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Currently we do not have leave encashment policy in place but we are planning to introduce the same. We have only Pl, CL & SL leaves
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What is your industry Shop & Establishment or Factory?
we are Shop & Establishment company
In my knowledge, there is no provision of leave encashment under Shop and Establishment Act. The provision for encashment of leave can be only through contract of employment.
In short, its upto organization whether to encash leave or not.
Further, most organization (which have provision of leave encashment) consider P.L. for leave encashment and consider BASIC SALARY as base.
Basic Salary/26 x no of P.L.
It is hard to find an exclusive write-up for leave encashment alone and typically rules for encashment would be part of leave policy. Here is a copy of Earned Leave policy with encashment reference. You may use this with required edits.
Next time when you are looking at comprehensive policies for your organization; leave, attendance, hiring, communication, discipline etc. recommend to visit

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File Type: pdf Leave Encashment Policy.pdf (85.7 KB, 613 views)

Hello madam,
i had worked in Retail Shop as a Department manager almost 8 years i left the job in month of Dec 2018
now they are not giving me PL encasement ----
they are seeing that in Maharashtra there no pl encasement policy --pls tell me what to do in this case i have around 140 day PL at the time of exit
pls help me
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