vermamukesh70
One of my freind is working for 7 year in a company which has head office in Tamilnadu State, which state act will apply on his company. Whether he has a right on leave enchament as he has more than 150 PL balance when he tried to ask clearification from company hr company says they dont have a policy for leave encashment is there any legal boundation on the employer to do so or simply they can refuse.
Searched your web site a lot but could not fetch the desired reply.
kindly let me know legal boundation of employer on on Pl Encashment.


shaukat hussain
6

Dear friend
It depends on companies policy, whether they encash PL during the service or not because there is no provision under Factories act 1948 to encash PL during the service period but to accumulate unavailed leave maximum up to 30 days in case of adult and forty in the case of a child. But at the time of leaving the job on superannuation or dies while in servie/discharged or dismissed from service shall be entitled to wages in lieu of quantum of leave to which he was entitled .While preparing his Full and final statement, all balance PL should be encashed.
Regards
Shaukat Hussain

From India, Jaipur
Dilipbhandari
8

Dear Friend PL encashment is mendatory at the time of retirement or leaving the service. Employer has to give it. Dilip
From India, Surat
vermamukesh70
Thanks guys for your reply but I want to clearify whether there is any statutory boundation on employer to encash the balance PL at the time of exiting from company and further more please help what part of salary we take into consideration while calaculating pl encashment amount as per factory act this is basic+da/26*no of pl. Is it the maximum possible amount or any part of law which support full salary/30* no of pl.

k_shenbagarajan
188

It will be on Basic + DA / 26 or 30. (depends how he has been paid monthly for 26 or 30/31 days)
From India, Mumbai
malikjs
167

Dear it has to be dividedby 26 not 30 as mentioned by Mr shenbagrajan because one day salary you will get by dividing 26.
From India, Delhi
k_shenbagarajan
188

Dear Malik,
I accept your statement.
The Leave encashment is calculated differently in different organisations:
for Central Govt. employeees the formula is :
Basic Pay + DA / 30 x No of days unavailed earned leave
in case of industrial employees the formula is :
Basic Pay + DA /26 x No of leave to be encashed.(Applicable only if he is paid for 26 days)
Most of the organisation policy, the employee leave wage has been calculated as Basic Pay + DA / 30 x No of days unavailed earned leave.(Employees are paid for 30 days and not 26 day)

From India, Mumbai
sanjay.singhania282@gmail.com
1

kyia leave encashment par pf katha ha if cut pf on leave encashment rather why if dont cut pf on leave encashment rather why please give me solution my senior thanlking you best regards sanju singh
From India, Hyderabad
jayganesh.r@shriramcity.in
Dear Seniors
I am newly joined one finance service oriented concern. i am from manufacturing . i don't know shops & Establishment Act .in this concern situated in all states. i need statewise Shops & establishment Act ,returns, register, abstract and any other renewals due date , registeration formalities etc., and moreover i want know which acts applicable under shops & establishment act . Please help me . My e.mail id is
thanks & regards,
S.Muthu

From India, Madras
Saunee
12

if payment of salary is calculated dividing by 26 then is should be encashed by dividing 26 only. it depends on how you pay when someone is regular employee of your establishment.
From India, New Delhi
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