Partner - Risk Management
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Dear All,
I am working in BPO. We terminate employees who are not performing. My Management is not giving PL encashment to those employees who are getting terminated in probation because of non performance or under performance.
Is it legal? can they refuse to give PL encashment if they terminate probationer for not performaing or not meeting the expectations?
Kindly guide me on this.

From India, Mumbai
Dear Anonymous
There Can not be two Laws ie one for performer and other one for non performer.If you are terminating
someone services than leave encasement should be paid not later than second working day after

From India, Delhi
There are many aspects to any action and therefore you must take a wholistic view.

Check The shop and establishment act of the state where your offices are located. They have crossed regarding leave and encashment of the same on termination. In most cases, the number of days of leave allowed depends on the number of days they have work. in most states, those working for less than 90 days are not eligible for any paid leave. In such cases, there is no question of encashment during termination.

If your probation period as exceeded the above video, then only be employee is eligible for you.

You also need to see the standing orders, and the provision of the shop and establishment act, and referred to Clauses that define when is to be credited to the account of the employee. In most cases, this credit only comes at the end of the year of work. If that is the case, there is no leave engagement to be paid since they have not worked for a year.

However, in all cases where there is a credit of leave or where they are eligible to have credit of leave, the encashment is generally provided for in the act.

Some states require encashment only for those employees who were denied leave in the earlier period

From India, Mumbai
Hello Anonymous,
There should not different laws for performer and non-performer in any organization. Here PL is also known as earned leave by Employee. So according to available Standing Order of the company, you can provide the PL encasement to the each and every employee irrespective of s/he is performer or non-performer. According to law any employee who have served at least 180 days are eligible for earn the PL.

From India, undefined
Thanks to all seniors for guidance. Actually in my previous companies we used to give PL encashment in FnF but here Sales Managers who are seniors they misguide our Directors by saying that if anybody is not performing and not earning for us then why to pay that person the salary as well as PLs which is actually wrong practice. But as they are not aware about Labor Laws I have taken initiative to change their mindset. Your valuable comments will definitely help me in this.
Thanks a lot for your replies.

From India, Mumbai
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