Dear HR Guru,
Please help me out, in our company we have made a policy for leave in below manner:-
PL- 20 per annum
ML- 15 per annum
apart this I have suggest that every employee has eligible for 2 days earn leave and we should credit that as LEAVE ENCASHMENT. so we paid 24 days as leave encashment, but after sometime our new account manager said that the same is wrong, we can encash only remaining PL which have not been used by employee.....
Please suggest me whats the right.
Regards,
Rajendra Singh
HR Manager
9829087809
From India, Jaipur
Please help me out, in our company we have made a policy for leave in below manner:-
PL- 20 per annum
ML- 15 per annum
apart this I have suggest that every employee has eligible for 2 days earn leave and we should credit that as LEAVE ENCASHMENT. so we paid 24 days as leave encashment, but after sometime our new account manager said that the same is wrong, we can encash only remaining PL which have not been used by employee.....
Please suggest me whats the right.
Regards,
Rajendra Singh
HR Manager
9829087809
From India, Jaipur
Hello Rajendra,
Your question is quite confusing. If your company is already giving 20 PL per annum, I am not sure what you meant by 2 days earn leave. Did you suggest giving additional 2 days earn leave per month?
If that is the case than your account manager is right. PL or paid leave is the same as earned leave. So you do not need to distinguish between the two. As for encashment, only paid leaves can be encashed, not casual or medical leaves.
So again, whether you pay them for unused PL or earned leave, it is one and the same.
Regards,
Gaurang
From India, Ahmadabad
9Your question is quite confusing. If your company is already giving 20 PL per annum, I am not sure what you meant by 2 days earn leave. Did you suggest giving additional 2 days earn leave per month?
If that is the case than your account manager is right. PL or paid leave is the same as earned leave. So you do not need to distinguish between the two. As for encashment, only paid leaves can be encashed, not casual or medical leaves.
So again, whether you pay them for unused PL or earned leave, it is one and the same.
Regards,
Gaurang
From India, Ahmadabad
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg