Leave Encashment Policy: Is It Mandatory?
Whether it is mandatory to have a policy of leave encashment. Whether it is covered under any act or law to have leave encashment in a company. If yes, please provide the legal provisions for the same.
Regards,
Yogesh
From India, Delhi
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Whether it is mandatory to have a policy of leave encashment. Whether it is covered under any act or law to have leave encashment in a company. If yes, please provide the legal provisions for the same.
Regards,
Yogesh
From India, Delhi
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As per Section 79(5) of the Factories Act, there is a provision for the accumulation of up to 30 days and unlimited in case of refusal by the employer. Such accumulated leaves need to be encashed to the employee at the time of separation. However, one can create their own leave encashment policy, which I don't believe is a requirement of any law.
Regards,
Ravinder Singh
[Phone Number Removed For Privacy Reasons]
From Singapore, Singapore
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3Regards,
Ravinder Singh
[Phone Number Removed For Privacy Reasons]
From Singapore, Singapore
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As rightly quoted, as per the Factories Act, the accumulation of earned leave is subject to a maximum of 30 days, and any leave above 30 days is automatically nullified. If an employer agrees to allow accumulation without imposing any conditions, it is permissible, and the leave shall be encashable after resignation/termination, etc., based on the last drawn salary (Basic + DA).
Some organizations have a policy of encashing leave every year after the completion of 30 days of leave accrual in order to minimize liability, which is also considered a good practice. Each organization shall have its own leave policy, provided that the Factories Act and its rules are followed.
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Chandru
Bangalore
From India, Bangalore
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Some organizations have a policy of encashing leave every year after the completion of 30 days of leave accrual in order to minimize liability, which is also considered a good practice. Each organization shall have its own leave policy, provided that the Factories Act and its rules are followed.
Regards,
Chandru
Bangalore
From India, Bangalore
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It is up to the company's discretion to follow the Factories Act or to create their own policies for leave encashment. In either case, the company must pay for the accumulated number of leaves. The leave encashment is capped at 30 days for an adult worker who has worked for 240 days in the previous year under the Factories Act.
Regards,
[Name]
From India, Mumbai
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Regards,
[Name]
From India, Mumbai
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There is no statutory compulsion to take a Leave Encashment Policy, but Accounting standards insist on valuation of liabilities like Leave Encashment and Gratuity.
From India, Madras
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From India, Madras
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Hi friends Can employer refuse to leave encashment at the time of seperation to sr Manager or AGM kindly help
From India, Delhi
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From India, Delhi
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Leave Encashment at Separation
An employer cannot refuse leave encashment at the time of separation if leave rules are in place for encashment, which are applicable to this employee. If no rules are specified, then examine under which act this manager is covered regarding encashment of leaves.
R.N.Khola
Sr. Vice President, Labour Law Advisers Association, Gurgaon.
Hi friends, can an employer refuse leave encashment at the time of separation for a Senior Manager or AGM? Kindly help.
Regards
From India, Delhi
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An employer cannot refuse leave encashment at the time of separation if leave rules are in place for encashment, which are applicable to this employee. If no rules are specified, then examine under which act this manager is covered regarding encashment of leaves.
R.N.Khola
Sr. Vice President, Labour Law Advisers Association, Gurgaon.
Hi friends, can an employer refuse leave encashment at the time of separation for a Senior Manager or AGM? Kindly help.
Regards
From India, Delhi
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Hi Seniors, I am still waiting reply. Can employer refuse to leave encashment at the time of seperation to sr Manager or AGM. one has refused & not paid. kindly advise regards
From India, Delhi
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From India, Delhi
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What is the ceiling on bonus and leave encashment? I have information that there is a ceiling on a bonus of Rs. 10,000. If a company wishes to pay more, it will be considered an ex-gratia payment. Also, for earned leave (EL), only Basic and Dearness Allowance (DA) should be taken into account for calculation.
From India, Mumbai
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From India, Mumbai
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Our company is a registered private limited company operating chain stores in three different states. We are based in Mumbai, with the administrative office located in Chennai. Please advise on how we should apply various statutory rules, and also provide information on the bonus and leave policies that are applicable to retail stores. Thank you.
Regards,
From India, Mumbai
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Regards,
From India, Mumbai
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can anyone suggest me how i can approch & convience my management for leave eancashmen. i need some strong & logical point.
From Bangladesh, Dhaka
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From Bangladesh, Dhaka
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FACTORIES ACT-leave rules.doc
Factories Act-Sec.79-Leav e.pdf