Navigating Resignation: What Happens to My Leave Balance During the Notice Period?

I am an employee of a private bank for the last 3.6 years. I have approximately 60 Privilege Leaves (P.L) credited to my leave account. I want to resign from my job. However, as per our bank policy, an employee should serve a 90-day notice period, and the P.L cannot be encashed. Therefore, I request your guidance on the following: If I resign from my job, will I have to serve a notice period of 90 days? And if I serve the 90-day notice period, what will happen to my Privilege Leaves (P.L)?

Notice Period and Privilege Leave (PL)

Serving a notice period and Privilege Leave (PL) are two different concepts. PL cannot be adjusted within the notice period. If you do not serve your notice period, there will be a notice pay adjustment from your full and final settlement.

PL encashment depends on the HR policy of your bank. If your policy states that it will not be encashed, then it will not be.

Regards,
Shivi
AM-HR

I truly agree with Ms. Shivi. PL encashment depends on company policy, and PL cannot be adjusted during the notice period. If you do not serve your notice period, then the adjustment will be made in the Full and Final settlement accordingly.

Regards,
Prashant
AM - HR

I agree with the views of other friends. Adjustment of PL will vary from company to company depending on their policy. PL encashment calculation is based on Basic, whereas the shortfall of notice pay will be calculated on the full salary. There are a lot of interpretations on this issue. Please clarify the issue with your HR before submitting your resignation.

Regards,
K RANGA RAJU

I strongly disagree with the views expressed above. As per the Shop and Establishment Act, an employee should be eligible for a minimum of 15 days of Earned Leave and 12 days of Medical Leave & Casual Leave. Medical Leave can be availed at any time, but the employee needs to submit the treatment record or proof to claim Medical Leave. A maximum of three times the earned leave can be accumulated by the employee (15 x 3 = 45 days). Unavailed earned leave will be carried forward to the next year. At the time of separation, the employer is bound to pay the unavailed Paid Leave settlement in the employee's full & final.

Employers can make policies and provide better facilities exceeding government norms but have no right to curtail the benefits and statutory compliance by formulating their policies.

Mr. Suman has all the right to get paid at least 45 days of paid leave.

It is calculated as Basic Salary + DA / 30 x Number of Days Encashable.

Regards,
Sreehariprasad.N
Manager HR
Delhi Super Specialty Hospital, New Delhi
[Phone Number Removed For Privacy Reasons]

Company Leave Policies and Legal Compliance

Every company has its own policy, but they can't deny the act when they are creating their policy. They should outline all the acts and then prepare the leave policy. Paid leave cannot be adjusted in the full and final settlement.

Thanks,

Regards,
Binal Kapadia
Manager HR
Actgen Pharma
Panoli (Gujarat)
[Phone Number Removed For Privacy Reasons]

Notice Period and Privilege Leave Adjustment

Notice period may or may not be adjusted with PL balance depending on the Exit/Leave policy of the organization. However, as per the Shop and Establishment Act, the accumulated balance leave unavailed by the employee needs to be cleared at the time of separation. This means it should be included in the full and final dues settlement. Please go through the Act for clarification.

Regards,
Sreehariprasad.N
Manager HR
DHLI Super Specialty Hospital, New Delhi

Yes, it's true, but employees cannot use 30 days of PL for adjusting the notice period. It is also true that every company will follow their policy, but they must also consider the relevant Act.

Thanks,

Regards

Notice Period and Earned Leave Adjustment

If the notice period of an employee, as per the terms and conditions of the appointment, is one month and their exit policy states that unavailed Earned Leave (EL) can be adjusted against the notice period, an employee can mention in their resignation that their unavailed EL of 30 days' pay should be counted against their notice period. Even in government service, when a person retires or leaves, they are allowed to encash or be relieved early if they opt for that.

I only wish to update your knowledge as you are interested in sharing it with others.

Warm Regards,

Sreehariprasad.N
Manager HR

Our organization is planning to introduce an encashment policy. Our company falls under the Shop and Establishment Act. Please guide me.

I am employed with SBI and have already served notice for resignation and am presently on the notice period. I have 80 days of PL to my credit. Could anyone guide me on whether I can encash my balance PL upon resignation.

Regards,

Gopan Menon