Privilege leave - Is leave encashment compulsory as per Rajasthan state shop act rules or company has the right of not paying? - CiteHR
Umakanthan53
Labour Law & Hr Consultant
NAGARAJ N K
Hr Professional

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I resigned from company and was relieved after one month by HR. I have received full and final calculation wherein the company has not provided me the PL encashment. (30 days balance). I asked HR about the same and they are saying that we don't have leave encashment policy.
In appointment letter they have not mentioned anything, whether they will give or not give.
Now I want to know that is leave encashment compulsory as per Rajasthan state shop act rules or company has the right of not paying. ( I work with a nbfc at a city in Rajasthan having Ho at Mumbai).
Pls throw some light on the rule whether I can challenge my company on this or not.
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Hi,
It doesn't mean that you are not eligible for the encashment since its not mentioned in the appointment order. Apart from the appointment order you will be having different policies governing employees at your company. I suggest you to go through the leave policy of your organization.
regards,
Nagaraj.N.K
Bangalore
9449783810
Dear friend,
As per clause 11 of the explanation 2 to section 14 of the Rajasthan Shops and Commercial Establishments Act, 1958, in case of unilateral exit of employment by the employee, the employee shall be paid the wages for the leave with wages in his credit before the expiry of the next pay day. The amount payable shall be calculated in this regard as provided for under section 15 of the Act.
In case of failure or refusal by the employer, the employee can file a claim u/s 15 of the Payment of Wages Act,1936 as the mode of recovery so suggested in section 17 of the RS&CE Act,1958.
No leave policy of an organization can run counter to the leave provisions of an Act applicable to such organization.
Bring it to the notice of the Company before initiating legal action.
Dear Sir,
Thanks for the insight on Rajasthan shop and establishment act. I have mailed to the company's HR but till now I have not got any revert from them. Last evening they replied that they will revert soon. But didn't mentioned that they will pay or not. They haven't mentioned anything timeline to revert also.
Please suggest how long should I wait for their reply. I believe they are not going to pay me. Should I send the legal notice.
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