RK (service) 27 March 2023

Treatment of unutilized earned leave

Dear All,

Kindly suggest the law around unutilized accumulated Earned Leave. The act around it . I have specifically two questions

1. Is there any law / act which state that after accumulating a certain number of earned leave the further accumulation will be forfeited . e.g in case an employee has accumulated 48 earned leave and don't utilize them then any surplus above that

What are the ground or act where EL can be encashed. a) Surplus of any leave above 48 at the end of each financial year

2. Are such acts applicable to IT industry

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6 Replies

RAKESH ISHI 27 March 2023

In India, the rules related to earned leave are generally governed by the respective service rules applicable to employees. For example, the Central Civil Services (Leave) Rules, 1972, govern the leave entitlements of central government employees.

As per Rule 26 of the Central Civil Services (Leave) Rules, 1972, an employee can accumulate a maximum of 300 days of earned leave (including the leave credited on average pay for the past service). If an employee fails to utilize the earned leave within the prescribed time, the excess earned leave will be forfeited.

RK (service) 27 March 2023

Thank you for your response

Can you please elaborate the rules for company particularly in IT sector.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 27 March 2023

The accumulated or unused leaves get automatically encashed if they exceed the limit or when the employee leaves the organisation. The encashment procedure depends on the company leave policy in India.