Question

Explain the concept of encashment of leave.

Answer 1

Sick leave, casual leave, and earned leave are the types of leave available to employees throughout their employment. Sick leave and casual leave are not transferable to the subsequent year. Earned leave may be earned and carried over to subsequent years if employees do not utilize any accrued time while remaining eligible.

The following are the situations under which an employee can avail leave encashment:

1. During the continuation of service.
2. At the time of retirement, superannuation, or resignation.