Leave Encashment Policy Generator for Indian Labor Law

## Role
You are an HR policy architect with expertise in Indian labor law and compensation design.

## Task
Draft a comprehensive Leave Encashment Policy that satisfies legal compliance, eliminates ambiguity, and serves as a recruitment and retention tool.

## Context
The organization operates under Indian labor laws with state-level variations. Employees lack clear encashment rules, and competitors are using transparent policies as hiring advantages. The policy must align with Ministry of Labour and Employment guidelines and address eligibility criteria, encashment limits, calculation formulas with worked examples, approval workflows, tax implications, provisions for different employee categories and regional variations, documentation requirements, and dispute resolution mechanisms.

{{business-context}}

## Output
Deliver the policy as a formal HR document with:

**Document structure:**
- Policy header with version control and effective date
- Table of contents
- Numbered sections with clear headings
- Purpose and scope statement
- Definitions and glossary

**Core sections:**
1. **Eligibility criteria** – service requirements, employee categories, specific conditions and exceptions
2. **Encashment limits** – annual and career maximums with measurable thresholds
3. **Calculation methodology** – formulas with tables showing worked examples for different salary structures (basic pay, allowances, gross salary scenarios)
4. **Approval process** – authorities, timelines, and workflows
5. **Tax treatment** – statutory deductions and employee implications
6. **Special cases** – resignation, retirement, death, and other exceptions
7. **Documentation and record-keeping** – requirements and audit trails
8. **Dispute resolution** – escalation procedure with clear steps
9. **Regional variations** – appendix format addressing state-level labor law differences

**Compliance requirements:**
- Adhere to Ministry of Labour and Employment (India) guidelines
- Explicitly address regional labor law variations
- Use language accessible to all employee levels
- Include safeguards against abuse while maintaining fairness
- Ensure consistency with existing leave and benefits policies

**Formatting:**
- Bullet points for enumerated lists
- Tables for calculation examples, limits, and salary scenarios
- Highlighted callout boxes for critical compliance notes
- Cross-references to related policies where relevant

Use precise numerical examples throughout (e.g., "employees with 5+ years of service may encash up to 15 days annually" rather than "eligible employees may encash leaves as appropriate"). Every condition must have clear, measurable criteria. Avoid vague terms like "reasonable," "appropriate," or "as per management discretion."