Notice Period Dilemma: How Many Leave Days Are Fair for Resigning Employees?

Hi,

Could someone tell me what should be the leave policy for a person who has already tendered his or her resignation and is serving the notice period? How many days can he or she take off during the notice period?

Thanks in advance.

Regards,
Jay

It depends on the rules framed under the leave policy. However, an employee is deemed to be a full-fledged employee until he/she gets relieved from the responsibilities. All the leave rules are applicable to him/her, even if he/she resigns from the employment and awaits the relievement.

But tell me one thing, if anyone has a 30 leave balance, will he be eligible to take 25 leaves? According to you, he should get 25 leaves. Then what about the 1-month notice period?

User input:

But tell me one thing, if anyone has a 30 leave balance, will they be eligible to take 25 leaves? According to you, should they get 25 leaves, then what about the one-month notice period?

Whatever leave balance he/she has, the reporting manager shall sanction. Then only he/she can proceed on leave. If not sanctioned, it would be LOP. However, the remaining leaves will be encashed/lapsed, depending on the leave policy, in the full and final settlement of the account.

Thank you for your prompt response. However, my question is, what about the one-month notice period that is required? Suppose the boss approves or sanctions leave, what should HR do next since the employee is not attending the office for 25 days out of a 30-day notice period? If someone is on leave for 20-25 days within a 30-day notice period, can we consider that leave period as part of the notice period?

I have one more query. When an employee leaves an organization, do we need to encash their balance of casual leave (CL)? If so, how do we calculate the same?

In such a case, do LOP for the days he has not attended duties or for the days his leave is not sanctioned, i.e., do LOP for 25 days. Yes, you will have to treat that leave period/LOP period as notice period.

For the second query, you will have to encash balance leaves only as per the leave policy of the company. Normally, no company will offer encashment of CL. Only EL/PL are supposed to be encashed in most companies.

The calculation is Basic Pay or Gross Pay / 26 * Number of leaves to be encashed.

Again, it is your company's policy whether to offer leave encashment on Basic or Gross Pay.

Regards,

vsure

No, my question was, if his boss has already sanctioned/approved his 25 days' leave, in that case, what is HR supposed to do? There might be a case where if you have a good relationship with your boss, he might grant your leave application for 25 days, but what does the HR policy say in normal practices.

In such a case, do LOP for the days he has not attended duties or for the days his leave is not sanctioned, i.e., do LOP for 25 days. Yes, you will have to treat that leave period/LOP period as a notice period.

For the second query, you will have to encash balance leaves only as per the leave policy of the company. Normally, no company will offer encashment of CL. Only EL/PL are supposed to be encashed in most companies.

The calculation is Basic Pay or Gross Pay / 26 * Number of leaves to be encashed.

Again, it is your company's policy whether to offer leave encashment on Basic or Gross Pay.

Regards,
vsure

My dear,

You will have to go by the Leave Policy, even if the boss approves. Even if he sanctions 25 days of leave during the notice period or in the normal course, you will have to record the leaves according to the actual eligibility and do LOP for the remaining days.

Hope you have clarity now.

I'm sorry to bother you. As I had mentioned already, he already has a leave balance of 30 and has received approval from the boss for 25 days. So, in a normal course, we cannot treat it as LOP. However, during the notice period, how should we proceed? As you are saying he is eligible to receive all the benefits until he leaves the organization, in that case, how can we justify the one-month notice period? In this case, if he goes on leave for 25 days (approved), he is serving only a 5-day notice period. Hope you understand my question now.

My dear,

Still, I repeat... You will have to go by the Leave Policy, even if the boss approves. Even if he sanctions 25 days of leave during the notice period or in the normal course, you will have to record the leaves as per the actual eligibility and do LOP for the remaining days. How has the boss sanctioned it? CL - SL - EL or what leave has he sanctioned? Go by the leave rules. First of all, what are your leave rules? The rules must have been clearly written there. What is the minimum or maximum leave availment?

Hope you have clarity now.

Let's say the company has a leave policy where an employee can't take more than 3 EL in one go, 1 CL in one go, and 1 PL in one go. If any employee wants to take 20 leaves in one go, that will be covered under the PL. For 20 leaves, the employee has to submit their leave application one month in advance with prior approval.

Hope this clarifies.

Regards,

Arti Chopra