Can I Legally Use My Earned Leaves to Shorten My Notice Period in India?

I am working with an Engineering MNC registered in Mumbai. I have resigned and am currently serving a notice period of three months. I have 54 Earned Leaves, 30 Sick Leaves, and 7 Casual Leaves. I have been informed by my superiors that I cannot surrender my Earned Leaves to reduce the notice period, and I also cannot avail the Earned Leave during this period. In our company, Earned Leave cannot be compensated by cash; instead, it can be carried forward for two years.

Please guide me on whether there is any government policy for Earned Leave compensation. Can I take any legal recourse if I am not allowed to surrender my Earned Leaves or Sick Leaves against the Notice Period and also not allowed to avail the Earned Leave during the notice period?

Earned Leave Adjustment During Notice Period

If your terms with the management are good, normally, the management will adjust the earned leave (EL) in the notice period, or they can encash the balance in EL at the time of final settlement.

Understanding the Purpose of a Notice Period

The notice period is intended to ensure a smooth transition and to find a replacement for the outgoing employee. Surrendering Earned Leave (EL) or Privilege Leave (PL) in lieu of the notice period does not serve any purpose for employers. However, you will receive encashment for the accumulated EL/PL along with your Full and Final (F&F) settlement. There is no government rule for converting your EL/PL against the notice period.

Regards,
Pon