Is a Two-Year Service Requirement for Earned Leave Encashment Legal? Seeking HR Insights

Hi, I have just joined as an HR executive in this company. I have a doubt about unused EL encashment. Our employee manual mentions, "In order to be paid against unused EL, an employee must put in a minimum of two years of service with the company." Is this as per the law?

Earned leave is accumulated as per the policy of the company or encashed at the time of retirement/death or in the case of leaving the company because it is earned by the employee on the basis of actual work days put by the concerned employee. The employer can't deny the encashment of the same.

As per the law, an employee who works for at least 240 days in the preceding year is eligible for Earned Leave. This means that he earns leave by working. If he does not avail such leave in the succeeding year, he can encash it at the end of the year. The year for leave calculation purposes is the calendar year. However, variations not inferior to general rules will be permitted provided the Standing Orders of the company permit. Therefore, if the standing orders (which are certified after obtaining employee approval) provide for encashment of Earned Leave after two years of service only, then such a provision will be valid.

Regards, Madhu.T.K

Dear All,

Please help me out with the encashment format so that the employee can simply fill out the form without wasting time writing a letter. Can someone assist me with this? The description in the form should include details for EL, CL, or any other format for encashment.

Thank you.