Leave During Notice Period: Considerations and Implications
Normally, companies do not allow employees to take leaves during the notice period. However, in exceptional cases, a company should grant leave because being in the notice period does not mean leave requests should be automatically denied. If the intention is to join another company and use up accrued leave from the current company to the maximum extent possible before being relieved, issues may arise.
For instance, if you submit your resignation today, i.e., on the 18th of June, and start at a new company on the 20th of June, taking leave from the previous company from the 20th onwards, you will need to return to your previous company on the 17th of July to complete all necessary relieving formalities and obtain your relieving cum service certificate. This certificate will state that you worked in the organization from your date of joining until the 17th of July 2011. In your profile, your current establishment's date of joining will be the 20th of June, while your most recent employment will be from your date of joining until the 17th of July 2011, resulting in a one-month service overlap.
This overlapping service period can cause issues when transferring your Provident Fund (PF) as contributions at the previous company will be calculated until the 17th of July. Your name will only appear in the previous company's Form 10 (return of employees leaving the company) for August 2011, while it will be listed in the new company's Form 5 for July 2011.
Therefore, I do not recommend taking leaves to fulfill the notice period in a new company unless your current company allows you to offset the notice period by using available leaves for encashment or other means.
Regards,
Madhu.T.K