Please give me few advantages of leave encashment that is a benefit to an employer and let me know the disadvantage to the employer of availing leave by an employee. please its urgent
From India, Visakhapatnam
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2From India, Visakhapatnam
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Hi Praveena,
Leave encashment in one's service is availed by them due to many reasons. Since you wish to have our views from the employers' point of view, they are like this:
1) Leave Encashment means an employee surrenders certain days of leave and exchanges these days for cash with his/her employer. Such encashment would result in a reduction of the same number of leave days in the leave account of respective employees. This means that such employees are available in their workplaces despite having encashed leave. The "available mandays" will increase, in turn, production and productivity go up.
2) Encashment means a payout from the kitty of the organization, thus the cost of employees in an organization is bound to go up.
3) If employees do not avail leave or if leave applied for is refused (and instead allowed to encash), for whatever reasons, it would affect the mental state of such employees, and thus discontentment in them increases, causing psychological problems which might affect overall productivity and active participation in activities of the firm.
4) Work-life balance in workplaces and the social life of employees will have an adverse effect.
Disadvantages to employers when leave is availed:
1. In some places, if any employee avails leave, it is the primary duty/responsibility of the HoD/HR, as the case may be, to find a suitable person in 'leave vacancy' in order to ensure that production/services to be rendered do not suffer due to the absence of regular employees.
2. In some instances, if an employee who might manage key operations in an establishment is absent on leave, it is certain that the production/output would suffer partially or totally, and there are chances of the plant and other activities coming to a standstill. Therefore, it is obvious that the employer will have to face problems if personnel avail leave, particularly those in key positions, and if there are no substitutes.
From India, Bangalore
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Leave encashment in one's service is availed by them due to many reasons. Since you wish to have our views from the employers' point of view, they are like this:
1) Leave Encashment means an employee surrenders certain days of leave and exchanges these days for cash with his/her employer. Such encashment would result in a reduction of the same number of leave days in the leave account of respective employees. This means that such employees are available in their workplaces despite having encashed leave. The "available mandays" will increase, in turn, production and productivity go up.
2) Encashment means a payout from the kitty of the organization, thus the cost of employees in an organization is bound to go up.
3) If employees do not avail leave or if leave applied for is refused (and instead allowed to encash), for whatever reasons, it would affect the mental state of such employees, and thus discontentment in them increases, causing psychological problems which might affect overall productivity and active participation in activities of the firm.
4) Work-life balance in workplaces and the social life of employees will have an adverse effect.
Disadvantages to employers when leave is availed:
1. In some places, if any employee avails leave, it is the primary duty/responsibility of the HoD/HR, as the case may be, to find a suitable person in 'leave vacancy' in order to ensure that production/services to be rendered do not suffer due to the absence of regular employees.
2. In some instances, if an employee who might manage key operations in an establishment is absent on leave, it is certain that the production/output would suffer partially or totally, and there are chances of the plant and other activities coming to a standstill. Therefore, it is obvious that the employer will have to face problems if personnel avail leave, particularly those in key positions, and if there are no substitutes.
From India, Bangalore
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg