Earned Leave for Off-Role Employees: Is Monthly Payout Possible?

Dear Sir, Can we pay earned leave on a monthly payout to off-role employees?

In fixing the compensation package for the off-roll workers, you may include compensation for earned leave as a factor. Please verify the wage bills and attendance of these workers to see whether they are getting the benefit of it or if the middleman (the contractor) is pocketing it.

Please go through the applicable Act under which an employee/worker is allowed to enjoy earned leaves. If you find any provision that allows you to pay earned leaves on a monthly basis, then you can start this practice. In our opinion, this is not included in any Act. We are required to encash these leaves if they are found due upon separation from service.

Regards,
R N KHOLA