Pl encashment rules - leaves encashment are based on Basics or Gross? - CiteHR
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Dear All,
As per Rules , Payment should be done Gross Salary.

One more things can we lapse the PL in case it crossed the carry forward limit as stipulated in company policy.
Carry Forward limit is 30 as per Factory Act, After 30 all leave (30+) should be paid.
Is it mandatory to allow leave encashment ? Is there any law which binds to pay leave encashment if leave is not granted ? Can anyone explain ?
In Karnataka shops & Establishments - during F & F (Full n final settlement), is it compulsory to encash 30 days of Annual Leave or it can be at employer discretion say 15 days of encashments during exits.
Please suggest..!

Dear Asharao,
As per rules, you have to make payment of all leaves earned by employees. Paid leave will be calculated as 1 for 20 working days. After calculating leaves you have to make payment of all those leave.

As what i had learnt from my Experience of an year in my Company we encash the leaves with Gross Salary only. Just because our basic salary is only 60 % from gross we did this method. But Actually the cashment is purely an organisation own thing. It depending on company policy.
Please clarify what is maximum days of Earn leave that can be encased at time of ful and final.
If I have 500 earn leave balance, can total 800 days be paid at fnf?

Could not understand how you can claim / pay for 800 days when balance is 500 days. Accumulation of leave shall be as per your leave policy or else as per Factories Act it is 30 days.
That is the reason why many companies are having leave policy allowing more accumulation to encourage regularity of employees.

Every organization has different leave policy. Credited 1 leave after every 21 working is mandatory as per the statutory compliance.
Some companies i have seen that they 21 or 14 EL/PL. Encashing them on basic or gross is the company prerogative.
Accumulating EL and getting them en cashed again depends on Company policy. Some company leave policy states that 45 /47 only be encashed during the FNF.


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