Leave encashment policy
umesh mishra
(Querist) 12 September 2012
This query is : Resolved
Hi, I am working as Account Officer in an advertising agency since last five and half years. Our company have 25 PL every year, which is carried forward till 60 days if not utilized and remaining get lapsed over and above 60 days. The said leave will be encashed at the time of full and final settlement. I have in my account 45 PL as on 31st March 2012. Recently company management decided to scrap the leave encashment policy and said as company is running into loss, as cost cutting measure they have scrapped the leave encashment policy. We have to utilise the leave or it will get lapsed. Also they said, the said leave will not be adjusted against the notice period, so in case of leaving organisation, we have to give compulsory 30 days notice period. In private company we hardly get leave more than 10-15 days. So hardly there is any chance of utilising the all paid leave accrued in my account. Hence I want to know is there any law which makes the Leave Encashment mandotory for the employer and we will get the amount added to our salary at the time of full and final settlement?
Anirudh
(Expert) 12 September 2012
There is no such law to compel the employer to allow encashment of the leave.
