I agree with all the above views; however, I wish to put them in a proper perspective so that one understands the reason/logic behind it rather than just following the system/procedure blindly.
Once the exit of an employee is imminent, consequent upon the acceptance of resignation, a notice period is mutually agreed upon based on the terms and conditions of the employment contract.
Purpose of the Notice Period
The purpose of the notice period is primarily to enable the employer to find a replacement and train them suitably to take up the assigned tasks. During this period, the presence of the outgoing employee is essential.
If an employee is absent during this period, for whatever period of time, it hampers this process, and thus a remedy needs to be devised for this.
In such a case, the employee's notice period may be extended, which may jeopardize the schedules, including the date of relieving, and affect both parties.
However, in case of any exigencies, there cannot be any other alternative left apart from allowing leave of absence.
Impact on Leave Balances
Another minor reason is that by that time, the leave balance positions are already communicated to Finance & Accounts, so as to expedite the Full and Final Settlement amount. HRs do not particularly enjoy sending corrigendum for these.
However, in case of any exigencies, there cannot be any other alternative left apart from allowing leave of absence. Making such absence as Leave Without Pay may again give rise to complications as the employee may claim they have sufficient leave balance.
Thus, it would not be proper or legally correct to say that an employee is not eligible for any leave during this period or leaves are not allowed or permitted.
However, since taking leave may put both the employee and employer in difficulties, it is advisable to counsel the employee accordingly and avoid granting any leave.
Warm regards.