The employees must have a minimum leave balance of 180 days post encashment.
Securities and Exchange Board of India (SEBI) will now allow its employees to encash ordinary leaves annually, and not once in two years as was permitted till now.
However, the employees should have a minimum leave balance of 180 days after encashment. The ordinary leave can be accumulated up to a maximum of 300 days.
SEBI said in a notification, “Where an employee has to his credit 286 days or more of ordinary leaves, the further credit of 15 days ordinary leave shall be done at the beginning of each half year (on April 1 or October, 1) to the employee’s additional ordinary leave account and the ordinary leaves availed during the six-month period thereafter, ending on September 30 or March, 31 shall be deducted from such account.”
This will be applicable provided ordinary leaves sanctioned are for less than 15 days. The balance will be credited to the ordinary leave account subject to the ceiling of 300 days at the close of that half year.
Earlier, an employee was permitted to encash ordinary leaves once in two years for a minimum of 10 days and maximum of 30 days, provided at the time of encashment, the person needed to avail such holiday for at least 10 days and also had to his credit a balance of leaves which was not less than the leave so encashed.