Currently the earn leave encashment in our organisation is being on the last drawn basic. There has not been any ceiling on the accumulation so far. Some employees have more than 180 days.. !! We are about to curtail the accumuation upto 70 days. Also, the management now feels that the encashment on current basic basis strains the budget since the basic gets revised every 3 years on salary revision.
The management now wants that the leave encashment should be as follows :
- The PL balance at the end of the year, even though carried forward should attract encashment of the basic prevailing at that point of time only.
- While encashing at any point of time, the encashment should be based on the basic and the balance carried forward yearwise. E.g. if 20 days leave was the balance in 2005, and 20 days in 2006, while encashing, say 30 days in 2007, the same should be based on 20 days of 2005 basic and 10 days of 2006 basic. But not on the current (2007 basic)
I would like to know how the other companies deal with PL accumulation and encashment. Can the memebrs throw some light on this subject. I am particularly looking for the
a) maximum allowed PL accumulation
b) encashement basis
Shall appreciate your input.
With regards
K Venkat
The management now wants that the leave encashment should be as follows :
- The PL balance at the end of the year, even though carried forward should attract encashment of the basic prevailing at that point of time only.
- While encashing at any point of time, the encashment should be based on the basic and the balance carried forward yearwise. E.g. if 20 days leave was the balance in 2005, and 20 days in 2006, while encashing, say 30 days in 2007, the same should be based on 20 days of 2005 basic and 10 days of 2006 basic. But not on the current (2007 basic)
I would like to know how the other companies deal with PL accumulation and encashment. Can the memebrs throw some light on this subject. I am particularly looking for the
a) maximum allowed PL accumulation
b) encashement basis
Shall appreciate your input.
With regards
K Venkat