Hi, I belong to an HR outsourcing company. We have have been offering contract staffing services to a large manufacturing company and my question is related to the leave encashment.
As a part of contract, our employees working in the organisation are entitled for 21 leaves annually. Although, we have not bifurcated the leaves into PL/CL/SL, our employees can avail leave on prorata basis, depending on the days worked. I need clarification on the following
1. Since, availing or not availing the leave is entirely an employee\'s prerogative, I am little confused, whether a provisional amount pertaining to leaves accumulated should be made in monthly CTC or not as the same has to be billed to the client.
2. Should the leave pay be calculated on Basic wages or Gross salary? Again, how should we bill the proportionate amount to the client?
Your contribution to the same will be highly appreciated.
As a part of contract, our employees working in the organisation are entitled for 21 leaves annually. Although, we have not bifurcated the leaves into PL/CL/SL, our employees can avail leave on prorata basis, depending on the days worked. I need clarification on the following
1. Since, availing or not availing the leave is entirely an employee\'s prerogative, I am little confused, whether a provisional amount pertaining to leaves accumulated should be made in monthly CTC or not as the same has to be billed to the client.
2. Should the leave pay be calculated on Basic wages or Gross salary? Again, how should we bill the proportionate amount to the client?
Your contribution to the same will be highly appreciated.