Leave encashment
Paying an employee money in place of unused leave, usually when they leave or at the end of a leave year.
Leave encashment turns a balance of days into pay. Whether and how much can be paid out depends on the leave policy and the rules that apply to your company.
Keep the balance in a ledger so that the number of days is a record and not an estimate. The value of a day is then a stated rule applied to that record.
Related
General information, not tax or legal advice.
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