Hi Santosh,
Benefits and drawbacks of Earned Leave Encashment
There are several benefits and drawbacks associated with Earned Leave Encashment for both employees and employers. From an employee's perspective, the ability to convert accrued leave into monetary compensation can provide financial flexibility and a sense of added value for their time off. However, it may also lead to employees feeling pressured to forgo taking actual time off in order to receive the financial benefit.
From an employer's standpoint, offering Earned Leave Encashment can be a tool for cost control and may help in managing staffing levels. On the other hand, it could also result in increased financial liability and potential impact on employee morale. It's important for both parties to carefully consider the implications before implementing such a policy.
Thanks,