Dear All,
Good Morning,
We had a employee who has worked with us from 05.01.2023 to 13.02.2023.
We are processing his F&F. But we have a confusion.
Is he eligible to get leave encashment of 1 EL or not.
If not, what is the fix criteria to pay for Earned Leave.
Let suppose, if any employee worked in an organization only 4,5,6,7 months only.
Are they eligible for leave encashment.
Please advise.
From India, Bahadurgarh
1Good Morning,
We had a employee who has worked with us from 05.01.2023 to 13.02.2023.
We are processing his F&F. But we have a confusion.
Is he eligible to get leave encashment of 1 EL or not.
If not, what is the fix criteria to pay for Earned Leave.
Let suppose, if any employee worked in an organization only 4,5,6,7 months only.
Are they eligible for leave encashment.
Please advise.
From India, Bahadurgarh
An employee will get EL only when he works for a required number of days. It can be 240 days in the preceding year or 12 months, depending upon the Act which is applicable to your organisation, like Factories Act or Shops and Commercial Establishments Act, as the case may be. Since none of the Act says that on completion of just one month, one should be paid EL. It is a question of law when you take prorata working days for six months or quarter of a year and therefore, in such cases, ie, cases where the employee has worked for say 6 or 7 months you can take a call.
From India, Kannur
From India, Kannur
Factories act provides for credit of leave (which can be used or encashed on termination) on jan 1 of each year based on previous years number of days worked.
Shop act in most states follow the same rule.
If your company voluntarily follows a more beneficial policy, the law allows it. Whether that will be enforced and encashable will depend on whether you have specified it in the appointment letter, or HR manual. If no6, check whether it’s in the standing orders (if applicable)
If you have not committed it or it is not in the terms of employment, then it is not payable. He will be eligible only after working for 240- days as specified by Madhu-ji
From India, Mumbai
Shop act in most states follow the same rule.
If your company voluntarily follows a more beneficial policy, the law allows it. Whether that will be enforced and encashable will depend on whether you have specified it in the appointment letter, or HR manual. If no6, check whether it’s in the standing orders (if applicable)
If you have not committed it or it is not in the terms of employment, then it is not payable. He will be eligible only after working for 240- days as specified by Madhu-ji
From India, Mumbai
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
EPFO Circular Leave Encashment.jpg