Termination of contract - eligible to take the encashment for the balance of his annual leave?

zahra_akhtari
Hi friends, Would you please some one reply my question at the earliest possible.
If one employee who is entitled to take 25 yearly paid leave, has resigned before completing the first year. Will he eligible to take the encashment for the balance of his annual leave of duration that he was working for the company or by termination of the contract the benefits also will be canceled
Waiting to receive your responses at the soonest possible.
Thank you & best regards,
svandana9
Hi,
According to my information,If the candidate has completed his probation period and leaving after completing his probation period then he is eligible for take the encashment for the balance of his annual leave of duration that he was working for the company.
Regards,
nikkyblue
Whether on probation or not, employee will get encashment for the accrued PL for the days he has worked for ( on pro-rata basis ) ..
nikhil
unusual_indu
Hi
I agree with Nikhil.Moreover I would just liketo add that in our company the rule is 1 Pl gets accrued after every completed month of service so in case he has worked for 6 months he has got 6 leaves in his kitty.If he has already taken leaves then he can encash the balance amount.As rightly pointed out by Nikhil it should be on prorata basis.
Thanks and Regards
Indrani Chakraborty
Neha Jain HR
Just to add to Indrani, in case of termination case also the complete full and final settlement should be done including encashment of leaves on prorate basis.
Regards
Neha Jain
vinodsomal
Hi
To answer your question, first check Kuwait Labour Law. It might specify different scenarios for Resignation and Termination.
In any case, Leave Encashment has to be paid as per accrued days as on his last date of notice. The rate at which the leave accrued might differ. For eg here in Dubai, if an employee has completed probation period (6 months) but not complted one year, according to UAE Labour Law the leave accrued is at the rate of 2 days per month. Once he completes One year, this increases to 2.5 days per month.
Thereefore, I suggest you check the Kuwait Labour Law carefully.
Regards
Vinod Somal
sweetysingh
Hi,
If the employee has completed 4 months of continued employment, he /she will be entitled for the encashment in the present situation (Ref: Section 22 (1) of Factories Act)
thanx,
Sweety Singh
p ramachandran
Dear zahra,
How he is having 25 days PL leave balance on completing one year experience?
Ok,If it is your company policy,you please see is there any provision in the PERSONNEL POLICY of your company for encashment. Otherwise, He is elegible for payment for 25 days after deducting any amount if he is due.
Thanks
P.RAMACHANDRAN
zahra_akhtari
Dear P.RAMACHANDRAN,
as per our companye policy and based on the amount of salary the PL has been devided to 4 divisions:14,21,25,30 days therefore if the mentioned employee completed one contract year he was entiteled to take 25 days
Thank you for your respoponce
Best Regards,
vinodsomal
Dear Zahra
The responses have been received mostly from India who follow Factory Act. However, as I pointed out earlier, Labour Laws in Gulf are quite different from India. Hence, please check the Kuwait Labour Law and then your Company's HR Manual. Accordingly you should act.
Thanks and best regards,
VINOD SOMAL
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute