Recently my company(Gurgaon Based Telecom Company) has changed the policy for earned leaves. Here is the extract from the policy.
To achieve a greater worklife balance, employees will now be encouraged to take annual leave to rejuvenate themselves and enhance their quality of life.
An employee will continue to be entitled to 25 days of Earned leaves in a calendar year, which are credited in two equal installments of 12.5 days each, in the month of January and July. Henceforth, Earned leaves, if unavailed, can be accumulated upto a maximum of 30 days. Once the maximum limit of 30 days is accumulated, 50 % of unavailed leave balance as on 31st Dec will be encashed and paid alongwith January payroll in the following year and the balance 50% of unavailed leaves will lapse.
My question is:Is it legal to lapse employees Earned Leaves?Is there any act which supports that? Can we challenge it?
To achieve a greater worklife balance, employees will now be encouraged to take annual leave to rejuvenate themselves and enhance their quality of life.
An employee will continue to be entitled to 25 days of Earned leaves in a calendar year, which are credited in two equal installments of 12.5 days each, in the month of January and July. Henceforth, Earned leaves, if unavailed, can be accumulated upto a maximum of 30 days. Once the maximum limit of 30 days is accumulated, 50 % of unavailed leave balance as on 31st Dec will be encashed and paid alongwith January payroll in the following year and the balance 50% of unavailed leaves will lapse.
My question is:Is it legal to lapse employees Earned Leaves?Is there any act which supports that? Can we challenge it?