Please advise which of the leaves are encashed at the time of employee separation. I know PL is encashed, but is there any limit? Is SL encashed as well?
Normally, only PL/EL is being encashed when an employee leaves. The limitation of days for PL/EL encashment and encashment of SL depends on the policy of the organization, which varies from organization to organization.
The casual leave shall not be combined with earned leave (EL or PL). The unavailed earned leave can be carried forward to the next year, up to a maximum of two years (24 days). An employee is eligible for 12 days of earned leave in a year. Earned leave can be availed only upon completion of one year of service by the employee in the organization. The earned leave taken in the first year of service will be treated as loss of pay and will be deducted from the payroll.
Earned leave should be planned at the beginning of the calendar year and cannot be taken more than 3 times in a year. At the time of separation, unavailed earned leave can be encashed as part of the final settlement. This may differ from one organization to another.
PL/Earned Leave is encashable at the time of separation. Generally, up to 30 leaves per annum can be accumulated, with the maximum encashment leave quota varying from organization to organization. However, the upper limit is typically 300 leaves. Additionally, SL is encashable at the time of separation. CL can only be clubbed with unavailed SL.
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