Ordinary leave encashment permits annual conversion within prescribed limits, with distinct treatment for death, incapacity, and resignation.

Ordinary leave encashment may be permitted once in each calendar year for 10 to 20 days where the employee holds at least 180 days of ordinary leave credit. The policy may be modified to encourage minimum leave utilisation. On death or complete and permanent incapacity, cash equivalent of unavailed earned leave may be granted to the employee or legal heirs. On resignation after proper notice, half of the ordinary leave credit may be encashed, subject to a maximum of five months' ordinary leave.

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