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sasikumar-ramakrishnan
1

Kindly clarify the following query. Whether a condition in the leave rules, that the employee would be eligible for leave encashment only on he/she attaining superannuation is right in the eyes of law.
From India, Tiruppur
Prashant B Ingawale
467

Yes but all those leave refused should be en cashed at the closing to Leave Year if employee want to encash.
From India, Pune
umakanthan53
6016

Dear Sasikumar,
" Leave ", irrespective of its nature and duration, is an employment benefit conferred upon the employees as a means of authorized absence from work. The primary objective behind such an employment concession is to enable the employees rejuvenate themselves occasionally from the monotony of work apart from permitting them to discharge certain personal and social obligations which are contingent in everyone's social life. Therefore, basically the facility of leave encashment is anathema to the very concept of leave in the realm of employment. That's why every establishment-specific labor law puts off the facility of leave encashment to the termination of employment only. Hence it is reasonable and legal as well.
Coming to the aspects of sanction of leave and its refusal, none can be idealised nor any straight-jacket formula can be given. No employer should refuse sanction of any leave mechanically is equally true as no employee can claim any leave as a matter of right. However, if any organization's leave policy permits annual encashment of any non-lapsable leave like EL/PL, it is not illegal.

From India, Salem
KK!HR
1530

Leave encashment is allowed where the employee dies while in service. In certain organisations allow EL encashment or adjustment of EL against notice period in case of resignation. As per sub-section 11 of Section 79 of Factories Act 1948, if the employer terminates service of a workman, then the salary is payable within second next working day. In case the worker quits the employment, leave salary has to be paid on or before next pay day.
From India, Mumbai
sasikumar-ramakrishnan
1

Dear Members, Thank you for the valuable inputs. When there is no Standing Orders in place, would the policies framed by the company would survive. Thanks & regards, Sincerely, Sasikumar.R
From India, Tiruppur
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