Encashment Of PL After Resignation - CiteHR
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I have been working with a large organisation. A few months back the company revised their leave policy.
According to the new policy no further PLs will be given to employees and the total PLs accumulated till date have been locked.
Now the employee can neither take these leaves nor can he encash them.
These accumulated leaves will be encashed in four installments ie. 25% leaves will be encashed at the end of the current financial year and other three installments in the coming three years; 25% in each year.
Now if an employee resigns from his job, his accumulated PLs will not be encashed and stands lapsed.
Please let me what law says , if someone resigns, is he entitled to get cash for the PLs he has earned in his total past work with the organisation?
Can any organisation do such thing, like not giving the benifit of past work to the employee?
What is the remedy for this?
Ravi Bharati

As per Section 79 of Factories Act 1948, it is enumerated that :-
Provided that the total number of days of leave that may be carried forward to a succeeding year shall not exceed thirty in the case of an adult or forty in the case of a child.
However you can get your PL adjusted against notie period if you do not want to raise a dispute. What ever policy a company makes it can not deny to the dues of an employee.

As per any law PL can never be lapsed as it is an earned leave, it has to be encashed at the time of leaving of service irrespective of any internal company policy. Reagrds, Harshad
dear as per the policy of encashment decided by your company that they will encash 25% this year and rest in three instalments,it is alright as per law.
but the leave is locked and no body will get leave here after is illegal and same movement you have to encash all leave at the time of leaving organisation.it is clearly mentioned in factories act.
j s malik

Thanks for that fast response.
Actually after working for around 5 years I am going for PGPEx at one of the premier institute of the country. I have a total of around 200 PLs which I had accumulated for the purpose of getting some cash to releave the financial burden during my study.
I talked to my HR executive and he says that I can get only 25% of leave encashment and that too if I continue with the organisation untill the salary of April'09 is processed.
If I leave early I will get nothing.
The classes for the PGP coures will start in the first week of April and to join that I will have to submit my job releaving letter to the institure.
So I want encashment of all 200 PLs.
What should be the approach now??
Please advise.

I have newly joined a small software company in Mumbai which is registered under the shops and establishment act. Here only 1.5 leaves are acuumulated per month per employee i. e. 18 leaves per year. Leaves are accumulated up to no limit and encashable only after resignation. For resigned emploees 15days notice is a mandate and no leaves are granted in notice period even if the employee has accumulated leaves. If the employee is absent during notice period double days are deducted fron his encashable leave balance for each days of absence. In case of absconding employees only 15days salary are deducted. As a result employees are preferring to leave without notice. Management is not ready to change the policy as most absconding cases happens after taking the salary. Is this system a logical one? Is this as per the law?
Dear All,
This is to inform you that every company would formulate their company policy as per the Act. There can be miner difference in Act & Company policy not major.
Here we are taking about Leave.....
So, As per Law Every employee is entitle for SL/CL/PL (Subject to the appoinment terms & conditions). SL/CL will be lapsed every year but PL cann't lapsed & no company can make any such type of policy. After Resignation a employee can claim his/her PL encashment. Company has to pay the balance PL encashment with full & final settelment.

Hi Jitender,
I work in an IT company. Here we have 9 CL/SL (SL and CL are clubbed) and 15 PLs. Unused PLs get transferred to the next year upto a maximum of 25. But there is no encashment at the time the employee leave the organisation. The remaining PLs get lapsed.
And as far as i know, there are many companies practicing this kind of leave policy. Is it is upto the company to decide about to encashment of leaves? or is there a law that says that PLs has to be encashable.

it has been mentined in forum several times that IT companies donot follow the law of land.iof you are doing something which is illegal,it doesnot means it is legal.we in the forum can suggest u only legal ,whatever your company is doing is seprate.it is not company to decide about leave rules and leave polices it is the act whcih says about it however we can make it liberal as per our policy but we can not make it rigid.
j s malik

There is no SL & CL in our company. Only yearly 18 PLs…..management don’t feel it necessary to provide SL & CL and employees are also quite habituated in the existing system. Is it supported by law?

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