Leave Adjustment Against Notice Period - CiteHR
Saswatabanerjee
Partner - Risk Management
Pragnaa HR Compliance Services
Pragnaa Shree Venture India Pvt. Ltd
Mrfsuresh
Sr.manager-human Resources
Lakshmi87*
Agm - Hro, Compensation & Benefit Mgt,
Reachanie
It Recruiter
+4 Others

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A company’s policy says that Notice Period is for 30 days. Suppose an employee has submitted his Resignation letter on 1st June stating that he wants to work till 30th June. As per the Company policy, an employee can avail 40 leaves (PL=20, SL=10 & CL=10) in a calendar year. He has not availed any leave. So, he will be accumulating 40/2 = 20 leaves till 30th June. He wants to work till 10th June & wants to adjust 20 accumulate leaves against Notice Period. Is it possible?
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Adjustment of Leave with Notice period is possible only if Management agrees. As such there is no Law for Leave adjustment with Notice period.
An employee has to serve full notice and clear his all dues before getting NOC from the company. Also, a company can deduct a days salary or "as applicable" if in case an employee take a eave during Notice period.
Hi,
Notice period can be adjusted only with the PL, and not with SL / CL.
Once the employee is decided to submit the resignation, the leave balance will be taken into account up to the date of resignation only. Hence, in this case, employee has to serve the notice period up to 22nd June, if he has the PL balance of 8 days (up to May month).
Adjusting leaves during notice period is totally managements decision.
But most of the companies don't allow an employee to take a leave during notice period for smooth handover.
In such a case if an employee takes a leave during notice period, then his notice period gets extended proportionately.
Also, Notice period can be adjusted only against PL and not with SL/CL.
Most of the companies don't allow taking leaves during the notice period as has been already mentioned by the other members.
Adjustment of the paid leaves is done in the full and final settlement of the employee. Either the employee gets the payment for those days or it just gets adjusted against any amount the employee owes to the company.
With the consensus from the management the notice period can always be made a little shorter depending on the criticality of the position of the employee.
Hope this helps
Nisha
It is possible to adjust accumulated leave against notice period if the company\'s leave policy allows for accumulation of leaves. even under such a circumstance, Management will not encourage employees to do so if the employees in question are hardworking and efficient.
Most companies will also credit the leave to the employees account at the end of the year. So if he is leaving halfway in the year there will be no leave available to his credit.
If the person is working under factories act, the rules in the standing orders will apply
Hi
with regard to granting of leave during the notice period is purly at the discrition of the management as it is meant to a smooth handingover and KT, out going employee do not have say. Employer can releive him even before the end of the notice period if he wish to do so.
Encashment of accrued and unavailed earned leave and for the part of current year is possible thru FF for all permanent full time employees.
CL and SL do not form part of encashment as our members already said and agree with their views.
Dear Friend, The Practice is very simple and it is already explained by "Pragnaa HR Compliances" in their recommendations above. Please be very firm that only PL can be adjusted if at all the employee wants to adjust leave against Notice Period. SL & CL if any before relieving date generally lapses as unavailed leave. Instead, clever employees go on leave and produce SL Leave incl. Medical Certificate if reqd. and in practice nothing can be done just like that. Reg. CL employee availing CL and then reporting for duty in the next 1-2 Days with the reason for leave as "Very Personal/Urgent/Domestic Reasons" etc. again nothing can be done with.

It is better to understand that only PL can be adjusted against notice period ELSE if the management does not wish to adjust, they may deny the leave for grant, expect the employee to continue till the end of the notice period and during settlement they will pay the PL money incl. the current year eligibility as part of settlement.

For practical purposes, understand that management can only extend the relieving period by citing reasons that handing over not done properly, if at all the employee fails to appear for job during the notice period but vanishes with proper permission. Legally, only Loss of Pay can be marked at Max. and period of relieving extended. That is all. No MGT can just like that terminate an employee just like that just for the reason during this notice period which is always understood wrongly by many.

Above all, granting leave PL though it is PL is management's priority ; They cannot deny - but they can postpone granting leave on the dates reqd which we be aware off.

Regards,
please tell me if my management allows adjustment of leaves in notice period.Then will it be paid or not.For example if one employee had to serve a notice period of 30 days .He served 19 days and 11 annual leaves adjusted in the balanced notice period.11 days salary will be paid or not.How final settlement will be tackled
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