Dear Divyesh,
As per your narration the particular employee has worked in that year less than 240 days excluding the days availed as weekly-off and National holidays, right? If so, can you tell me whether the days of absence falling short of 240 days are just unathourised absence on account of no prior intimation or leave on loss of pay after duly informing the management? In case of unauthourised absence any disciplinary action was tasken against him? Since you have mentioned only the constitution of the establishment and not its type such as whether a shop or factory, I have to keep my answer simply very general. Firstly, eligibility for earned leave arises if and only if the employee has worked for 240 days or more in a calendar year or 2/3 of the total no of days in the remainder of the calendar year if his service commences on any day other than the first day of January.Secondly, no explicit or implied provision in any Law, if I remember correct,for encashment of earned leave other than in the event of termination of employment.