Treatment of leave during 2020


Would like to know what approach various organisations are taking regarding employees’ leave balance build up this year following the lockdown and extended WFH facilities due to COVID. Employees have a huge unused leave balance in 2020 and while certain leave types like CL and SL could lapse at the end of the year depending on each company’s policy, leaves such as EL / PL are generally carried forward or encashed.

For instance, can we now ask employees to consume their leaves before end of the year to avoid encashment or can we change the leave rules mid-year stating that there will be no carry forward or encashment this year?

Please give your thoughts on how best to address this issue in compliance with the applicable law.

Thank you and Regards


Hi Deepa,

For the year 2020 we have announced our employees that there will be no Leave Encashment and Carry forward due to COVID and impact on business.

Since every time cannot change the policy wordings so, via mail intimated the same.

Hope this information will help you.


Hello Deepa,

WHF is not possible for all the organization , but yes in lockdown period being the logistics industry we some how managed to do it & join the office from June month after lockdown .In my organization we have 21 - Annual leaves combination of EL/SL & CL(15+6) , out of that only fixed 5 can be carry forward & treated as CL for next year . In covid we have adjusted the same in below order to remove the leave encashment for this year.
As a special case my Idea strategy was, we open the leaves for the entire year (2020) (and not quarter wise )adjust 15 leaves in the following manner in the working days , as working was not 100 % from the WFH and there was no deduction in the salary so in & out was the Win - win situation for Employer & employee .
salary calculation was 25 to 25 , so we decide to organize the same as below : we used this strategy in (March/April/May ).

Month payroll : 25th till April 25th -12 days .
Next Month 26th till 03rd May -3 days .

I can suggest you the working hours for the day for example ask for half day working - two hours in the morning and two hours in evening and adjusted the half with the leaves depending upon their working in this way they can consume their leaves and their no leaves encashment liability on the employer and after their will be no requirement of changing the leave policy in the mid year . we have used this strategy from march to May , you may select any 3 month and execute the Leave sub policy /in covid time .

All the very Best !

I hope this idea will help you !


hi @deepa.d

It’s a valid point that you have put on the table.

There are lot of companies who made changes to their leave policies during the pandemic considering the situation…

Likely: add/remove leave types - reduce the carryforwards - and make changes in the encashment.

You’re free to do all that and Law permits the same - for more info:,2.&text=This%20is%20not%20mandatory%20in%20Karnataka.

Do not forget to follow the minimum guidelines given by the government while making changes to these.


Thank you all for the valuable inputs.