Leave Encashment

Anshul Kumar · 30-10-2009, 07:22 AM

Dear Friends,

In our organisation the practice has been to calculate the leave encashments and Notice Period Payment on Gross Salary. We would like to revise the policy where both of them being are calculated on Basic+DA+HRA.

Can it be done?
Will it involve any legal hassels?
We would like to do it both for the management cadre employees and employees under the Industrial Disputes Act..

Kindly let me know urgently your views..

Regards

Anshul Kumar

prashant1314 · 30-10-2009, 12:59 PM

According to my view

In case of notice perid to "Payable to Workers - EL/PL" what is your policy.

As whatever you are giving to them only that you can recover from the employees.

" Give & take pocily "

neha22111986 · 30-10-2009, 01:13 PM

Yes the same can be done as wages are normally considered to be basic+da. so u can go ahead with it. for leave encashment u can even do it on only basic salary... there are companies which have different rules for both notice period and leave period... for notice they take gross n for leave encashment they take only basic... this is org policy so can be shaped in any way as it doesnt violate any law.

sumitk.saxena · 01-11-2009, 05:29 PM

The component for the payment of Leave encashment will be Basic+DA and notice perid payment wil be done on Gross Salary.
sumit Kumar Saxena,
9899669071, 0120-4131277

CHALLA SRIDHAR · 02-11-2009, 09:46 AM

Can anyone clarify the legal status of the above calculation. If yes please give the GO/Circular of basis/formula of calculation.

sridhar