Please clarify about leave encashment rule after resignation or termination from Limited company. Leave Balance 180 days in 9 years job.
From India, Bhubaneswar
From India, Bhubaneswar
Hi Buddy,
An employee can en-cash his/her Outstanding Earned Leave (EL) at the time of resignation or termination, But Factories act specify that an employee cannot accumulate more than 30 days of EL.
However if company policy allows an employee to accumulate more than what said in act than you may be eligible for en-cashing the outstanding leave in your account at the time of leaving the company.
With Regards
Mr.Thumbs Up
From India, Chennai
104An employee can en-cash his/her Outstanding Earned Leave (EL) at the time of resignation or termination, But Factories act specify that an employee cannot accumulate more than 30 days of EL.
However if company policy allows an employee to accumulate more than what said in act than you may be eligible for en-cashing the outstanding leave in your account at the time of leaving the company.
With Regards
Mr.Thumbs Up
From India, Chennai
Dear,
Leave encashment is provided to employees only if there are accumulated PL/EL in their leave account.
Permissible leave encashment shall be governed by the policy of your company. Most of the companies don't allow for accumulation of leaves for more than 3 years. If it exceeds 3 years, either the excess leaves may get lapsed automatically or may be encashed on your request. However it varies from company to company.
Encashment is calculated on the average salary of last 10 months. Here salary means Basic+DA+any commission as % of turnover.
Pls note leave encashment will be settled with the full and final amount and is taxable in case of resignation and non taxable in case of retirement/superannuation.
From India, Delhi
Leave encashment is provided to employees only if there are accumulated PL/EL in their leave account.
Permissible leave encashment shall be governed by the policy of your company. Most of the companies don't allow for accumulation of leaves for more than 3 years. If it exceeds 3 years, either the excess leaves may get lapsed automatically or may be encashed on your request. However it varies from company to company.
Encashment is calculated on the average salary of last 10 months. Here salary means Basic+DA+any commission as % of turnover.
Pls note leave encashment will be settled with the full and final amount and is taxable in case of resignation and non taxable in case of retirement/superannuation.
From India, Delhi
My company (simplex infrastructures limited) refuse to encash credited privilege leave after resignation as it is a construction company.
From United Kingdom, undefined
From United Kingdom, undefined
Dear Chhetry,
Pl.go thru' the following links for some related info.
https://www.citehr.com/107968-leave-...r-act-pg3.html.
I'm not sure though yours is a construction co. what act applies to you. Are you regd. under the Factories Act or Contract Labour (CA) Act or what. If you are working at a site pl. find out what act is applicable for such works in Odisha. You have to give relevant info. about your Co. so that we will be able to guide you on this.
From India, Bangalore
Pl.go thru' the following links for some related info.
https://www.citehr.com/107968-leave-...r-act-pg3.html.
I'm not sure though yours is a construction co. what act applies to you. Are you regd. under the Factories Act or Contract Labour (CA) Act or what. If you are working at a site pl. find out what act is applicable for such works in Odisha. You have to give relevant info. about your Co. so that we will be able to guide you on this.
From India, Bangalore
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