of 1.25 days per month from the date of joining but is not allowed to utilize Earned Leave (EL) during the probation period. Assuming that as per company policy, the probation period is 6 months and in the scenario where an employee resigns after serving 4 months (EL = 1.25 x 4 = 5 days), is it mandatory to pay this amount at the time of Full and Final settlement (F&F)?
(b) For companies that follow a 5-day work routine, can we use the following formula to calculate the leave encashment amount:
Last drawn gross salary / 22 x Earned leave balance.
I would appreciate your input on the above two points.
Thanks
From India, Visakhapatnam
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Dear Friend,
A "Probationer" is also a regular employee undergoing an initial phase of his service of a definite duration as fixed in the contract of employment only for the purpose of assessment of his suitability to the job by the employer. Therefore, as far as eligibility and entitlement of statutory service benefits like leave, holidays, etc., are concerned, no law applicable to the establishment makes any differentiation in respect of employees as probationer, confirmed, contractual, and the like. If there is no statutory condition in the establishment-specific law as to availment of E.L after the lapse of a particular period, the refusal to grant E.L to an employee solely on the ground of his probation is certainly illegal. In any case of termination of employment, the E.L at the credit of the concerned employee's leave account should be included in his/her F&F settlement of dues. It is mandatory.
Whatever the working pattern of the establishment like 5-Day week or 6-Day week, the holidays are paid holidays only. Therefore, for the sake of calculation of the cash value of unavailed E.L, divide the Gross salary by 30.
From India, Salem
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A "Probationer" is also a regular employee undergoing an initial phase of his service of a definite duration as fixed in the contract of employment only for the purpose of assessment of his suitability to the job by the employer. Therefore, as far as eligibility and entitlement of statutory service benefits like leave, holidays, etc., are concerned, no law applicable to the establishment makes any differentiation in respect of employees as probationer, confirmed, contractual, and the like. If there is no statutory condition in the establishment-specific law as to availment of E.L after the lapse of a particular period, the refusal to grant E.L to an employee solely on the ground of his probation is certainly illegal. In any case of termination of employment, the E.L at the credit of the concerned employee's leave account should be included in his/her F&F settlement of dues. It is mandatory.
Whatever the working pattern of the establishment like 5-Day week or 6-Day week, the holidays are paid holidays only. Therefore, for the sake of calculation of the cash value of unavailed E.L, divide the Gross salary by 30.
From India, Salem
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