HR Glossary

What is Leave Encashment?

The payment of cash equivalent for unused earned leave (also called privilege leave) by Indian employers, governed by state-specific labour laws for private sector employees and Central Civil Services Rules for government employees, with distinct tax exemptions at retirement.

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.