I need to know, can employer refuse to pay a employee for encashment of his accomolated leave for the previous year.
what i want to know is that as per the compnay policy can employer make the policy that employees privious years leave will not be encashed in the current year. employee should keep the minimum 1 years leave bal. in his account.
Our company is having PF Trust. We are paying only 8.33% to EPF office for Pension .
Now we have paid Leave encashment to a left employee. Some one told me that 12% of leave encashment amount to be paid to EPF authrities for pension fund. Is it true. Kindly clarify.
Is there any particular law for leave encashment.. B'coz wat i heard was it varies from company to company according to their leave policy..some companies dont encash and carry fwd the leaves.. for example in my company we carry forward the remaining leaves to the next year.. I would appreciate if u can clear my doubt..
It depends on the Company Policy. In some Companies they allow acccumalation upto 42 days and ask balance to be consumed. This 42 days is payable at the time of resignation or retirement whichever is earlier. I believe the PL encashment is tax free. But some companies deducted tax and expect the employee to file returns and claim refund. I do not know if this is the best practice.