leave encashment


Dear all

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.

pl. reply

Thanks
Prashant

 
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no.. according to the employment act the employer has to pay the encashment. he doesnt have any right to make policy. it is an enacted law. from valbooj
 
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Dear valbooj thanks for reply Prashant
 
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Dear Valbooj, Can you please attached the soft copy of employement act with its sections, it will be more helpful to support the discuss with Mgmt

Total likes : 1 times

 
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welcome..
 
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Advocate

Thanx Valbooj, for the valuable information.
 
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Sir 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. Suresh
 
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n/a

Leave Encashment Rules
 
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Hi Valbooj, 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..
 
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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.
 
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