I have resigned from a Pvt. Ltd. Co. I worked for 13 years and my earned leave accumulated are 356 days. Can the company encash all my 356 days or what is the limit for accumulation.
From India, Mumbai
Seasoned Ir Professional
Sr. Hr Manager
Pocket HRMS
Human Resource Solutions
+1 Other


This depends upon your company's HR policy on Leave/Leave encashment. As we are not aware of
about your company policy, terms of your offer of appointment, it is difficult to give a concrete answer.

From India, Aizawl

How the earned leave is so accumulated? Normally, as Mr Nair has said, the leave policy only says how much of leave can be carried forward or accumulated. If you take the leave as per the law applicable, say, if you are a factory kind of establishment, you can accumulate only 24 days leave. The Shops and Commercial Establishments Act in some states, (Maharashtra for example) provides for accumulation upto 45 days. At the same time, if in each time, your leave requests were rejected that number of leave can be added to the above limits, ie, 24 or 45. Allowing to accumulate 356 days' leave to your credit for a service of 13 days is a good indication of employee benefits and I don't think that such an establishment will hesitate to encash the entire leave.
From India, Kannur
According to my appointment letter the following leaves are mentioned
Casual leave 12 per year which I have taken every year. As they get lapsed every year
Sick leave 15 per year even these were taken by me. As they get lapsed every year.
Earned leave 30 per year (30 13 = 390) I have utilized 34 during this 13 years of my service. And the balance is 356 days. According to government norms. We can accumulate 300 days for encashment till retirement or Resignation. Can you please check and update me. The company is LIMITED and not Pvt. Ltd.

From India, Mumbai

I understand that your establishment (whether it is private limited or limited) is not a government organisation, or a public sector company but it is a private sector organisation. Unless otherwise stated very specifically in the company's certified Standing Orders or leave rules, the earned leave may not get accumulated to such a huge number. The leave rules of the companies differ from company to company but subject to certain things as I have mentioned in the earlier post. Therefore, you have to check whether there exists any provision for accumulation of earned leave without any limits. If it is available, certainly, there should be a provisio that the accumulated leave shall be encashed. Please check.
From India, Kannur

Dear Neelam,
As a practice earned leaves accumulated in ones account get paid at the time of F& F settlement.
I don't feel there should be any problem for making payments by your employer, if there remain 356 accumulated leave days. The non-payment situation arises, where a company maintains maximum limit for leave accumulation policy. In such cases the excess of maximum limit gets lapsed. There is nothing specific limit for accumulation, and the limit differ from company to company. The maximum limit always remains between 300 to 350days. Legally all the leaves accumulated are to be paid in absence of specific limit or policy. The Basic(Basic+DA) rate is paid excluding other perks.

From India, Mumbai

When you communicate your resignation, you can also request clarification on the earned leave encashment process and limits. This will help you understand how much leave can be encashed and ensure a smooth transition during your resignation process.

Pocket HRMS

The maximum number of earned leaves that can be accumulated in a private company in India is 30 days. So, your company can only encash 30 days of your leave and the remaining days will lapse.

The limit of 30 days is applicable to all employees, regardless of their length of service. However, some companies may have their own policies that allow for a higher accumulation limit. If you are unsure of your company's policy, you should check with your HR department.

Here are some of the factors that may affect the leave accumulation limit in a private company in India:

The company's leave policy
The employee's length of service
The employee's designation
The employee's performance

If you have any questions about your leave accumulation limit, you should speak to your HR department. They will be able to provide you with more specific information about your company's policy.

From India, Dombivali
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