hi Gauri
The unavailed PL has to be encashed at the time the employee is leaving the service or if the employee dies during service. the encashment of PL every year is not compulsory. the employer may draft a scheme For the purpose of ensuring the continuity of work and for securing the attendance of the workers and the management may encash the unavailed earned leave at the end of every calendar year.
Following shall be the salary components while calculating the encashment of leaves:-
Sec. 80. Wages during leave period.- (1) For the leave allowed to him under section 78 or section 79, as the case may be, a worker shall be entitled to wages] at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the month immediately proceeding his leave, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles:
Provided that in the case of a worker who has not worked on any day during the calendar month immediately preceding his leave, he shall be paid at a rate equal to the daily average of his total full time earnings for the days on which he actually worked during the last calendar month proceeding his leave, in which he actually worked, exclusive of any overtime and bonus but inclusive of dearness allowance and the cash equivalent of the advantage accruing through the concessional sale to the workers of foodgrains and other articles.
(2) The cash equivalent of the advantage accruing through the concessional sale to the worker of foodgrains and other articles shall be computed as often as may be prescribed on the basis of the maximum quantity of foodgrains and other articles admissible to a standard family.
Explanation 1.- `Standard family' means a family consisting of worker, his or her spouse and two children below the age of fourteen years requiring in all three adult consumption units.
Explanation 2.-`Adult consumption unit' means the consumption unit of a male above the age of fourteen years and the consumption unit of a female above the age of fourteen years and that of a child below the age of fourteen years shall be calculated at the rates of 0.8 and 0.6 respectively of one adult, consumption unit.
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