Dear all,
Please help me with the following queries :
We are a software company with 50+ employees. I would like to know the following informations:
1.Is the employee eligible for leave encashment when not serving the notice period.
2. We have 10 national holidays and 15 casual leaves and 5 sick leaves per year, we recently announced leave encashment for the casual leaves on yearly basis. I read in the forum that CL 's cannot be encashed, but my employer has announced leave encashment for upto 10 CL's per year. Is this policy allowed in the software companies and can anyone help on this.
Thanks in advance

From India, Madras
Hi,
As per the normal practice the leaves can be adjusted against the notice period during the full and final settlement of the employee. It can also be negotiated against the time period of notice with the agreement of the reporting managers. In case the employee has served the complete notice period then these leaves get encashed.
CL's do not generally get encashed but it also depends on the company policy, which in your case as laid down by the employer can be encashed for upto 10 CL's per year. This is a good practice as it encourages the employees to be regular and not take unnecessary leaves. Also, its an added benefit to the employees' kitty. Highly appreciated!
Hope I answered your question :)
Nisha

From India, Delhi
Dear Ruby,

your answers in BOLD

1.Is the employee eligible for leave encashment when not serving the notice period.

Yes, the employee is eligible for Leave encashment but when you are making the full and final calculation remember that you deduct the leave encashment amount with the amount due by the employee to the company.

Notice period cannot be adjusted with the leave since the leave encashment will be done in Basic+DA salary and notice period will be calculated in day salary(Here the appointment letter clause is very important) and don't encourage since notice period is where the employee has to handover his duties to other person and also the HR persons hires a new person for his/her replacement.



2. We have 10 national holidays and 15 casual leaves and 5 sick leaves per year, we recently announced leave encashment for the casual leaves on yearly basis. I read in the forum that CL 's cannot be encashed, but my employer has announced leave encashment for upto 10 CL's per year. Is this policy allowed in the software companies and can anyone help on this.

You can change/Rename CL as PL/ EL(Privileged or Earned leave).

Leave policy for your reference

India leave policy

From India, Mumbai
Hello!

If you give us a clarity on the company policy or clause of your appointment letter for the same that can fetch you all the more better response.

Answer to both your queries goes like this;

1a. When an employee is NOT serving FULL notice period :

1a. Not eligible for F'n'F and with that for sure NOT eligible for Leave Encashment.

1b. When an employee is serving PARTIAL notice period :

1b. Calculate his dues (salary + reimbursements if any + leave encashment + Bonus - TDS) and ADJUST / DEDUCT the notice pay for the period not served.

1c. When an employee serves FULL notice period :

1c. Entitled for Leave encashment as a part of F'n'F

1b & 1c are to give more clarity.

2. In such small IT companies, they are least concerned with the name of leaves. You being responsible can either change the name to PL or EL. Else continue with the same. But make sure that when your company grows and introduces PL, CL & SL all togeather in future, you have clear drafted policy with rules for each type.

Hope this helps.

Regards,

Hiral

From India, Ahmedabad
Dear Friends,
Thanks for all the suggestions and it was really useful for me to learn as well as implement .My employer asked me to collect the samples of few companies leave policies especially about the national Holidays. Can anyone help me on this, how many national holidays can be given to a software company with 60+ employees. can i get some sample companies.Thanks in advance.

From India, Madras
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