Dear All,
I have a query that whether leave encashment is calculated @ 26days or the month days. Is there any law pertaining to it?
Also acc. to factories act an employee can accumulate leaves for max of 30 days, can we encash leaves of 41days to an employee.
Is there any legal obligation for employer to encash leaves on a yearly basis or is it done at the time of exit?
Kindly reply with your feedback urgently.
warm Regards
Sumiksha Suri


As per factories act mimimum 30 Earned leave should be kept so that in case of emergency the employee can utilize the same. If you are encashing the same per every year then in case of emergency how you are going to his / her absence in attendance muster wheather as Absent / Leave ???
Hope I have clrified your doubt???

From India, Pune
Dear Prashant,
Thanks for the prompt reply...but i still have a lot of doubts in my mind...
I asked is there any law prevailing to this that the leave encashments should be done yearly or we can do the same process at the time of employee exit? &whether leave encashment is calculated @ 26days or the month days


Dear Sir
You are right as per factories act leave incashment is calculated by @26 days
please under stand by this
on 31st of Dec 2009
01. One person have credited Earned leave 41 days
02. He can demanded the leave incashment only for 10 days
03. Calcuation must be made on @26 days
04. Employer can offer him avail leave in the next year jan 2010 but must be approved before 31st Dec 2009
05. If employee and employer mutually agree than total EL balance can be converted in next year 2010
06. Than employee can avail the leave by prior intemation and application for approvel.
It means the employer must be lible to provide the benefit of employees dues

From India, New Delhi
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