Leaving Your Job? What to Do When You Can't Use or Cash Out Earned Leave

Dear All,

I am seeking your suggestions regarding the encashment of earned leave. I am in the process of leaving my current company, and according to our personnel manager, I am not permitted to utilize my earned leave during the notice period. Consequently, my earned leave will expire, and in line with company policy, it will not be possible to encash it either.

I would appreciate clarification on the following points:
1. Is the encashment of earned leave subject to company rules and policies?
2. Is there any potential recourse through legal avenues?

Thank you in advance to all those who respond.

Rajneesh

Dear R Kumar,

As per the Factory Act, an employee is eligible for earned leave (EL). Upon leaving the service, an employee is entitled to encashment of unavailed earned leave, subject to a maximum of 30 days as per Section 79 of the Factories Act 1948. The Personnel Manager cannot refuse to encash the unavailed earned leave.

S.K. Chadha
chadha_sanjay29@rediffmail.com

Hi,

I need details on how PL is calculated if an employee joins in the month of April and completes 6 months. How many PL days will she get until December?

Regards,
Sapna