We have a system of providing 15 Earned Leaves, 7 Casual Leaves and 8 Medical Leaves to all our employees.
Since a long time, we have had a system of carrying over the entire un-availed leaves. We have been encashing the same as and when the employee puts in an application. This seems to have helped in employees not taking a leave.
We have found that some employees have accumulated the said leaves over 5-7 years. And the amount now is becoming quite large as the amount grows with increase in Basic.
My query is
1. We now plan to put a bar on the no. of leaves which can be carried over to next financial year (or employment year). Is it OK?
2. In the past we were deducting TDS on the said amount. The employees have put in a request that we book the Leave Amount under the head Staff Welfare so the TDS can be saved for them. Is it legally tenable?
If any could share "Best Practice" for the above matter.
Thanks
AnoopA
Since a long time, we have had a system of carrying over the entire un-availed leaves. We have been encashing the same as and when the employee puts in an application. This seems to have helped in employees not taking a leave.
We have found that some employees have accumulated the said leaves over 5-7 years. And the amount now is becoming quite large as the amount grows with increase in Basic.
My query is
1. We now plan to put a bar on the no. of leaves which can be carried over to next financial year (or employment year). Is it OK?
2. In the past we were deducting TDS on the said amount. The employees have put in a request that we book the Leave Amount under the head Staff Welfare so the TDS can be saved for them. Is it legally tenable?
If any could share "Best Practice" for the above matter.
Thanks
AnoopA