Leave Encahsment - Law

Hi,
I work for an MNC and our corporate handbook (released about 2 months back) says that there is no leave encashment for staff.
However, this is a very standard practice in India. I would like to know the statutory regulation with regard to leave encashment.
Is it mandatory as per law. If yes, which act and what section.
We are not a factory but a software development house in Chennai.
Thanks
Sivaraman

Dear K R Sivaraman,
Plz go through your State Shops & Commercial Establishment Act And examine the leave provisions. You will certainly find the answer to your query.
Regards,
R.N.Khola
Sr.Associate

Hi Seniors,
I am a HR professional, I am appearing for an interview this Monday with one of the Retail Giants in India for a position of HR Grenealist + Compliance Analyst. Please advise me on the major applicable compliance rules and laws that need to be abided by all companies as a part of HR Compliance.
Will be very thnakful to you.
Regards
Kanika Gupta

dear shivraman
BOMBAY SHOP AND ESTABLISHMENT ACT 1948 will be applicable to you.as per above said act 21 days earned leave permitted in a year and if u donot take than balance leave will be accumulated and carry forward in your account ,maximum you can accumulate upto 42 days leave in your account which will be encashed when u leave the organisation.while in service encashment of leave is not right.
any other doubt pls feel free to ask.
tks
js malik

Dear JS Malik,
Thanks for the info., but how about the CL encashment, if the company denies to encash it at the end of a financial year? Which Act / Law if supports?
Regards,
*Lav*

I have checked the Punjab shops and establishment act, (applicable in Haryana also). Leave encashment is not legally compulsory. We are not paying encashment. EL can be accumulated upto 30 days.

dear
yes ,as per punjab shop and establisment act which is applicable in Harayana and Delhi also,there is no provision of encashment.
TKS
JS MALIK

What is the basis of calculation for 21days PL applicable in Mumbai, Maharashtra. please guide. Also in which category drivers fall - skilled, semiskilled or unskilled.?
Sandeep Prasramka