Struggling with Earned Leave Encashment? Seeking Advice on Effective Policies

Dear Master,

Could you please provide me with a good leave policy for the encashment of Earned Leaves? Over the past five years, I have encountered numerous issues. Each year, I have submitted a proposal to management, which has been approved after prolonged discussions, typically ranging from ten to fifteen times. While the leave policy I introduced covers aspects such as applying for and sanctioning leaves, I consistently face challenges when it comes to encashing Earned Leaves. I would greatly appreciate your insights on this matter.

Regards,
PBS KUMAR

Hi PBS Kumar,

You have not mentioned whether you are in a government job or in the private sector.

I can only tell you about my organization's encashment rules. My organization is a public sector undertaking.

Rules for encashment of leaves:

1) During service, encashment of earned leave will be permissible a maximum of twice in a financial year with a minimum of 10 days at a time without insisting on proceeding on leave, subject to the concerned employees keeping a residual leave of a minimum of 30 days at credit at the time of encashment of earned leave.

2) A person can earn up to 300 (three hundred) days of earned leave; over that, earned leave earned will lapse.

3) Calculation of earned leave encashment is:

Cash = (Basic + Dearness Allowance) x No. of EL
-------------------------
30

4) At the time of superannuation, he/she will be entitled to encashment of the whole earned leave he/she has in his/her account.

I hope this information is helpful for you.

With regards,

RK Sinha

Hi PBS Kumar,

I hope your issue has been resolved with the information I provided. If your company decides to finalize the encashment of the leave policy at any time, please forward me a copy of that to my email address randhirsinha@yahoo.com.

With regards,
RK Sinha

Dear Mr. Sinha,

It is in Compensation & Benefit citehr, 'Encashment of Earned Leaves'.
Recently, I posted it. Will you please review and advise.

Regards,
PBS KUMAR