Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Anonymous
Dear All,
I am working with MNC for last 13 years and now the company is downsizing due to unfavorable market conditions.
Would like to understand if employer has to en cash all un-availed medical, annual and casual leaves in case of downsizing/retrenchment.
Your expert comments in this regard would be highly appreciated.
Thanks

From India, Delhi
I think that the questioner requires answer only for the compensation in lieu of unavailed leave at the credit of the employees likely to be retrenched due to downsizing of the establishment. There are different kinds of leave such as casual leave, sick leave or medical leave, annual leave with wages or earned leave or privilege leave and the like depending upon the type of the establishment and nature of the work of the employees. Not all kinds of leave can be carried forward over a period of years and accumulated to a certain extent in the leave a/c of the employees.Some leaves like C.L, sick leave, if unavailed, get lapsed at the end of the calendar year. Therefore, only those leaves which can be accumulated over the years as per the employment law applicable to the establishment or as per the contract of employment need to be considered for encashment on the termination of employment like resignation, retirement, retrenchment etc. If the management has the magnanimity to permit encashment of all kinds of unavailed leave at the time of retrenchment, well, there is no legal bar other than from the income tax perspective!
From India, Salem
This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™