Managing Leave Credits in Employees Notice Period for Full and Final Settlement

Hi all,

I have come across a hypothetical situation where employees are required to serve a notice period of 2-3 months. In such cases, I have a question: during the full and final settlement for the employee, where even leaves are counted and credited in the form of basic salary, what happens during the 3-month notice period? Will leaves be credited for that period as well? Please share your comments on this.

Thanks,
Vijay Paidipalli

Serving the notice period is as important as the regular working period. Leaves should be credited based on eligibility, in my opinion.

Regards,

R. Ponraj

I agree with Mr. Ponraj. An employee is eligible for leave as long as he/she works in the organization; it doesn't matter if it's during the notice period or regular working hours.

Thanks

Hi Vijay,

Leaves have to be given to the employee as per their eligibility until they are with the company up to their last date of working. If leave credits to be given fall in the notice period of the employee, then the company can decide to include them in the settlement, as most employees tend to avail their leaves while serving the notice period, which can hinder the handover process.

However, leave settlement must be provided.

Regards,
Smita

Dear Vijay Padipalli,

Leave credit has to be given to the employee until his last working day with you, which means leave calculation is permitted for the notice period as well. The leave standing to the credit of the employee until his date of leaving is paid along with the full and final settlement. However, if the employee avails leave during the notice period, then depending on the need, the employer may insist on extending the notice period to the extent the employee has availed leave.

Trust I have answered your query.

Regards, M.V. Kannan