Is Leave Encashment Mandatory or Should Employees Just Take Their Leave? What Does the Law Say?

grk1961
Please let me know whether leave encashment is mandatory or not. Some companies say, "Let them take leave," or "We encourage employees to take leave," etc. What is right as per the law?
pon1965
Leave Encashment: Mandatory or Not?

Leave encashment is not mandatory. Some companies encourage taking leave, while others prefer encashment.

Regards,
Pon
saswatabanerjee
Under both the Factories Act and most of the Shop and Establishment Acts, leave encashment is necessary and mandatory only at the time of termination of employment (whether resigned or terminated). There is no compulsion to give encashment while in employment.
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