Hr &administration
K Ranga Raju
Senior Manager-hr
Deputy Manager
+3 Others

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I am an employee of a Private bank since last 3.6 years, I have approx 60 Privielege leaves (P.L)credit to my leave account, I want to resign from my job, But as per our bank policy an employee should serve 90 days notice period, and neither the P.L are encashed.
Therefore, request you to kindly suggest If I resign from my job Will I have to serve a notice period of 90 days, And if I serve a notice period of 90 days then what will happen to my (P.L) ?

Serving Notice Period & PL are 2 different concepts. PL cannot be adjusted with Notice period.
If you do not serve your Notice period, there will be notice pay adjustment from your Full and Final settlement.
PL encashment depends on HR Policy of your bank. If your policy says that it will not be encashed, then it will be so.

I truly agree with Ms. Shivi,
PL encashment depends on company policy, and PL can not be adjusted in the notice period. If u do not serve your notice period then the adjustment will be done in Full and Final settlement accordingly.

I Agree with the views of other friends.
Adjustment of PL will vary from company to company depends on their policy.
PL encashment calculation is on Basic whereas shortfall of notice pay will be calculated on full salary.
There are lot of interpretations in this issue.
Pl clarify the issue with your HR before submitting resignation.

I strongly disagree with the views of all above, as per Shop and Establishment act an employee should be elgible for minimum 15 days Earned Leave and 12 Days Medical Leave & Casual Leave. Medical Leave can be availed at any time but the employee need to submit the treatment record or proof to claim Medical Leave. Maximum three times of the earned leave can be accumulated by the employee ( 15X 3 = 45 Days) . Unawailed earned leave will be carried forward to the next year. At the time of seperation employer is bound to pay the unavailed Paid leave settlement in the employees full & final.

Employers can make policies and provide better facilities exceeding govt norms, but have no right to curtail the benifits and statuary compliance by formating their own policies.

Mr.Suman has all the right to get paid atleast 45 days of paid leave.

It is calculated as Basic Salary + DA/30 X No of Days Encashable.

Thank You,


Manager HR

dhli Super Specialty Hospital, New Delhi


Every company has their own policy but they cant denied the act. When they are making their own policy. They should point out all the act and then the prepared the Leave policy. PL can not be adjust in Full & Final Settlement.
Binal Kapadia
Manager HR
Actgen Pharma
Panoli (Gujarat)

Notice period may or may not be adjusted with PL balance depending on the Exit/Leave policy of the oRganisation.But as per the Shop and Establishment Act, the accumulated balance leave unavailed by the Employee need to be cleared at the time of seperation, that means in Full & Final dues settlement.
Please go through the Act for clarification.
Manager HR
dhli Super Specialty Hospital, New Delhi

Yes its true but the employees can not use 30 days PL for the adjustment of Notice period.
Also true that every company will go their policy but also with the reference of Act.
Ms. Binal Kapadia

If the Notice period of Employee as per the terms and conditions of Appointment is One Month ans if their exit policy says unavailed Earned Leave can be adjusted against Notice period, an employee can write can mention in his resignation that my unavailed EL of 30 days pay please be counted against my Notice Period.Even in Goverment service,when a person retires or leaves he is allowed to encash or get releaved early if he is opting for that.
I only wish to update your knowledge as you are interested ion sharing it with others.
Warm Regards,
Manager HR

Our organisation planning to introduce encashment policy. our company falls under Shop and establishment act. please guide me.

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