Leave Encahsment - Doc Download

Hi,
I want to know whether an employee leaving the job is eligible for Leave Encashment or no? If yes, is that amount taxable?

Yes, The employee is eligible for Leave encashment on pro rata basis if the leave is credited at the start of financial year. yes it is taxable

Our company gives encashment of 50% for 10 days medical leave for the year. If any employee or workman get retired in the begining of calender year then is he / she is eligible to avail entire 10 days leave or encashment? If not kindly refer me with the Act amendment & the section / rule under which it has been highlighted. Please help me on this.
Regards,
Masterguna

Dear Mr.Guna
Whatever be the policy of the company regarding leave encashment it cannot be contrary to the provisions of the labour law applicable. What is the law applicabvble depends on the settings in which you are employed that is whether it is a factory or an establishment etc., and moreover it has to be seen whether the Act is applicable to you also depending on your position in the organisation. Without these details it will be difficult to take a view on the issues raised by you.

Dear Mr.V.Harikrishnan
Joint Commissioner of Labour(Retired)
Government of Tamilnadu
Thanks a lot for updates on leave encashment .
Regards,
AK Sharma
Manager- Compliance

Friends,
Good news for all of you. Leave encashment at the time of resignation is not taxable. Pl go through attached file for High Court decision in this regard.
Thanks

Dear Sir (Mr. V. Harikrishnan),
Thank you very much for your reply. Well, We are a manufacturing (factory) company and I am designated their as Dy.Manager (P&A), earlier our company used to give encashment of 50% for 10 days medical leave for the year till the date. Recently some of our workmen get retired in January 2012 and they availed full encashment for the entire 2012. My question is that can we make it proportionate monthly wise and calculate accordingly to the retire workman? If yes kindly refer me with the Act amendment & the section / rule under which it has been highlighted.
Sir, Please help me on this.
Regards,
Master Guna.

Dear Sir,
The Employee leaving the job is eligible for leave encashment amount.
Leave Encashment amount is taxable amount.
D.Gurumurthy
HR/IR Consultant

Leave Encashment Eligibility:- Total no. of mnth days frm Jan to last mnth *2 / 3=No. of days he/she must have worked otherwise leave encashment will not be given
No. of leaves to be encashed formula:- No.of days actually worked /20 = no. of leaves to be encashed
Leave Encashment formula Basic/26* total leaves pending
Bhagyashree

Sir,
Medical leave falls under which central act? In Maharashtra Sick leave is the leave falls inder Standig order.But is there any other act which is comprsing of medical leave and it's encashment? Sir pelase advice upon this?
Mangesh Wakodkar
Aurangabad.