Partner - Risk Management
Adoni Suguresh
Sr.executive (per & Adm)
Hr Profestional
Hr Executive
+1 Other

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Hi All,
We are having an employee relieved from the company in August 2014. His remaining PL's since April 2014 are 2. and previous year balanced PL's are 12. Can anyone tell me is there any specific rule regarding previous year PL calculation? Ans how shall I calculate his PL's to encash to him? Also help me to know The act regarding Employee's leave encashment.

From India, Nasik
Simple....there is no statutory law for Leave Encashment..... you can make encash by 100% of Gross salary or 100% of basic as per company polices..
From India, Mumbai
Yes I did the same but my seniors have asked me to check if there is any rule regarding PL calculation. Hence, i put query here.
From India, Nasik
Dear Friend ,
If you want to ask how to calculate EL/PL answer could be as following-
1. For Every 20 Days of working day 1 EL will generate which can be accumulate up to 30 but as be amendment made in 2002 in it can be accumulate up to 45 .
2. Only employee who serve 240(include holiday and Week off) or more in a factory during calendar will be eligible for EL

From India, Hyderabad
Please state your Leave Policy to give you an appropriate view, normally PL is carried forward to the coming years to extent upto as decided by the management in their policy over and above the limit it is lapsed. So in this case if any PL balance is available in the account of any employee it has to be en cashed at the time of relieving the employee.
From India, Ahmadabad
First you need to clarify whether you are under factory act or shop and establishment act (and which state it comes under) The answer will depend on it
From India, Mumbai
Hi Sawata Banergee. We come under Bombay Shop and Establishment act.
From India, Nasik
Do you have a Leave Policy in your organisation. If yes, what does it say about
1.Accumulation of PL
2. Encashment of unearned PL
and you need to be guided by that. If there is no leave policy, it is fair to allow the staff to encash the un-availed leave. Next immediate step,design a clear Leave Policy.

From India, Chennai
Normally the PL or El are being calculated on calendar year basis under all enactments and not on financial year basis. To get the eligibility of leave one should to complete the 240 working days from Jan to Dec. If a employee joined in the middle of the calendar year, he should complete two third of attendance. The employee will be eligible for 1 day PL ON EVERY 20 DAYS.
If your employee is leaving to see his leave records and pay the balance PL along with the this year leave also. Calculate 1 day for every 20 working days. from January to till his day of relieving. The leave salary should be paid along with his final settlement as per salary structure.
Adoni Suguresh
Sr.Executive (Pers, Admin & Ind.Rels) Rtd
Labour Laws Consultant

From India, Bidar
Whatever you are stating is for factory act The post was by someone covered by Bombay shop and establishment act
From India, Mumbai

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