Dear All, As per the policy, we are crediting EL only after the employee completes one year of service. Crediting of 15 days of EL happens in January of every year.
When an employee resigns in the middle of the year, say, 1st Oct,
• We are deducting the leave on a pro-rata basis, in this case for 3 months (OND) which is 3.75 days and
• Encashing the balance left.
Is this practice correct? or should we add the current year's leave also during FNF and pay the employee for the balance left of the previous year + the leaves of the current year (from Jan to Oct in the above example)
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When an employee resigns in the middle of the year, say, 1st Oct,
• We are deducting the leave on a pro-rata basis, in this case for 3 months (OND) which is 3.75 days and
• Encashing the balance left.
Is this practice correct? or should we add the current year's leave also during FNF and pay the employee for the balance left of the previous year + the leaves of the current year (from Jan to Oct in the above example)
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On termination of employment, the encashment of earned leave, referred to by various names, is a statutory terminal benefit in almost all establishment-specific labor laws, subject to the ceiling on its accumulation as fixed therein. The accumulation of earned leave is a continuous process over the years, based on the leave earned and availed by the employee each year.
In the event of termination of employment before the completion of a year, eligibility for earning leave only occurs when the outgoing employee has completed 240 days of service within the service period before termination. In such a scenario, the leave earned during the year must be calculated and added to the leave balance for the purpose of encashment. Otherwise, it is not necessary.
From India, Salem
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6108In the event of termination of employment before the completion of a year, eligibility for earning leave only occurs when the outgoing employee has completed 240 days of service within the service period before termination. In such a scenario, the leave earned during the year must be calculated and added to the leave balance for the purpose of encashment. Otherwise, it is not necessary.
From India, Salem
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