7fb99eaa178b7e150cee28265
What is the criteria of calculating Privelege Leave (PL) outstanding at the time of resignation submitted by an employee who has worked for almost ten years. As per Corporate policy where my friend is working, only leave of 60 days can be accumulated /carried forward whereas he has accumulated 155 Privelege leave as on date. (He is entitled for 30 PL in a year)
Can he get refund of 155 days PL alongwith his final settlement after resigning from job..........
Rajesh Gupta

From India
maliniluky
46

Actually in our company an employee can carry forward to an max of 200 PL and upon accumilating 200 PL HR will automatically refund the amount. Incase the employee resigned in between and had accumilated 155 PL, then the refund for 155 days will surely reflect in their full n final settlement
From India, Madras
balakani2006@gmail.com
Dear
You said , the corporate policy is very clear that you can't accumlate more than 60 days . It means more than 60 days get lapsed . So, there is no question about refund of 155 days. But you may eligible for 60 days only.

From India, Madras
7fb99eaa178b7e150cee28265
Balakani: You mean Govt rules will not be applicable on leave accumulated by an employee during his service period of 10 years and leaves will be calculated as per company policy and he will get 60 days credit against accumulated leave of 155 days.
For Example - in case of Gratuity calculation , (Gratuity Act) is applicable while calculative the amount. Is there are act on leave accumulation and refund after employee resign from the job. Pls advise -

From India
suprita.raj
Dear 7fb********
As per the govt. the leave calculation is done on the calendar year. So if incase any employee having more than 60 PL can get it encashed in the month of Jan. But if the company policy states that PL upto 60 Days can only be accumalated & the rest is lapsed that means you need to finish of the excess PL's as it would be lapsed.
I dont think the would be giving any encashment for 155 PL's with the F&F.
Would request to correct me if I am wrong.
Regards
Suprita Raj

From India, Mumbai
Awvik
10

Dear,
The first and foremost thing that comes to mind is why would a person accumulate 155 days leave when the company policy clearly states that no more then 60 days leave can be accumulated. Is the person in spite of working for 10 years in an organization is still unaware of the leave policy in practice or is he too foolish to understand the leave policy framed by the company!!!
One more thing, the question of government leave rules doesn't apply here as every company is guided by it's own leave rules. The law is very clear as far as accumulation of PL is concerned. So in this case the person concerned will not get more then 60 days PL encashment as on the date of leaving. The rest stands lapsed.
Regards

From India, New Delhi
sreedq
3

Dear
How his leave balances can be 155 if the policy is stating clearly that "only leaves of 60 days can be accumulated /carried forward".
u r saying that 30PL's PA will be accumulated.
for example at the end of the first yr PL balance say 30 (if he/she not availed any leaves in that year)
2nd yr end PL balance goes to 60 (1st 30 + 2nd yr 30)
3rd yr end PL balance goes only to 60 and 30PL which accmulated will get lapse if not used. In that case how the current balance can be 155???
it shows some information / clarification is missing.

From India, Madras
ash.pgdm
2

Assuming that your concern comes under the purview of Shops and Establishments Act, you need to follow the leave rulers of that particular state.
After going through the leave rules , you can decide as per the compliance. If by paying for 60 days, you are meeting the compliance, why should you pay more when that is mentioned in your internal policy also...
But, if the rules suggest that all the balance (155 here) PLs can be encashed at the time of leaving the organization, you need to pay for 155 days.
So, please refer to the S & E act / Factories Act of your state in particular, to get the answer.

From India, Hyderabad
balakani2006@gmail.com
Dear 7fb..
If your company Rules allow that an employee can enchase the excess leave at the beging of year as per SREE example.
Dear Mr.Ash,pgdm
As per my understanding there is no clear rule for accumlation of PL/EL in industiral Law.
If is there , kindly correct it.

From India, Madras
C.GirishMenon
Dear Rajesh,

Simple plain answer to your querry is that your friend can avail leave encashment to the extent permitted by the company Corp HR policy only .However ,while going through your statement /question ,I have observed your question has not given light to the following key areas :

1) Is your friend working in a factory coming under factories act ? or a commecial establishment covered under the S&CE act of the respective state ?

2) In case ,he/she is working in a commercial establishment and is working in a branch situated in a state where there are more favourable or unfavourable terms inbuilt in the S&CE Act of the stae concerned and assuming that there are no certifed standing orders in the company approved by the appropriate govt ,approach to the problem in hand may vary .

3) Taking the querry to legal perfection ,it also requires light on dual wording you have used - " Accumulated/Carried forward " ? for ex : one can accumulate upto sixty from one point of view and in another ,one may take it as carry forward is permitted upto sixty days only .We ,HR professionals cannot use words like this assuming lay man's usage .Given to me ,I would interpret it as after crossing 3 or 4 years ,individual shall be permitted to carry forward sixty days only and not 90 or 120 as is the total entitlement

4) Finally ,why has he accumulated so many days ? is it because of exigencies of service ,and the management did not approve the leave beyond certain days ?

From India, Thiruvananthapuram
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