Leave Policy - Clarification

Can we have a clause stating “ All the leaves ( casual, sick, earned) stands cancelled once the employee resigns from his/her current position “ ? Went through quite a few threads/discussions in CiteHR, but couldn’t find the information I was looking for.

Dear Shravanti,
It is always clear that any employee leave stands cancelled when he/she resigns from the company, however the encashed or unavailed earned/privileged/annual leave has to be compensated according to their basic pay upto the date of resignation.
As per the govt. rules it is clear that any employee leave the organisation he won't be entitled for any leave. No need to put any clause.
Any more doubts let me know.
Thanks

Thanks Giri!
We have casual , sick and earned leaves at our organisation and we do not have an encashment policy! We have been cancelling all the leaves once the employee resigns and any leaves he/she avails is resulting in Loss of Pay. I was little apprehensive of what we have been practicing and hence this post.
I understand from your reply that the unavailed leaves (whatever category they fall under) should be compensated to the employee. And since the Govt. says so the employee has a right to proceed legally ?

Dear Shravanti,
Only the earned leave has got the right for compensation and all other leave gets cancelled automatically and not authorise for compensation. Do not confuse urself with other leave taking into consideration.

Dear shravanti
How a company can incorporate a clause forfeiting EL, when it is opposed to Factories Act 1948 or Shops Act like the Bombay Shops Act which permit an employee to encash unavailed to the extent of the limits permitted under the respective laws. If the leave policy is under the Contarct of service(not falling under the sphere of law), probably such stipulation may be possible.
B.Saikumar
HR & Labour Law Advisor
Mumbai
09930532927.