27/09/2026
📅 A quiet but important change under India's new Labour Codes: leave encashment rules have shifted, and many HR teams haven't updated their policies yet.
Here's what's confirmed (effective 21 Nov 2025, under the OSH&WC Code — per the Ministry of Labour & Employment's official FAQ):
✅ Only 30 days of leave can be carried forward to the next calendar year
♾️ BUT — if an employee applied for leave and it was refused by the employer, that refused leave can be carried forward with NO limit
💰 There is no prescribed maximum cap on how much leave can be encashed
📄 Encashment is due at year-end (for leave beyond 30 days, on the employee's demand) or at the time of separation from service
This is a real compliance shift — if your leave policy still assumes an old carry-forward cap or a fixed encashment ceiling, it's time to review it.
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