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Give major heading and subheading of"Encashment of employees earned leave payable on retirement "?
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Give major heading and subheading of"Encashment of employees earned le...
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Give major heading and subheading of"Encashment of employees earned le...
**Encashment of Employees Earned Leave Payable on Retirement**

**Introduction:**
Encashment of employees' earned leave payable on retirement refers to the process of converting accumulated leave days of an employee into monetary compensation upon their retirement. This allows employees to receive financial benefits for the unused leave days they have earned during their employment tenure.

**Benefits of Encashment of Earned Leave:**
- Financial Security: Encashment of earned leave provides employees with additional financial security upon retirement, as they receive a lump sum payment for their unused leave days.
- Incentive to Utilize Leave: Employees may be motivated to utilize their earned leave days before retirement, ensuring they take necessary breaks and maintain work-life balance.
- Encourages Continuous Service: The prospect of encashment encourages employees to serve the organization for a longer duration, as the accumulated leave can be monetarily valuable upon retirement.

**Procedure for Encashment of Earned Leave:**
1. Eligibility Criteria: Employees need to meet certain criteria, such as a minimum length of service or specific retirement age, to be eligible for encashment of earned leave.
2. Application Process: Employees should submit a formal application for encashing their earned leave to the concerned authority, usually the human resources department.
3. Verification and Approval: The application is verified by the HR department to ensure the employee meets the eligibility criteria. Once approved, the encashment request is forwarded for further processing.
4. Calculation of Monetary Compensation: The amount of monetary compensation is calculated based on the employee's basic salary and the number of earned leave days to be encashed.
5. Tax Deductions: Appropriate tax deductions are made from the encashment amount as per the prevailing tax laws and regulations.
6. Payment Disbursement: The encashment amount, after tax deductions, is disbursed to the retiring employee through their preferred mode of payment, such as direct bank transfer or check.

**Legal and Organizational Policies:**
- Employment Contracts: The terms and conditions related to earned leave encashment should be clearly mentioned in the employment contracts to avoid any ambiguity or disputes.
- Applicable Laws: Organizations need to adhere to the applicable labor laws and regulations regarding earned leave encashment, including tax implications and limits on encashment.
- Company Policies: Internal policies should outline the process, eligibility criteria, and other relevant details related to the encashment of earned leave on retirement.

**Conclusion:**
Encashment of employees' earned leave payable on retirement serves as a valuable financial benefit, providing employees with a sense of security and recognition for their dedicated service. By following the appropriate procedures and adhering to legal and organizational policies, organizations can ensure a smooth and fair process for encashing earned leave upon retirement.
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Read the following text and answer the questions given below:Zeba Ltd., an e-commerce company operating for the past 10 years, is a company which strongly believes in motivating its employees by offering them various incentives. It is so because they are very focused on their goals and objectives and want their people to improve their performance because there is a lot of competition in the market and Zeba Ltd. has the vision to become the market leader in the next 5 years.Aman, who is an alumnus of IIM Ahmedabad and has done his specialization in Marketing, is a marketing employee employed with the company for the last 3 years has often been rewarded with a pay hike for his growing performance.Samay, who is a Chartered Accountant and has been working in the company for the last 7 years, is from the finance department and has been allotted some shares by the management in lieu of various incentives payable in cash for his continuous efforts towards ensuring timely availability of funds and their effective utilization at all times.Aadvika, who recently graduated from FMS Delhi, is working in the Human Resources department of the company and joined as a contractual employee but is now on the payrolls of the company.The company also organizes annual functions to provide public appreciation to its high performers as it strongly believes in uplifting their spirits towards working for the company as well as preventing them from joining their competitors.Q. What type of incentive has been provided to Samay?

Read the following text and answer the questions given below:Zeba Ltd., an e-commerce company operating for the past 10 years, is a company which strongly believes in motivating its employees by offering them various incentives. It is so because they are very focused on their goals and objectives and want their people to improve their performance because there is a lot of competition in the market and Zeba Ltd. has the vision to become the market leader in the next 5 years.Aman, who is an alumnus of IIM Ahmedabad and has done his specialization in Marketing, is a marketing employee employed with the company for the last 3 years has often been rewarded with a pay hike for his growing performance.Samay, who is a Chartered Accountant and has been working in the company for the last 7 years, is from the finance department and has been allotted some shares by the management in lieu of various incentives payable in cash for his continuous efforts towards ensuring timely availability of funds and their effective utilization at all times.Aadvika, who recently graduated from FMS Delhi, is working in the Human Resources department of the company and joined as a contractual employee but is now on the payrolls of the company.The company also organizes annual functions to provide public appreciation to its high performers as it strongly believes in uplifting their spirits towards working for the company as well as preventing them from joining their competitors.Q. What type of incentive has been provided to Aadvika?

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Give major heading and subheading of"Encashment of employees earned leave payable on retirement "?
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Give major heading and subheading of"Encashment of employees earned leave payable on retirement "? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Give major heading and subheading of"Encashment of employees earned leave payable on retirement "? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Give major heading and subheading of"Encashment of employees earned leave payable on retirement "?.
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