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If an old Employee has an opening balance of 15 PL on 1 Jan 2023. and he leaves on 15 May 2023. Is the company liable to pay the entire balance of 15 leaves or leaves on a pro-rata basis in full & Final settlement?

Seasoned Ir Professional
Ceo-usd Hr Solutions


If his opening balance of PL was 15 and he has not availed any PL during Jan May period, certainly, he should be paid 15 days salary as leave encashment. In addition to this, he is also entitled to leave and encashment proportionately for the period January to May, subject to service conditions. Normally, if we apply the principles of Factories Act, he would be eligible for leave for the current year if he has worked for 100 days in five months period and his leave for the current period shall be based on his physical days' present at the rate of one day for 20 days.
From India, Kannur

It appears to me from the original post that there is no accumulation of leave for 2022. Probably as on 01.01.2023 as per the policy of the organization 15 days leave has been shown as opening balance for the year 2023. If the employee has taken any leave during 1.1.2023 to 15.05 2023, then after adjusting that leave from the actual eligibility up to 15.05.2023 (pro rata basis) - if any leave in the credit of the employee should be paid along with F & F Settlement.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531

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From India, New Delhi
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