Long-Time Employee Struggles with Leave Encashment After Company Restructuring – How Would You Handle It?

Hello, I am working in a company since July 2001. Before 2005, my company was under proprietorship, and in 2005, it was converted into a private limited company without giving full and final settlements to the existing employees. Earlier, it used to provide 12 leaves in a year, but after it became a private limited company, they started giving 15 leaves. However, we were never given any encashment for them.

Thanks, Dinesh

Leave encashment is given upon resigning services, or the leave is carried forward if working still up to a maximum of two years of accumulations.

It depends on the company policy. The company can either encash 50% every year or carry forward and encash at the time of resignation or retirement.

Rgds,
Jitender

Dear Dhanesh,

Then approach the law-enforcing agency.

With Regards,
R.N. Khola

Dear Friends,

It totally depends on the company's policy regarding what they want for the settlement of leave encashments. However, as per labor laws, leave encashment should be payable at retirement or upon separation from the job.

Thanks and regards,
Bhagwan Tolani
Senior HR
TM Group
Email: bhagwan_007@in.com

If the leave encashment provision is in the standing order of the company, you may complain to the zonal labour inspector/commissioner with proof of the salary received not including the amount of your leave encashment.

Regards,
Jawahar
9769769990

Hi,

In many companies, the procedure is that the employee is allowed to accumulate his leave up to 30 days. If his services are urgent and essential, the employer may allow such employees to accumulate even more days of leave.

In some companies, as per their existing policy, leave is disbursed with wages for the accumulated leave in the month of January.

Actually, leave is encashed only upon resignation, retirement, or the death of an employee. If an employee does not use his leave, he can accumulate up to 30 days as per the Factories Act. After reaching 30 days of accumulation, he or she has to utilize their leave; otherwise, it will lapse.

It is at the employer's discretion whether or not to encash leave while the employee is in service.

Mohan Rao Manager HR

Dear Dinesh,

It depends on the company policy. Organization to organization policies are different.

Regards,
Charvaka Reddy

Hi,

As per the Shop and Establishment Act, every employee is eligible for earned leave. The unused leave at the time of parting of service should be encashed, and cash paid to the departing employee.

K. Viswanathan