Leave encashment .. Please help - central govt.. CiteHR
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Leave Encashment .. Please Help - Central Govt

leenakhanolkar Started The Discussion:

Hello Everyone,

Since I am working on leave policy of my organisation I require the following information :


According to law..How many unused leaves can be carried forward? Is there any restriction on no.of days to be accumulated? Is there any pre decided % of unused leaves to be encashed??

Regards

Leena.

acchr - Contributing Member
Dear Lina,

There is no mandatory provision in this respect of accumulation of leave. Only mandatory requirement is encashment of PL/EL on employee's exit.

Others would agreed with my views...

ACCHR

leenakhanolkar - Contributing Member
Thanks ACC HR for the reply... but i think unders Mumbai Shops and establishment Act we may encash the accumulated leaves above 240 days with 60-40%.. i.e. 60% carry forward and 40% encashment...

" I need to know.. if there is any law laid for any encashment .. I just got this information verbally but i need the notification about the same ... If any one can help in this regards......

vineetsaini19 - Contributing Member
HI There is not a particular law regarding the same but Most of the times 2/3rd of the total EL/PL can be encashed at the end of the year and the balance is carried forward. Regards Vineet

mdevi442 - Contributing Member
hi Leena,

Generally most of the companies follow the central Government policy for encashment of the leaves.
As ours is a s/w co., & we follow Central Govt's leave structure. ie. 7 CL, 7 SL & 20 AL per year.
CL cannot be carried forward after an year.
SL can be carried forward to the next year but cannot exceed 20.
AL in some companies are encashable and some companies ask the employees to avail them within that particular year in 2 installments like 10 days at a time(including holidays).


hope this will help you.


gaggan_sahni - Contributing Member
In My organization we give 21 days yearly PL / EL to an employee out of which maximum 9 can be encashed subject to leaves unavailed and pending to his account and rest can be carried forward to next year.. The maximum accumulation he can do is 50 days and beyond that all leaves are lapsed on a year to year basis. So the Maximum encashment he can avail is 50 days incase of resignation or on his disassociation with the co. due to any reasons..(But he cannot encash these accummulated leaves during his stint with the organisation).. As on a annual basis he can encash 9 days only....

rajanassociates - Contributing Member
Dear

Depends on the respective State [Shops &Establishment Act].It has the respective provision.


In Mumbai Leave with pay can be accumulated upto 42 days. In Karnataka the total number of the days of leave that may be carried forward to a succeeding year shall not exceed thirty days in the case of an adult.
In Andhra [ as per Shops and Establishments Act ] Leaves: Every employee who has served with 240 days or more during a continuous period of 12 months in any establishment shall be entitled during the subsequent period of twelve months , to leave with wages may be accumulated upto a maximum period of sixty days

Generally, PLs can be accumulated Up to 45 days.
If at the time of credit of PL the accumulation goes beyond 45 days, the excess leave over and above 45 days shall automatically lapse.
Similarly, PLs can be encashed keeping 30 days in balance. Entire leave credited to employee’s a/c will be encashed at the time of resignation/retirement.These rules differ from state to state and company to company.The above encashment rule is based on Delhi Shop's & establishment Act.


With Regards
V.Sounder Rajan
VS Rajan Associates,
Advocates & Notaries,
No.27, Ist Floor, Singapore Plaza,
No.164, Linghi Chetty Street,
Chennai - 600 001.
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athul79 - 
dear leena
iam in a psu, where we can accumulate a maximum of 240 days privelege/earned leave.No PL/EL gets accrued beyond 240 days.To avoid the overflowing PL which lapses, we usually encash PL.Butwe need not wait for maximum accrual of PL. .
Reg. PL encashment ,maximum of 30 days can be encashed once every 2 years.you may fix this as encashment block which may be a block of 2 financial years or 2 calendar years for easy administration.

with regards,

aadhirai.g

Dear Mr Sunder Rajan,

Is there any leave policy for Gujarat state also the way you have mentioned for Mumbai and Karnataka state??....please guide me on rules n regulation on Gujarat state policy related to leaves in software company??

Thanks in advance..
Vasanti

Hi
I'm Yuva. I'm a fresh HR. Can anyone help me with proration of leave. In my company we have 7 sick leaves, 7 casual leaves and 12 annual leaves for a year, i have an employee joined my office on july 2008... will he also enjoy the same no of leaves as other employees do or the leave has to be prorated.. if yes kindly help me with the same

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