Earned leave encashment

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Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2013 Please explain me the meaning of earned leave encashment

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 February 2013 Suppose Sunday is a holiday. An employee is not supposed to attend office. Still he is called to perform important tasks. To compensate him, leave encashment is given by way of salary for that "Sunday".
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In case of earned leave encashment , thus, it can be said that-though the employee was entitled to take leave as per Rules-still he has preferred to do work on such leave days.
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CA Kishore Tallam

CA Kishore Tallam (Expert)
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08 February 2013 Every entity provides certain number of leaves to employee for the services received fro the employee. They are (generally):
1. Casual leave
2. Sick leave
3. Earned leave.
All the said leaves are paid leaves i.e. eventhough the employee does not perform services, even then he will get paid.

1st two are self explanatory. The employee only can utilise these leaves and cannot encash them.

In case of earned leave, the employee is given an option either to go on leave or to work for the said days and encash them depending on the policy of the entity.

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