HR Glossary

What is Leave Encashment?

The practice of paying employees a cash equivalent for unused leave days instead of requiring them to take time off, typically applied to annual or earned leave balances at year-end or upon separation from the company.

Why it matters in hiring

Leave Encashment comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with L

• Lateral Hiring
• Leadership Development Program
• Learning Management System (LMS)
• Learning Pathway
• Life Insurance
• Living Wage
• Lohnsteuer - Wage Tax (Germany)
• LWF - Labour Welfare Fund

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.