Encashment of Annual Leave

Krishnamurthi Navuda (Querist) 08 July 2009 This query is : Resolved
Hi All,

I would like to request for your expert advice / comment on the below questions on encashment of annual leave.

1. Can a company on its own discretion define an Annual Leave Policy or are there any governing laws for defining the annual leave for which companies need to adhere to?

2. Can a company on its own discretion define the Annual Leave Encashment Policy or are there any governing laws for which companies need to adhere to?

I am posting these queries on the applicability for IT organizations.

Thanks in advance.
Navuda.

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H. S. Thukral (Expert) 08 July 2009
As far as right to annual leave is concerned, one is entitiled to annual leave as per Shops and Establishments Act which is a state Act That is the minimum which an employee would get. More than that is discreationary. There is no law on leave encahsment. But when an employee leaves the job or his services are terminated, he is entitiled to cash equivalent to number of days of unavailed holidays

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