Dear All,
I am working with a manufacturing cum engineering firm in the HR domain. I would like to know if it is mandatory to give leave encashment in full and final settlement.
Please suggest me as it is urgent.
From India, New Delhi
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2I am working with a manufacturing cum engineering firm in the HR domain. I would like to know if it is mandatory to give leave encashment in full and final settlement.
Please suggest me as it is urgent.
From India, New Delhi
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We are into retail. We don't give any leave encashment. I have read the Shops and Establishment Act for Haryana and Delhi. It didn't say it's mandatory to encash leave. Accordingly, we give 6 CL, 9 EL, and 15 privilege leave. These 15 days of privilege leave can be accumulated up to 30 days. When a person resigns, these leaves lapse. Please let me know if this is correct as per the law.
From India, Delhi
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From India, Delhi
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Hi, what if a company is settling the leaves against the notice period insted of paying for the same. Swati Jain
From India, Bangalore
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From India, Bangalore
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Swati, in FnF, Notice period Deduction is on Gross while PL/AL/EL payment is on Basic as per Factory Act, secton79.
From India, Ahmadabad
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From India, Ahmadabad
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Hi, If you are in manufacturing and this is compulsary, becoz this Leave is earned by Employee either Factory Act-1948 or anyother act applicable to you. Regards Manoj
From India, Mumbai
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From India, Mumbai
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Dear Manoj,
In F&F settlement, SL, CL, and PL should be considered for settlement calculation. If while deducting notice pay we are deducting based on gross salary but while leave encashment on basic, is there any law behind it? If yes, which act and section cover this?
Regards,
Ravi
From Germany, Lohmar
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In F&F settlement, SL, CL, and PL should be considered for settlement calculation. If while deducting notice pay we are deducting based on gross salary but while leave encashment on basic, is there any law behind it? If yes, which act and section cover this?
Regards,
Ravi
From Germany, Lohmar
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Dear Ravi,
As per the standard set under the statute, only PL encashed; other leaves will lapse. However, this depends on your leave policy. You should deduct the remaining amount compared to your notice, which should be paid to the concerned employee as per the leave rules under the applicable acts, i.e., the Factory Act-1948 and The Industrial Employment (Standing Orders) Act-1946.
Please check.
Regards,
Manoj
From India, Mumbai
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As per the standard set under the statute, only PL encashed; other leaves will lapse. However, this depends on your leave policy. You should deduct the remaining amount compared to your notice, which should be paid to the concerned employee as per the leave rules under the applicable acts, i.e., the Factory Act-1948 and The Industrial Employment (Standing Orders) Act-1946.
Please check.
Regards,
Manoj
From India, Mumbai
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Full n final settlement.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf