Dear All,
Hope all of you are doing fine.
Can anyone please suggest to me what is the maximum number of EL/PL an employee can accumulate in his/her account? i.e., up to what limit can one carry forward these leaves. If one accumulates that particular number of maximum leaves, then when are they entitled to reimbursements for the accumulated leaves.
Regards,
Seema Gupta
From India, Calicut
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1Hope all of you are doing fine.
Can anyone please suggest to me what is the maximum number of EL/PL an employee can accumulate in his/her account? i.e., up to what limit can one carry forward these leaves. If one accumulates that particular number of maximum leaves, then when are they entitled to reimbursements for the accumulated leaves.
Regards,
Seema Gupta
From India, Calicut
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Hi Seema,
As per the Factories Act 1948, any member can accumulate a maximum of 30 PL. However, I have observed that in many companies and manufacturing units, many employees have more than 100 leaves. Any employee can encash PL at the time of resignation or superannuation.
Thanks
From India, Gurgaon
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As per the Factories Act 1948, any member can accumulate a maximum of 30 PL. However, I have observed that in many companies and manufacturing units, many employees have more than 100 leaves. Any employee can encash PL at the time of resignation or superannuation.
Thanks
From India, Gurgaon
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Hi Seema,
Very well defined by Raj. Actually, it depends on company policy, which differs from one to another. Some companies carry forward only a limited number of leaves, and the rest of the balanced leaves, if any, get lapsed. The encashment mode also differs; some encash at the end of every year, while some do the same at the time of separation from the company. Additionally, some companies pay it at the basic salary only, whereas some at the gross salary.
Regards,
Amit Seth.
From India, Ahmadabad
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Very well defined by Raj. Actually, it depends on company policy, which differs from one to another. Some companies carry forward only a limited number of leaves, and the rest of the balanced leaves, if any, get lapsed. The encashment mode also differs; some encash at the end of every year, while some do the same at the time of separation from the company. Additionally, some companies pay it at the basic salary only, whereas some at the gross salary.
Regards,
Amit Seth.
From India, Ahmadabad
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Dear Seema,
In our organization, the maximum number of ELs an employee can accumulate is 60. If they exceed 60, they can encash up to 8 ELs, and the remaining will lapse. For example, if an employee has 72 ELs, 60 will carry forward, 8 can be encashed, and the remaining 4 will lapse. They can claim encashment before the financial year-end. The amount will be reimbursed along with the next month's salary.
Regards,
Subhash
From India, Hyderabad
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In our organization, the maximum number of ELs an employee can accumulate is 60. If they exceed 60, they can encash up to 8 ELs, and the remaining will lapse. For example, if an employee has 72 ELs, 60 will carry forward, 8 can be encashed, and the remaining 4 will lapse. They can claim encashment before the financial year-end. The amount will be reimbursed along with the next month's salary.
Regards,
Subhash
From India, Hyderabad
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Does it apply to the companies who are registered under shop and est. act?? regards Seema Gupta
From India, Calicut
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From India, Calicut
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Hello,
This is my first post on this community. I have a query regarding whether a company can change its rules regarding Earned Leave (EL) accumulation limit and encashment limit at any time. For example, some employees have accumulated their leave up to the maximum limit over a period of employment of 10-15 years, and suddenly the company changes its rules to reduce the accumulation limit, causing the excess leave to either lapse or be frozen beyond the new limit.
Thank you.
From Japan
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This is my first post on this community. I have a query regarding whether a company can change its rules regarding Earned Leave (EL) accumulation limit and encashment limit at any time. For example, some employees have accumulated their leave up to the maximum limit over a period of employment of 10-15 years, and suddenly the company changes its rules to reduce the accumulation limit, causing the excess leave to either lapse or be frozen beyond the new limit.
Thank you.
From Japan
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Hello friends,
I am a little confused after hearing that the accumulation is decided by the company. I spoke to my consultant regarding the maximum accumulation of leaves. He said that the maximum leave with wages a laborer can accumulate is 30 days and the balance has to be paid by the employer at the start of the subsequent year.
I have a few questions:
1. Is it necessary to give the payment for the excess leaves? Can the company set the ratio by itself?
2. What does the law state? Is there any mention of the maximum number of accumulated leaves?
Await your reply.
Thanks & Regards,
Anant Karnani
From India, Jodhpur
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I am a little confused after hearing that the accumulation is decided by the company. I spoke to my consultant regarding the maximum accumulation of leaves. He said that the maximum leave with wages a laborer can accumulate is 30 days and the balance has to be paid by the employer at the start of the subsequent year.
I have a few questions:
1. Is it necessary to give the payment for the excess leaves? Can the company set the ratio by itself?
2. What does the law state? Is there any mention of the maximum number of accumulated leaves?
Await your reply.
Thanks & Regards,
Anant Karnani
From India, Jodhpur
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govt is a model employer ie careful study of their rules gives a holistic view. next pick on compensation trends surveys eg by Mercer then frame a policy for your cos
From India, Delhi
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From India, Delhi
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Hi Seema Gupta, I can give you an answer about EL/PL accumulation. The EL/PL shall be accumulated up to a maximum of 60 days. EL/PL shall be eligible only after the completion of one year. Employees shall be eligible for encashment of 8 days of EL/PL every year.
From India, Hyderabad
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From India, Hyderabad
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High Courts Judgments & Central Rules on leave encashment.docx
PF Contribution on Leave Encashment - Clarification by EPFO.pdf