PBS KUMAR (HR - PROFESSIONAL) 08 November 2012

Encashment of earned leaves / pls

Dear Experts, Our company (Factory) is having a leave policy, in that the Earned Leave accumlation is 60 days more than that will be encashed ever year. Now the management has changed saying that there is no law for enchashment of leaves ever year. Pleas kindly confirm it weather rule is there for encashment of Earned Leaves during the course of employment ? Regards,

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2 Replies

M.S.R.Murty ( Manager (Admn)) 14 November 2012

Dear Kumar,

There is no specific rule to encash every year. But it depends up on the policy of Management. So many Companies reimbursing every year.

Kumar Doab (FIN) 14 November 2012

Mr. Murthy has given valuable advice. Kindly follow it.

It is felt that If the policy has been arrived at by negotiation/settlement/understanding with union, by standing orders, it shall not be appropriate to withdraw it without issuing proper notice and following the process. Companies allow to encash earned leave and avoid absenteeism. The management may be looking at to reduce the financial burden. As per role function you may give your HR advice.