Mr.Okay
Hi,
After doing a wide research i did not find any proper result on whether Leave Encashment is compulsory under Shops & Establishment Acts. of different states in India.
Now as in Retail industry where operations are spread across India we want to build a uniform Leave Encashment policy.
Need assistance whether Leave Encashment is compulsory under Shops & Establishment Acts. If there is Leave Encashment then which are the states, where it is compulsory?
Thanks

From India, Kolkata
ghorpade rajesh
10

Actually there is no legal provision for Leave Encashment, hence leave encashment is arrangement to improve the attendance and control the absenteeism. As far as concern to Factory Act or Shops & Establishment act, there is provisions for leave, their applicability, method to avails the leave and its ceiling limits.
Hope it will be meet your requirements.

From India, Bhopal
umakanthan53
6016

Dear Mr.Okay,
Almost all the States have their own Shops and Establishments Act. Their leave provisions are almost similar i.e (a) Privilege Leave/ Earned Leave/Leave with Wages (b) Sick Leave and (c) Casual Leave with the exception of their scales. Of these, type (a) alone is a cumulative leave subject to certain limitation. Remaining two are lapsable with the close of the respective calendar year itself.
If you desire for uniform leave provisions for your employees because of your organization's pan-India presence, first you bring uniformity in the no of each kind of leave by ascertaining the maximum nos provided in any State and fix them accordingly.
As far as I know, periodic encashment of any leave is not provided in any Act. But, encashment of type (a) is compulsory at the time of termination of employment only.

From India, Salem
Soumitra Sengupta
68

Please visit thread at https://www.citehr.com/575123-encash...signation.html
Regards,

From India, Pune
rreddygk
44

Leave Encashment should be done only at the time of seperation in case of any EL left out.
From India, Bangalore
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