Anonymous
Hello please help me out regarding leave policy in IT company in Uttar Pradesh, just want to check with you if employee left company within 1 year is he entitled for Privilege Leave encashment
From India, Delhi
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Umakanthan53
Labour Law & Hr Consultant
Samuel R
Digital Marketing
+1 Other

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umakanthan53
5887

The accrual of privilege leave or earned leave as the case be as per the leave provisions of any State Shops and Establishments Act would commence only on the completion of 12 months service by the employee in the same establishment. Therefore, an employee leaving service within a year is not eligible to PL/EL encashment.
From India, Salem
kamesh333
186

Dear Mr.Umakanth, Is he / she not eligible for leaves proportionately ?? just for clarification. Thanks Kameswarao
From India, Hyderabad
umakanthan53
5887

Dear Kamesh,
EL/PL is entirely different from other kinds of leave since its accrual and availment become effective only in the succeeding year or years based on the employee's attendance or completion of continuous service of 12 months in the current year. Besides, the unavailed portion of the EL/PL pertaining to a particular year can be carried forward to next years subject to the ceiling prescribed and can be encashed at the time of termination of service. Since other kinds of leave like sick leave, casual leave are lapsible in the year to which they are pertaining, eligibility for claim in respect of temporary employees/probationers can be determined in proportion to their length of service rendered.

From India, Salem
Samuel R
23

Hi ,
Encashment of priviledge leave totally depends on companies policy. If an employee leaves after a year and the company's rule states 'encashment of priviledge leave then the particular employee's leave should be encashed.
You can check how a tool like greytHR https://www.greythr.com/leave-management-software/ helps to automate all the process involved in leave accounting.

From India, Bengaluru

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