Leave encashment can be done in two scenarios
1. While still in employment - this article details how leave encashment request can be received from employees or updated on their behalf. Leave encashment done through this process will be paid in monthly payroll and will be taxed. Refer to the article on Payroll process - step 2 for more details on how leave encashment is paid during monthly payroll
2. When employee is resigning / retiring - leave encashment can be paid during full and final by the payroll manager based on recommendations given by HR Manager in the separation process. Leave encashment paid during full and final is tax free.

As an HR Manager you have two options -
1. You can release the process of leave encashment allowing the employees to submit their leave encashment details
2. You can update the leave encashment details on behalf of the employees without releasing the process

In the first table you would see the list of leave encashment you would have released in past, you can "Hide" any record for which the end date has gone in past. Hidden records can be recalled by using "Recall Hidden Records" option.

In leave setup for each leave type (excluding per incidence leaves) you can specify if the leave is available for encashment. Leaves which have been closed in the current year are available for encashment but leave closed in previous years are not available.

1. Releasing leave encashment

Click on "Open Leave Encashment" button

Steps to be followed
1. Input the End date, Start date is automatically selected as today's date. End date cannot be in next month
2. From the list of leave select the leaves which you want to be allowed to be encashed and also enter the maximum value, if this value is left blank then employees can encash the maximum value as per the leave setup
3. You can select the set of employees to which the request for encashment will go
- if you want to select manually use the List option
- if you want to select based on some criteria use the Eligibility Criteria option
An alert will go to all the employees who are eligible for leaves which are selected for encashment.

Once the encashment process is active the End Date can be extended by entering a new date and clicking on Submit – a revised alert will go to the employees.

Viewing submitted requests

As the leave encashment requests are submitted the status can be viewed by the HR Manager and the list of employees who have not submitted can be downloaded using the "Download List" button.

2. Updating leave encashment without releasing it to employees
If you do not want to release leave encashment process to employees but want to update the number of days on their behalf you can click on "Update Leave Encashment" button and a form will open as shown below.

You can select by employee name and give him leave encashment across multiple leaves, or you can select a leave and give leave encashment for multiple employees.

You can either manually update the number of days you want to encash or you can also use the bulk upload process to upload.

Note
1. If Payroll is activated then submitted leave encashment are automatically included in the subsequent payroll runs if the leave encashment parameter is activated in Payroll but only after the leave encashment period closes
2. Refer to the document "Leave encashment payout" for more details on how leave encashment is managed in Payroll
3. Refer to the document on "Claiming leave encashments" for more details on how employees can claim leave encashments