Paid Leave Dilemma in Final Settlements: Are We Obligated to Pay for Unused Leave?

Paid Leave in Full and Final Settlement

What can be done if we don't want to pay paid leave in the full and final (FNF) settlement? The problem we are facing is that employees are leaving within six months, during which leaves get allocated within three months. Is there any statutory obligation to pay paid leaves in FNF? Please suggest any alternate solution.

Regards,
Rashmi

As far as the Factories Act is concerned, nothing is specified about the encashment of leave. However, it is a moral obligation to pay for the accrued leave to the employee leaving the organization.

Regards,
V. Sri

I think they are eligible to get PL/EL after serving 90 days, with 1 day for every 20 working days. They should be encashed at the time of FnF settlement.

Pon