Leave Encashment in Final Settlements: How Do You Ensure Legal Compliance?

Please suggest how to calculate leave encashment in full and final settlement as per legal requirements.

Leave encashment should be calculated on Gross Salary, unless specifically mentioned in writing that it will be on Basic Pay.

Dear Kamlesh,

In case any employee has availed leaves over and above his eligibility, the rate at which your company is deducting the amount from the employee should be the same rate you need to pay to the candidate. Unless you have a policy or certified standing orders, you need to pay in full.

Thank you.