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
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2From India, Bangalore
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Hi,
CL & SL will lapse, and PL/EL can be encashed. PL/EL will be credited after completing one year of service with the same company at a rate of 1.25 days per month, totaling 15 days annually. The encashment is mandatory if an employee has a P/E leave balance, but it will be subject to the company's leave policy.
According to the company policy, employees can accumulate a maximum of 40, 48, 60, etc., PLs based solely on the organization's policy. After reaching the maximum accumulation, any excess balance will be automatically encashed if the employee leaves the organization, and the remaining balance will be settled in the Full and Final settlement.
I hope this clarifies your doubt.
Chills 'N' Cheers,
Karthik
9032891379
From India, Vijayawada
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CL & SL will lapse, and PL/EL can be encashed. PL/EL will be credited after completing one year of service with the same company at a rate of 1.25 days per month, totaling 15 days annually. The encashment is mandatory if an employee has a P/E leave balance, but it will be subject to the company's leave policy.
According to the company policy, employees can accumulate a maximum of 40, 48, 60, etc., PLs based solely on the organization's policy. After reaching the maximum accumulation, any excess balance will be automatically encashed if the employee leaves the organization, and the remaining balance will be settled in the Full and Final settlement.
I hope this clarifies your doubt.
Chills 'N' Cheers,
Karthik
9032891379
From India, Vijayawada
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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
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From India, Hyderabad
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Leave encashment is mandatory only at the event of death of an employee, 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
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From India, Ahmadabad
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Dear Satisha,
As per my understanding, Leave Encashment is a non-statutory benefit. Leave encashment is not compulsory. However, if your standing orders state so or if there is any agreement between management representatives and the employer, then only this is binding, i.e., Leave Encashment becomes mandatory.
Thank you,
Ravikiran
From India
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As per my understanding, Leave Encashment is a non-statutory benefit. Leave encashment is not compulsory. However, if your standing orders state so or if there is any agreement between management representatives and the employer, then only this is binding, i.e., Leave Encashment becomes mandatory.
Thank you,
Ravikiran
From India
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Dear Satisha,
As per my understanding, Leave Encashment is a non-statutory benefit. Leave encashment is not compulsory. However, if your standing orders state so or if there is an agreement between employee representatives and the employer, then only this is binding, i.e., Leave Encashment becomes mandatory.
Thank You,
Ravikiran
PS: Ignore my typo error in my previous message.
Attribution: https://www.citehr.com/477562-leave-encashment-labour-law.html#ixzz2mHwaKwuj
From India
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As per my understanding, Leave Encashment is a non-statutory benefit. Leave encashment is not compulsory. However, if your standing orders state so or if there is an agreement between employee representatives and the employer, then only this is binding, i.e., Leave Encashment becomes mandatory.
Thank You,
Ravikiran
PS: Ignore my typo error in my previous message.
Attribution: https://www.citehr.com/477562-leave-encashment-labour-law.html#ixzz2mHwaKwuj
From India
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Dear Satisha,
Leave encashment is compulsory under the "Factory Act 1948 Section 80 - Wages during leave period." During the service period, providing of leave (PL or EL) is compulsory on demand of the employee if applied within the prescribed time (before 7 to 15 days as per company rule). If for any reason the company disallows their leave, the leave will be encashed or compensated. Leave encashment is not compulsory during the service period and depends on the company or firm policy. At the time of separation of an employee for any reason, it will be compulsory to pay a value equal to their balance leave (EL or PL). Encashment must be on gross salary (except for Bonus and Overtime). Any firm can encash leave on Basic Salary only if Basic Salary is deducted in the case of leave without pay (absent) condition.
Regards,
Madhusudan Mishra
From India, Indore
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Leave encashment is compulsory under the "Factory Act 1948 Section 80 - Wages during leave period." During the service period, providing of leave (PL or EL) is compulsory on demand of the employee if applied within the prescribed time (before 7 to 15 days as per company rule). If for any reason the company disallows their leave, the leave will be encashed or compensated. Leave encashment is not compulsory during the service period and depends on the company or firm policy. At the time of separation of an employee for any reason, it will be compulsory to pay a value equal to their balance leave (EL or PL). Encashment must be on gross salary (except for Bonus and Overtime). Any firm can encash leave on Basic Salary only if Basic Salary is deducted in the case of leave without pay (absent) condition.
Regards,
Madhusudan Mishra
From India, Indore
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Dear Sathisha,
As rightly quoted by a few above, it is binding on the employer if it is mentioned in their service regulations only. In nationalized banks (PSU Banks), half of the total accumulated PL will be allowed as Leave Encashment upon resignation, with a maximum of 240 days at the time of retirement or death, and a maximum of 30 days in an LFC cycle of 4 years.
Regards,
Sesha Srinivas
From India
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As rightly quoted by a few above, it is binding on the employer if it is mentioned in their service regulations only. In nationalized banks (PSU Banks), half of the total accumulated PL will be allowed as Leave Encashment upon resignation, with a maximum of 240 days at the time of retirement or death, and a maximum of 30 days in an LFC cycle of 4 years.
Regards,
Sesha Srinivas
From India
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Non-availed EL/PL are mandatory and encashable at the time of separation from the company, for whatever reason, such as resignation, death, termination, discharge, etc. There should be no doubt about it. It is neither at the discretion of the employer nor a policy matter but legally implemented by legislations and enforceable by law, specifically the Factory Act and Shop & Establishment Act (which vary from state to state on accumulation and quantum).
However, CL/SL are not encashable; these lapse at the end of the year.
Regards
From India, Delhi
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However, CL/SL are not encashable; these lapse at the end of the year.
Regards
From India, Delhi
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Employee Benefits.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf