Dear All, As per the policy, we are crediting EL only after the employee completes one year of service. Crediting of 15 days of EL happens in January of every year.
When an employee resigns in the middle of the year, say, 1st Oct,
• We are deducting the leave on a pro-rata basis, in this case for 3 months (OND) which is 3.75 days and
• Encashing the balance left.
Is this practice correct? or should we add the current year's leave also during FNF and pay the employee for the balance left of the previous year + the leaves of the current year (from Jan to Oct in the above example)
When an employee resigns in the middle of the year, say, 1st Oct,
• We are deducting the leave on a pro-rata basis, in this case for 3 months (OND) which is 3.75 days and
• Encashing the balance left.
Is this practice correct? or should we add the current year's leave also during FNF and pay the employee for the balance left of the previous year + the leaves of the current year (from Jan to Oct in the above example)