Can Employees Cash Out Paid Leave While Still Working? Seeking Advice on Policy

Dear Seniors, Please help me with the matter below. One of our employees wants to encash his PL while still working in service. What should I do? Can we encash his leave? I am currently processing encashment only if someone is leaving their job. At the time of full and final settlement, we handle PL encashment.

However, the situation is different now; the employee is still working with us and wants to encash his leave. Please revert with your valuable feedback.

Regards,
Vrusha

It depends on the company. You can accumulate up to 60 days maximum. More than 60 days will elapse. The company has to pay for the 60 days when you leave.

Regards,
Arvindarjun

Dear Vaishali, Vrusha, this is not a big question. If the company has no policy in this regard, you can opt for this by today only. As stated by Prashant Ingawale, as per the Factory Act, the accumulation limit is 30, and you can encash above accumulated leaves. Normally, encashment of accumulated leaves is released in the month of December at the last spell or beginning of January. It is a good practice from the company's point of view as the encashment of leave is based on the last salary drawn. If the same is accumulated over many years, you have to pay that on the last salary, which may be much higher. Hence, it is beneficial if the encashment of leave is made every year.

Regards,
KIRAN KALE