Leaving Your Job? Can You Cash Out Unused Sick and Casual Leaves?

Our company provides 7 casual and 7 sick leaves each year to every employee. Sick leaves and compensatory leaves are carried forward to the next year if not availed by the employee. I want to know if a person resigns from the job, whether they will be eligible for encashment of unavailed leaves. Is there any legal obligation regarding this?

How much leave can one avail legally if a person resigns from their job and is under a one-month notice period, if they have unavailed leaves in hand?

Encashment of Earned Leaves

Earned leaves are eligible for encashment, and as per management's concern, employees are eligible for encashment on compensatory offs (coffs), earned leave (EL), and sick leave (SL).

Thank you.

Leave Encashment Conditions

Encashment of leave is often made conditional on the duration of service and the maximum limit to which it can be encashed. Please share the complete leave policy at your organization. It would then be easier for us to comment.

There is no provision for sick leave under the Factories Act. As far as the Shops and Establishments Act is concerned, it depends upon the Shops Act of your State. Check with your State Act. As far as my knowledge stretches, the Shops Acts of the States provide for encashment of annual leave/earned leave/privilege leave but not sick leave. Thus, it leaves the question to the company's policy. If your company's policy does not provide for encashment of sick leave, you cannot claim it.

Regards,
B. Saikumar
Mumbai