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Want to know that when an employee is entitled for pl?and if employee resigns then is it necessary to en-cash pending pl is that mandatory?
From India, Indore
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Dear Gupta It is mandatory for the management to encash the pending pl when any employee resigns along with the other dues of the employee.
From India, Gurgaon
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Dear Swati You can complain against the management to the Labour Inspector and Labour Authorities for not paying pl encashment.
From India, Gurgaon
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Yes its mandatory to complete the final settlement by paying the employee for his/her earned leaves, else the employee has all rights to compain against the management. Warm Regards, Indira Somala
From India, Hyderabad
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The term Previlege Leave or Earned Leave is self explanatory. But EL/PL is encashed on basic. Pon
From India, Lucknow
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Dear Pon, Plz let us know which of the law including section/rule says that we are to encash earned leaves on only basic wages. Regards, R N KHOLA
From India, Delhi
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I am not expert on rules, but it is prevalent on many organisations as far as I know and avail the same. If rule book says something different, I am not aware. Pon
From India, Lucknow
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Hi R N KHOLA, Please refer to ANDHRA PRADESH SHOPS AND ESTABLISHMENTS ACT, 1988. Its clearly mentioned. ~Indira
From India, Hyderabad
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Please refer to the Factory Act of 1948 or the Shop Establishment Act of 1988 and also refer to your appointment letter for details on leave encashment. If you have someone reporting to you, then your complaint will go to the Civil Court, not the Labour Court.
From India, Pune
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Hello Gupta., It’s mandatory for the management to encash the pending pl when any employee exit the company. Regards Geetha HR_Executive
From India, Bangalore
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Encashment of PL

Encashment of PL is mandatory, and it should be encashed based on the gross salary and paid up to 45 leaves. The calculation formula should be salary/26 multiplied by the number of PL.

Thanks & regards,

[Phone Number Removed For Privacy Reasons]

From India, Ghaziabad
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EL’s / PL’s how will we calculate ? please tell me the procedure for caliculation of EL’s / PL’s ?
From India, Hyderabad
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sir, pls tell me that any employer can encash PL on basic (Basic salary/30*nos of PL) it is wrong or & more than 15 PL can be leps by employer.
From India, Delhi
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Yes, it is a wrong practice. Encashment is always calculated based on 26 instead of 30, and the salary should be gross, not basic. Simply put, if somebody is absent and their salary is deducted, you deduct only the basic or basic + all allowances.

Thanks & regards,
Sumit

From India, Ghaziabad
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PL encashment is not part of CTC; it is a sort of benefit. When you are absent, the deductions will be based on the gross salary, whereas, while calculating a benefit, it is generally based on the basic salary. Following your logic to deduct only the basic salary during absence, if you are absent for a whole month, assuming no accumulated leaves are available in your account, would you expect the salary excluding basic?

Regards,
Pon

From India, Lucknow
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