Leave Encashment [Thread 140542]

Dear All,
I am working with a manufacturing cum engineering firm in HR domain...I like to know that is it mandatory to give leave encashment in full & final settlement..
Please suggest me ..its urgent

We are into retail. We don't give any leave encashment. I have read Shops and Establishmnet Act for Haryana and Delhi. It didn't say it's mandatory to encash leave. Accordingly, we gave 6 CL, 9 EL and 15 priviledge leave. These 15 days priviledge leave can be accumulated till 30 days. When a person resigns these leave lapse. Please let me know is there is correct as per law.

Hi,
what if a company is settling the leaves against the notice period insted of paying for the same.
Swati Jain

Swati, in FnF, Notice period Deduction is on Gross while PL/AL/EL payment is on Basic as per Factory Act, secton79.

Hi,
If you are in manufacturing and this is compulsary, becoz this Leave is earned by Employee either Factory Act-1948 or anyother act applicable to you.
Regards
Manoj

Dear Manoj,
In f& F settlement sL & Cl and Pl should consider for settlement calculation. and if while deducting notice pay we are deducting on gross salary bu t while leave encashment on basic , is there any law behind it, if yes which act, section.
regards,
ravi

Dear Ravi,
As per standard made under statute only PL encashed other leaves will lapse. but that is depend on your leave policy.
You deduct as compare to your notice remaining should be paid to the concern employee. as per
This Leave rules as per act applicable to you i.e. Factory Act-1948 and The Industrial Employment (Standing Orders) Act-1946.
Pls. check.
Regards
Manoj