Labour Law & Hr Consultant
+1 Other

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Hi, Need your help to sort out the confusion related to Leave Encashment.
Guide me to know the provision for Leave Encashment to Employee if he resigned during his extended probation period.
My opinion is, "During probation employee cannot avail PL however his leave will be accumulate (as per company policy or as per Act whichever is applicable) and will be Encash during FnF if he resigned during probation or extended probation."
kindly suggest.

From India, Mumbai
Dear Amol,

Leave, as a statutory employment benefit, is of two kinds. One is lapsable leave and the other is accumulated leave. Lapsable leave, if not availed within the calendar year, gets lapsed with the end of the year and the best example is Casual Leave. On the contrary, accumulated leave is the leave that can be carried forward to the following year and accumulated subject to the ceiling, if not availed and the best example is the Earned Leave. Only the accumulated leave at the credit of the employee is qualified for encashment at the time of termination of his employment.

The nature of accrual of EL is such that it is based on the no of days actually worked by the employee in a particular year to be availed of or to be accumulated only in the succeeding year. In so far as a probationer is concerned, the accumulation of EL depends on the total period spent on probation including extension, if any thereof. Therefore, if an employee has completed one year of service even as a probationer and resigns as such, he is legally entitled to leave encashment as a terminal benefit.

From India, Salem
Hello, Please, advise if any employee resign during probation period of 6 months, is he eligible for the annual leave encashment as per law.
From India, Kolkata
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