- The Leave Encashment allows an employee to apply for monetary amount or equivalent payment from the company in exchange of the accumulated leaves present in the account.
- The Leave Encashment does not hold for all leave types and the admin needs to enable a particular leave type for encashment to make Leave Encashment active for the employees.
- While adding a leave type, the admin needs to click on Yes to Allow encashment under the Encashment Rule section.
- If the Encashment is enabled, then the parameters will be visible under the Encashment Rule which includes-
- The minimum accumulated leave balance you need to have in order to encash leave
- The maximum number of instances leave can be encashed in a year
- The minimum number of days that can be encashed at a time
- The maximum number of days that can be encashed at a time