Casual leave adjustment rule in full and final settlement.

Dear professionals we credit 12 casual leave in employee Leave account from january,it means 1 casual leave for one month but if employee consume all the casual leaves and left the jobs in May ( he is eligible to take 5 CL only instead of 12) then can we deducted extra 7 CL payment from his Full and final payment. please advice about Casual leave adjustment while preparing full and final payment statement of employee. Please advice

If you have sanctioned 12 casual leaves in five months. how can you recover it from the employee? You should not have approved the leave but rejected or marked the leaves as LOP. It is your duty to ensure that such a leave is sanctioned pro rata and you cannot put it on the shoulders of the employee. Recovering the 7 days' leave can be challenged by the employee especially if he is a workman.

Hi

At times it is common employee avail leave in excess which is projected for the whole year. However for more than 2 days Leave CL should not be considered and it should have been adjusted from the EL balance.

You may explain the employee and recover the payment for excess leave availed.

It is basically depends on leave rule. In leave rule if it is mentioned that the employee is eligible for 12 days CL per year but in case of termination of the job for whatsoever reason it will be calculated on pro rata basis then there is no harm in adjusting excess CL enjoyed from F & F.

If it is not mentioned then the employee can enjoy the entire eligible leave before hand and it should not be adjusted during F & F.

S K Bandyopadhyay ( WB, HOWRAH)
CEO-USD HR Solutions
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You have already credited 12 days CL in employee's leave account, and the employee concerned
has enjoyed full 12 days before separation. Generally speaking, you can not adjust the same.

Does your leave policy speaks about CL that one CL is only eligible for employees for one month.
In that case, you can adjust balance 7 days pay in F&F settlement, after communicating to him.
If your leave policy is silent about this, it is better to allow 12 days, as he has availed it already.
Also you have to think another case; suppose another employee leaves the company in the middle of the year, without availing any CL. In that case, will you encash CL, pro-rated to the number of months he has put in, in your company?.

Dear Professionals, I am very thankful to you all and this forum for always getting good and valuable guidance to solve HRD related problem.