Leave encashment - we do not have any clause for leave encashment in our employment terms

Hi, We are in a company, registered in shop & establishment , we do not have any clause for leave encashment in our employment terms.
Kindly let me know
1) is it legal or
2) company has to bear the leave encashment liability ?

regards,
Chumki

Dear Chumki,
As per the Labour Laws, every salaried person is entitled to a minimum number of PL every year. Such accumulated leaves can be encashed during continuation of service or at the time of retirement/resignation OR termination.
Employer can not deny leave encashment and it is illegal.

For leave encashment matters, unless otherwise provided in the policy, you have to refer your state's Shops and Commercial Establishments Act. Generally, leave encashment at the time of discharge or termination of employment due to any reason only leave encashment is possible. During or while the employee is in service such encashment may not be possible. Please refer the Act.