which leaves are en cashed? write their names please.

Are sick leave and casual leave encashed?

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Hi,

Yes, sick leave and casual leave can be encashed.

No, only EL is subjected to encashment, subject to acceptance by the employer.

Yes, only EL/PL can be encashed. SL/ML, as you know, can only be availed based on medical advice/certificate, and CL is valid only for the respective year, which cannot be accumulated.

A very few establishments permit a limited number of days of unutilized CL to be converted to EL/PL where, due to official exigencies, the concerned individual couldn't avail them, or they can be carried over to the next year for a few months. Failing which, those days elapse.

If the leave policy doesn't permit any encashment but only allows for availing leave, there is no solution. However, on retirement, EL/PL in the credit of the leave account can be encashed in full, subject to the maximum permissible limit.

Dear colleague,

No law requires you to encash SL/CL. As regards PL/EL, only the unavailed quantum is encashable on termination of employment. While in service, it depends on company policy whether to encash it or not.

Regards,
Vinayak Nagarkar
HR Consultant

Thanks to all of you.

I just confirmed this thing and want to know the reason. Why are these leaves not encashed?

Dear colleague,

The reason why is simple. The law does not compel you. However, there is no bar for a company to adopt a policy to encash CL/SL by framing proper rules. But such a practice is not rampant in industries.

Regards,
Vinayak Nagarkar
HR Consultant

Thank you, Vinayak, sir. I joined this company in October, and they gave these leaves encashed to all staff and workers; now they said we will not encash these leaves at the end of the year. How can I manage them? Please guide me and give me a solution for that.

What is the formula for the encashment of PL/EL at the end of every year? My company encashes this leave every year.

Hi Pradeep,

Please read the post of Vinayak Nagarkar; that is the position. I may add, encashment of EL/PL is not a statutory benefit to employees under any Act or Law/rules framed by governments. However, this is being extended ONLY by some organizations but not followed by all. Even wherever this is followed, the procedure is not one and the same or common for all just because there are no governing statutory provisions.

For your information, to my knowledge, the following methods are in vogue:
1. Allow 50% of the balance days available at credit of EL/PL once in a year.
2. Permit encashment of any number of days at their will, but less than 50% of leave once in a year.
3. Approve encashment limiting to max. 50% of leave as and when LTA/LTC is availed by the employee concerned.
4. Some industries issue a common circular to all eligible employees to apply for encashment as and when convenient to the management (but limiting to 50%), not more than once in a year.
5. Organizations where there is a lesser number of employees, like 20, 30, etc., consider encashment at random, at their discretion, or limiting to the funds earmarked/budgeted on a first-come-first-served basis using discretionary powers delegated to authorized authorities.

However, encashment as part of F&F at the time of leaving either on resignation or retirement, in full but subject to the maximum prescribed by the firms concerned as per their leave rules is a common practice.