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Leave Encashment

Definition

A policy that allows employees to receive monetary compensation in lieu of unused paid leaves, either during service or at exit.

Context & Importance

Improves employee morale by valuing time-off and encourages proper leave planning.

Use Cases

• Full & final settlement.
• Annual or festival payouts for unused leave.

Related Concepts

Paid Leave, Leave Policy, Full and Final Settlement.

TankhaPay Relevance

Auto-calculates encashment amount and includes it in payroll during exits or special payout cycles.