Yes, as per the Shops and Establishment Act of Karnataka, encashment of earned leaves is mandatory for employees who have resigned. For employees working in a shop or a commercial establishment in India, earned leave is calculated as one day for every 20 days of work performed.
Here are the steps to calculate it:
1. Count the total number of days the employee has worked.
2. Divide the total number of days worked by 20.
3. The result is the number of earned leaves.
4. Multiply the number of earned leaves by the daily wage to calculate the total amount to be encashed.
However, the maximum accumulation of earned leaves is restricted to 30 days. If an employee has more than 30 days of earned leaves, he/she can only encash a maximum of 30 days.
Please note that the laws may vary depending on the state and the type of establishment. I would recommend you to refer to the Karnataka Shops and Establishments Act for accurate information.