How to Calculate Leave Encashment for an Employee with Long Leave Requests?

Respected Seniors,

Hope you are all doing fine. My question pertains to a new organization currently in the process of creating policies. How can we calculate the leave encashment for the following employee in the year 2017:

Date of Joining

- 06-03-2012

Availed Leaves

- 10 days in Aug-2013 (Continuous on one leave application)
- 15 days in July-2016 (Continuous on one leave application)
- 07 days in Feb-2017 (Continuous on one leave application)

The employee is now requesting leave encashment from his date of joining. We have the following leave entitlement for the year for employees:

- Annual Leave - 14 days
- Sick Leave - 08 days
- Casual Leave - 10 days

Please also advise whether long leave (e.g., more than 4/5 days) may be classified as casual leave or considered as Annual Leave.

Considering his leave status, kindly calculate the leave encashment, bearing in mind that annual leave is granted after one year of service.

Your assistance in this matter is greatly appreciated.

Regards, Abdul Basit

Please confirm whether your organization is new or old, if it has been in existence for more than five years. If an employee's date of joining is 2012, it can't be a new organization. Regarding the leave policy, please type "Leave Policy" in the search tab to find a few leave policies that you can amend as needed. I am enclosing the Leave Policy for your perusal; kindly check if it is of any help to you.

I see that you are based in Pakistan. Most advice that you will get here is India-centric. I would suggest you look up the statutory provisions pertaining to Pakistan to understand the decisions you need to make. Indian laws are irrelevant to Pakistan.