Leave Encashment on Resignation Application Guide
When an employee resigns from their job, they are often entitled to a leave encashment, which is a payment for the accumulated leaves they have not taken. To receive this payment, the employee needs to submit an application for leave encashment on resignation to their employer. In this guide, we will walk you through the process of writing a leave encashment application on resignation.
Understanding Leave Encashment
Leave encashment is a benefit provided by employers to their employees, allowing them to convert their unused leaves into a cash equivalent. This benefit is usually provided as per the company’s leave policy and is paid out when the employee resigns, retires, or in some cases, when they are on a sabbatical.
Eligibility for Leave Encashment
Not all employees are eligible for leave encashment. The eligibility criteria vary from company to company and are usually outlined in the employment contract or the company’s leave policy. Generally, employees who have completed a certain period of service, usually one year, are eligible for leave encashment.
How to Write an Application for Leave Encashment on Resignation
Writing an application for leave encashment on resignation requires careful consideration of the company’s leave policy and the employee’s accumulated leaves. Here are some steps to follow:
- Check the company’s leave policy: Before writing the application, ensure you understand the company’s leave policy, including the eligibility criteria, the number of leaves that can be encashed, and the process for applying for leave encashment.
- Calculate accumulated leaves: Calculate the number of accumulated leaves that can be encashed. This information can be obtained from the employee’s leave record or by contacting the HR department.
- Draft the application: Draft a formal application for leave encashment on resignation, including the employee’s name, designation, date of resignation, and the number of accumulated leaves.
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Submit the application: Submit the application to the HR department or the designated authority, along with any supporting documents, such as the leave record or resignation letter.
You can find more sample letters and templates on [Sample Letter R](https://www.sampleletterr.com).
Sample Application for Leave Encashment on Resignation
Here is a sample application for leave encashment on resignation:
[Employee’s Name]
[Employee’s Designation]
[Date]
[Employer’s Name]
[Employer’s Designation]
Subject: Application for Leave Encashment on Resignation
Dear [Employer’s Name],
I am writing to request leave encashment for my accumulated leaves as per our company’s leave policy. My resignation letter is attached, and I have calculated my accumulated leaves as [number] days.
I request that you process my leave encashment and pay me the equivalent amount as per our company’s leave policy.
Thank you for your attention to this matter.
Sincerely,
[Employee’s Signature]
[Employee’s Name]
Tips for Writing an Effective Application for Leave Encashment on Resignation
Here are some tips for writing an effective application for leave encashment on resignation:
- Be clear and concise: Ensure that the application is clear, concise, and easy to understand.
- Provide supporting documents: Attach supporting documents, such as the leave record or resignation letter, to verify the employee’s accumulated leaves and resignation date.
- Follow company procedures: Follow the company’s procedures for applying for leave encashment, including submitting the application to the designated authority.
Leave Encashment Calculation
The leave encashment calculation varies from company to company and is usually outlined in the company’s leave policy. Generally, the calculation is based on the employee’s basic salary and the number of accumulated leaves.
| Basic Salary | Accumulated Leaves | Leave Encashment |
|---|---|---|
| $5000 | 20 days | $2000 |
Taxation on Leave Encashment
Leave encashment is taxable in some countries, and the tax exemption limit varies. In India, for example, the leave encashment received during employment is fully taxable, while the leave encashment received at the time of resignation or retirement is exempt up to a certain limit.
For more information on taxation, you can visit the Income Tax Department website.
Conclusion
In conclusion, writing an application for leave encashment on resignation requires careful consideration of the company’s leave policy and the employee’s accumulated leaves. By following the steps outlined in this guide, employees can ensure that they receive the payment they are entitled to.
Frequently Asked Questions
What is leave encashment?
Leave encashment is a benefit provided by employers to their employees, allowing them to convert their unused leaves into a cash equivalent.
Who is eligible for leave encashment?
Eligibility criteria for leave encashment vary from company to company and are usually outlined in the employment contract or the company’s leave policy.
How do I write an application for leave encashment on resignation?
To write an application for leave encashment on resignation, follow the steps outlined in this guide, including checking the company’s leave policy, calculating accumulated leaves, drafting the application, and submitting it to the designated authority.
Is leave encashment taxable?
Leave encashment is taxable in some countries, and the tax exemption limit varies. You can visit the Income Tax Department website for more information on taxation.
