Is Earned Leave Encashment Legally Required in India for IT Companies?

ritu.mehra

Hi, I have one urgent query. Does "earned leave encashment" come under any law in India? I am from Hyderabad and work for an IT company. We allow earned leave encashment after 3 years of service. Is that legally acceptable? I would appreciate quick answers to that.

RT

jeevarathnam

Hi,

EL encashment comes under the Leave with Wages Act as per the Shops & Commercial Establishment Act. No leave shall be carried forward beyond 30 days.

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