Asso.prof.(commerce & Management)
Nagarkar Vinayak L
Hr And Employee Relations Consultant
Hr Consultant

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Are Sick leave and Casual leave en cashed?
no only EL is subjected to en-cashed , subject to acceptance by the employer
Yes, only EL/PL can be encashed. SL/ML as you know can only be availed based on medical advice/certificate, and CL is valid only for the respective year which cannot be accumulated. A very few establishments permit limited days of unutilised CL to be converted to EL/PL where due to official exigencies the concerned coultn't avail them, or can be carried over to next year for a few months failing which those days elapses.
If the leave policy doesn't permit any encashment, but only could be availed, there is no solution. But on retirement, EL/PL in the credit of leave a/c could be encashed in full subject to maximum permissible.

Dear colleague,
No law requires you to encash SL/CL.
As regards PL/EL, only unavailed quantum is encashable on termination of the employment. While in service, it depends on company policy to encash it or not.
Vinayak Nagarkar
HR- Consultant

Thanks to all of you. I just confirmed this thing and want to know the reason. Why these leaves are not encashed?
Dear colleague,
Reason why is simple. Law does not compel you. But there is no bar for a company to adopt a policy to encash CL/SL by framing proper rules. But such is not rampant practice in industries .
Vinayak Nagarkar
HR- Consultant

Thank you Vinayak sir.
I joined this company in october and they gave these leaves encashed to all staff and workers now they said we will not encashed these leaves at the end of the year. How can i manage them? Please guide me and give me a solution for that.

What is the formula of encashment of PL/EL at the end of every year? My company encashed this leave every year.
Hi Pradeep,
Pl.read the post of Vinayak Nagarkar,that is the position. I may add, encashment of EL/PL is not a statutory benefit to employees under any Act or Law/rules framed by govts. However this is being extended ONLY by some organisations but not followed by all. Even wherever this is followed the procedure is not one and the same or common for all just because there is no governing statutory provisions. For your info, to my knowledge the following methods are in vogue-
1. Allow 50% of balance days available at credit of EL/PL once in a year;
2. Permit encashment of any No.of days at their will, but less than 50% of leave once in a year;
3. Approve encashment limiting to max.50% of leave as and when LTA/LTC is availed by the employee concerned.
4. Some industries issue a common circular to all eligible employees to apply for encashment as and when convenient to the management (but limiting to 50%), not more than once in a year;
5. Organisations where there is lesser no of employees, like 20, 30 etc. consider encashment at random, at their discretion or limiting to the funds earmarked/budgeted on first come- first served basis using discretionary powers delegated to authorised authorities.
However, encashment as part of F&F at the time of leaving either on resignation or retirement, in full but subject to maximum prescribed by the firms concerned as per their leave rules is a common practice.

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