Would like your esteemed opinion in the case of organisations which are registered societies, also exempted under 80G of income tax act - we have as per our rules - epf, leave and leave accumulation but not leave encashment. we are also registered under shops and establishments. Is leave encashment at the time of resignation and retirement a right of employees as per Indian labour law?
Please advise.
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Whatever EL/PL in the credit of the leave account on the date of termination of his/her employment should be permitted to be encashed. It forms part of the F&F settlement.
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