Leave encashment policy and enchasment policy on earned leaves


Can the community help me with leave encashment policy?
On leave encashment limits? What is mandatory and what is not?

please advise


Employee may be permitted to carry forward a maximum of 30 days leave and this may be encashed at the time of leaving the organisation.
Thank you


The company can define a leave encashment policy by considering the overall nature of work, outlook towards employee leaves, hr policies, etc. Here is one sample encashment policy, which you could refer and make one draft for your organization.
encashment_sample.pdf (91.3 KB)


Dear all,

Can you clarify - if an employee works for 6 months and resigns, whether that employee is eligible for leave encashment as per factories act ?

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Yes, He is eligible
Thank you.

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