No Leave encashment - privilege leave can be accumulated upto 72 and further to that they will get lapsed - CiteHR
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Hi ,I am working with an organisation which comes under Shops & Establishments law , and we have 24 privilege leaves per year, I joined this organisation on Nov 2016 and now in next month I will complete my 3 years, this company is 5 days working organisation and we have 10 CL/SL and 10 festive holidays so it happens that I go on leave very rare nor the employer is very happy to issue leaves.
if the CL/SL are not utilised they lapse and I am ok with it, but my concern is with privilege leave here they can be accumulated upto 72 and further to that they will get lapsed, employer is not ready to give leaves nor en-cash the leaves.
is this as per law.
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As far as I know, there is no provision any establishment-specific labor law permitting an employee to encash EL/PL while in service. However, salary/wages equivalent to the accumulated EL/PL subject to the statutory ceiling should be paid by the employer on termination of employment.
Blanket refusal to sanction EL/PL is not a good HR practice when the leave is applied for well in advance. The concerned employee can make a complaint to the Inspector under the Act and in case of any deduction of salary for going on EL/PL refused he can file a claim under Sec.15 of the Payment of Wages Act,1936, if the Act is applicable.
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