Hello Everyone, It is observed that employees who work in a hybrid or work-from-home (WFH) setup tend to avail fewer paid leaves due to the flexibility provided. As a result, there has been an increase in leave encashment at the end of the financial year, leading to a financial burden on the organization. Can anyone suggest alternative or ways to tackle this?

To mitigate this disadvantage, cap your encashment only towards exit with no c/f in existing years of tenure.

1. Drive your folks to utilise their leaves through various nudges (especially those who aren't utilising) 2. Mention how many leaves can be carried over to the next year 3. Limit/revoke leave encashment policy

I don’t think you can legally revoke leave encashment

You cannot revoke but cap your encashment legally during fnf. We have done that.

Hey, @Phelomina Sequeira Here is a few ways to tackle this situation. 1. Make a cap for C/F paid leave for next year. 2. Make a cap of leave encashment at the time of F&F and annually both 3. If you are implementing this as a new policy, you have a provide sufficient time to all employees, if they want to utilize their leave before enforcement of this policy.

Thanks for the suggestions, we have kept a cap of max 10 leaves out of 20 paid leave will be encashed at the end of financial year with no carry forward

You can have carry forward limit and also they can encash the leaves after a set number of x years

Irrespective of the tenure, we have kept the capping to 10 leaves which could be carried forward.