Is Privilege Leave Encashable Under Kerala Shops & Commercial Establishment Act?

Hi,

My name is Rakesh, and I work as an Assistant Manager-HR at a resort in Kerala. I would like to clarify whether privilege leave is encashable according to the Kerala Shops & Commercial Establishment Act.

Regards

Hi Buddy,

I don't know about the Kerala Shops and Establishment Act, but one thing to note is that every state act is framed in accordance with the central act/rules. Hence, as per the central rules, PL/EL is encashable.

With Regards,

Mr. Thumbs Up

Praveen, please tell me which section of which act says PL/EL is encashable.

Thank you.

You just said that as per the central rules and act, it is encashable. Then you give the Tamil Nadu act reference.

Please show me the section or rules under central rules where it says so.

Mr. Banarjee,

I did not find any central government provisions regarding the S&E Act mentioned in my above post. Every state law is framed as per the central government act/rules by comparing it to the Factories Act, but I could not find that one. I apologize for my mistake in quoting it like that.

However, I am sure that there should be a draft S&E Act. I will find it and post it here.

With Regards,

Mr. Thumbs Up

Encashment of Privilege Leave Under State Laws

As per the Shops and Establishments Acts applicable in their respective states, privilege leave (PL) is encashable only when an employee leaves the service. It is a provision to store the balance of earned leave (EL)/PL in the employee's account with an upper limit, which varies according to each state's SE rules.

Encashment of EL/PL every year or as the company wishes is permissible, but it is not mandatory for the company to pay leave encashment to its employees. If you refer to the section on leave in the SE rules, you will find the details of the section and rule there.

Regards,
Bipender Gupta

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