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I want to know if an employee has resigned and completed notice period . How his leave to be settled . On gross salary or basic and da . Is any specific rule is under labour law .
From India, Mumbai
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Pramod, It’s to be settled on Basic+DA. Kindly refer Chapter VIII of the Factories Act, 1948. Cheers, A.B.
From India, Mumbai
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Dear Pramod, What is your leave encashment policy for your present employee, those who are working in organization ? You need to follow the same for those employees who has resigned.
From United Arab Emirates, Dubai
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I think most of the labor laws specify that leave salary is to be paid at the gross rate. You cannot pay it at basic and DA. However, you need to provide the relevant details of your organization, structure, and location to allow us to give more correct information.
From India, Mumbai
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Dear Member,

Payment against leave salary may be specified in the personnel policy of the organization. Leave salary will be calculated based on the amount of leave balance after adjustment against the notice period, if required. Sometimes slabs will be fixed for payment of leave balance.

From India, Visakhapatnam
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