Labour Law & Hr Consultant
Compliance Manager

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The employee gave resignation on 23rd July and as per company rule, the notice period is of 3 months hence his last date is 20th sept 18 and employee is having some 17 Annual Leave (not paid at the time of exit) which he wanted to adjust against his notice period because of which his late date is 03rd Sept. So is he eligible to get payment up to 20th or up to 03rd Sept.
Salary to be paid upto last Physical Working Day only. Notice Period recovery is different subject matter so need to deal separately.
In the employment letter there is always a clause on notice period in which it is clearly stated that the employee/employer have to give a notice of certain period [1,2 or 3 months] or amount in lieu of the period, in some cases.
Notice period is basically to cover the employer from having to suffer unexpected loss to his business and also to see that the person who is going to take over the position should be properly trained and handed over the responsibilities. while on the employee point of view it has to be seen that he/she gets enough notice to look out for another job during the period.
In the above case the employee is availing the clause 'amount in lieu of notice period[though only a part] and so he will be getting salary up to his last working day. All his leaves will be exhausted against the notice period due.
Thanks and Regards

If the employee avails of earned leave after sanction or surrenders the unavailed leave for cash benefit, naturally the employer has to pay him leave salary. Same logic applies to the situation described in the post. The only difference is that the accumulated leave is adjusted against the corresponding no of the days of the notice period unserved. Therefore, as rightly observed by the above friends, he would only be entitled to salary upto and inclusive of the actual date of his relief if his request is accepted by the management.
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