How many EL's can be encashed and accumulated????????
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How many EL's can be encashed and accumulated????????

vineetsaini19 Started The Discussion:

Hi All,

In our organization, employees have accumulated 40 -50 PL's.

Now they are asking for encashment. Our HR Policy is also not clear on this.

Kindly suggest the right way so that MAXIMUM HOW MANY PL's CAN BE ACCUMULATED AND ABOVE WHAT NO. THEY CAN BE ENCASHED,.

Thanks,
Vineet

carmelshyam1@gmail.com - Member Since: Feb 2009
Hi Hi dear this is varied from organizatin to organization.You just check the previous Records of your organizaton and see how they managed to give. Regards SHYAM

sankarasetti - Member Since: Feb 2008
First you have to frame HR policy for PL encashment, there is no statutory proceedure in leave encashment. Do as your management wish.

R.N.Khola - Member Since: Feb 2009
Dear Vineet,

You have not mentioned the name of the Act under which your unit is covered i.e Punjab Shops Act,1958 or The Factories Act,1948.Leaves provisions are there in both the enactments. It is made clear that there is no provision in the labour laws for encashment of leave during service period but these are encashed at the time of making of full & final payment to the employee. Maximum no of leaves which can be encashed is 30 under EL head. If the mgt. wishes then this limit can be increased.

Regards,


R.N.Khola
Sr. Associate
Skylark Associates, Gurgaon (Haryana)
(Labour Law & Legal Consultants)
09810405361

vineetsaini19 - Member Since: Aug 2008
Thanks for the responses. If maximum 30 can be encashed. Please guide maximum how many can be accumulated.????/ Vineet

R.N.Khola - Member Since: Feb 2009
Dear An employee can accummulate 30 E L. Regards, R.N.Khola Sr. Associate Skylark Associates, Gurgaon (Haryana) (Labour Law & Legal Consultants) 09810405361

Gunjan Sarojwal - Member Since: Jun 2007
Hi,

please go through this link. Nothing has been mentioned about the leave encashment. But u may find some related info:

http://pblabour.gov.in/pdf/acts_rule...al_holiday.pdf

roshan1987 - Member Since: Oct 2008
Dear.....

The organisation should make a leave policy wherein all the leaves like sick leave, casual leave, privilege leave or earned leave are clearly defined... As far as EL is concerned.....
if an employee, has 50 EL balance.. then a policy should be made that at the end of every year 20 EL should be kept balanced and that to EL can be availed only thrice in a year. So and employee can avail EL encashment thrice and that to keeping 20 balance...for that year....

jai bakshi - Member Since: Apr 2009
dear vineet, greatings of the day, as per the punjab shops and commercial establishment act 1956, accimulation of pl is upto 30, so u can encash the balance leave as per ur organisation’s rule

jaya@avvasinfotech.com - Member Since: Oct 2008
Dear Vineet,

Please find the below information on E.L.'s....

EARNED LEAVE (EL)

ELIGIBILITY:

1. All permanent Staff.
2. EL is calculated for the days worked during the previous calendar year.


ENTITLEMENT:

1. 1 El for every 20 working day (if 6 days per week);
2. EL will be credited to permanent staff only on completion of 1 yr of service with the Comp.
3. The days served under probation will be taken into account for EL eligibility.
4. EL can be availed only on prior approval.
5. Nation/Declared/Festival/Weekly off days can be prefixed and /or suffixed to EL.
6. Intervening National/Declared/Festival/Weekly Off days will NOT BE counted as part of the leave.
7. Half day of EL cannot be taken.
8.Balance EL remaining un-utilized as on 31st December can be carried forward.
9. EL can be accumulated for a maximum of 90 days.
10. Accumulated EL over and above 90 days can be encashed at the rate of last basic pay drawn on the 31st of march of during final settlement in case of resignation /retirement/termination.
11. At the time of resignation/retirement/termination the balance EL will be en cashed at the basic pay rate as on the day of resignation/retirement.
12. any absence of more than the number of EL sanctioned will be treated as leave without pay, unless given valid reasons to the management.

Regards
Jaya A.K.



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