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Query related to leaves
Human Resources » Labour & Employee Relations

Chrm Message From: ramadhish.i Total Posts: 4 Join Date: 30/08/2016
Rank: Beginner Post Date: 30/08/2016 10:04:09 Points: 20 Location: India
Dear All,
I have just started my career in HR in the service industry. In our industry, Mumbai Shops & Establishment Act is applicable. I have some queries regarding the leave policy as per that act. Can anybody suggest me what should I do in the below mentioned situations:
1) Can an employee encash the last year’s PL in the current year? If yes, then can these PLs be encashed at anytime during the year or in the month of January only?
2) If the employee has already encashed the PLs and he resigns after that, then will he be asked for the refund of the same?
Thanks in advance.


Chrm Message From: debora Total Posts: 108 Join Date: 30/08/2016  
Rank: Leader Post Date: 20/12/2019 09:26:15 Points: 540 Location: India


  • Earned leaves can be encashed by the employee in the next year, once the leaves have been carried forward to the next year. the quantum of leave to be encashed in each case is not more than 50% of the Earned Leave at credit or 30 days earned leave whichever is less.
  • If an employee is ready to get released on acceptance of his resignation, in such cases encashment is received on the date of release of such employee provided he/she serves his/her notice period, if any.
  • The trainees can encash unveiled leave with full stipend at the time of completion of their training. In calculating the period of Leave with full stipend, all holidays and off-days whether occurring during or end of the period shall be excluded.