Can anybody suggest how PL encashment is being calculated? Is it based on the gross or net salary? Is the employee eligible for PL until the date he resigns from the office? Are there any Acts/rules relating to PL encashment prescribed by the Labour Act, or is the decision left to management?
From India, Madras
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From India, Madras
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Yes, dear,
You can avail the benefit of PL encashment until the date of your resignation. For the calculation of PL encashment, your BASIC + DA and taxable allowance are considered, and it is fully exempted under Section 10 of the Income Tax Act, 1961. It means you do not have to pay any tax on that income.
Hope you might be clear. For further clarity, contact me at
.
Bye,
Take care.
From India, Ahmadabad
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You can avail the benefit of PL encashment until the date of your resignation. For the calculation of PL encashment, your BASIC + DA and taxable allowance are considered, and it is fully exempted under Section 10 of the Income Tax Act, 1961. It means you do not have to pay any tax on that income.
Hope you might be clear. For further clarity, contact me at
Bye,
Take care.
From India, Ahmadabad
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I joined a Pharma company in June 2005. The company has a policy for 28 days of PL (Paid Leave) every year. PL could be accumulated up to 90 days. After that, half of the excess PL can be availed and half encashed if the employee applied to avail leave but the superior has rejected and recorded it.
In 2007, the above PL policy was amended through a circular which states that after the accumulation of 90 days, all excess PL may be encashed if applied to avail PL but rejected by the superior (no need to avail half PL and encashment).
We followed the policy guidelines and accumulated more than 200 PL in 8 years and 6 months of service, but were never paid any amount in lieu of excess PL due to a paucity of funds. However, we were assured that whenever funds are available, the amount will be released.
Again in 2013, the company changed the PL policy which states: Maximum PL accumulation will be 180 days, out of which 120 days will be encashed at the time of separation. However, the encashment policy during the job remained unchanged, i.e., applied to avail leave, rejected by the superior, and recorded.
In November 2013, we were asked to leave the company due to financial problems. The management decided to downsize the company.
Our account was settled, but we have been paid the encashment of 120 days only instead of all PLs which were accumulated because of non-approval to avail PL during the job. The management is citing the 120 days clause of the current policy and ignoring other clauses by which our PL accumulated more than 200 days since we could not avail it. My pending amount is approximately Rs. 55,000.00.
Can I have a legal remedy? What is the legal status of our excess PL not paid?
From India, Delhi
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In 2007, the above PL policy was amended through a circular which states that after the accumulation of 90 days, all excess PL may be encashed if applied to avail PL but rejected by the superior (no need to avail half PL and encashment).
We followed the policy guidelines and accumulated more than 200 PL in 8 years and 6 months of service, but were never paid any amount in lieu of excess PL due to a paucity of funds. However, we were assured that whenever funds are available, the amount will be released.
Again in 2013, the company changed the PL policy which states: Maximum PL accumulation will be 180 days, out of which 120 days will be encashed at the time of separation. However, the encashment policy during the job remained unchanged, i.e., applied to avail leave, rejected by the superior, and recorded.
In November 2013, we were asked to leave the company due to financial problems. The management decided to downsize the company.
Our account was settled, but we have been paid the encashment of 120 days only instead of all PLs which were accumulated because of non-approval to avail PL during the job. The management is citing the 120 days clause of the current policy and ignoring other clauses by which our PL accumulated more than 200 days since we could not avail it. My pending amount is approximately Rs. 55,000.00.
Can I have a legal remedy? What is the legal status of our excess PL not paid?
From India, Delhi
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