Adjustment of Earned leave against the notice period, encashment of leave (if any), recovery towards notice period, etc. shall be computed with reference to last working day at the end of the notice period applicable to an individual employee. For example, for an employee who resigns on March 14 and is required to give one month notice, the notice period expires on the 13th of April (at close of working hours). Accordingly, all computations shall be with reference to 13th of April.
No ML or CL is adjustable against notice period. Notice period is for smoothly handing over of all charges and to complete or asign tasks given to an individual.
Arun K mishra
Let me explain your query with a practical illustration.
Supose an employee resigns in your Company and the Management accepts his resignation. The notice period is one month.
He takes 2 days CL which was granted before his resignation was accepted for urgent personal reasons. Now, the employee genuinely falls sick and takes ML for 12 days and joins after been declared fit. Now my question is can you legally exclude his CL and ML from his Notice Period? The answer is no, since authorised leave is included in the Period of Service.
I have given this example because there is no bar in adjusting leaves against notice period. It is a very narrow and negative approach to adjust only PL. At least I personally feel that the Notice period should be adjusted as:
1) First against CL
2) Next against ML
3) Reminder against EL.
This sequence is followed to protect the financial interest of the Employee, which I feel the employee is entitled to since he is serving his notice period.
I advocate this principle because I have seen people taking advantage by taking SL and the Management has been left with no other option once the employee produces a medical certificate.
Going strictly by law of the land, leaves are not permissible during notice period.
Having said that, we in HR need to adopt a very flexible approach towards employees who are leaving as they are our brand ambassadors and advertisements. Send them off with a good taste. Send them off with a bad taste and you should expect some very acidic comments.
As a policy I have always passed on the benfit to the employee as long as there is no loss to the company. Since EL/PL are taxable, if some of these are adjusted, the employee stands to benefit. However, if the employee wants to avail leave and work an extra day to complete the exact number of days, so be it.
I have resigned from organization on 11 month of my joining date. I am serving a notice period of 2 months.
I am told by HR that PL is application only after 12 months of service but since I have put up my papers before 12 months I am not entitled for PL encashment. I have checked the company employee handbook for any such clause but couldnt find. Please advice what is correct and give me any reference to law that is applicable in this case
Thanks & Regards