Feeling Cheated: Can My Company Legally Refuse to Adjust Leaves During Notice Period?

Hi, I have informed my company about my decision to leave and am currently on my notice period. Our notice period here is one month. I requested if I could be relieved early, to which my boss refused and asked me to serve a notice period of 30 days. I have 11 unclaimed leaves in my account; my contract doesn't specify if they are Earned Leave (EL) or Casual Leave (CL). It just states that I will get 24 leaves in a year.

Now, on my boss's insistence, my HR, who earlier mentioned that these leaves would be adjusted in my notice period, now states that neither will these leaves be adjusted nor encashed. Leaves not being encashable is understood as these can't be EL since we get 2 leaves a month; but they have flatly refused to adjust it against 9 days in my notice period also.

Also, they have withheld my salary for the month of November, which is the period before I submitted my resignation. They are stating that even this will be given to me along with the full and final settlement.

Can an Organization Make Such Decisions?

Can an organization have the authority to make such arbitrary decisions on an employee's leave? I feel cheated and victimized; can I take the legal route?

Regards

Regarding your remaining leave balance, please note that it will not be adjusted in the notice pay. Instead, it will be encashed as part of your full and final settlement. If your employment agreement stipulates this condition, it is advisable to either serve the notice period or receive a one-month salary in lieu of notice for a smooth exit.

Regards,
[Your Name]

Leave Adjustment and Notice Pay

Generally, leave is not adjusted against notice pay. However, under the Factories Act, leave unused at the time of termination of service is encashable. It refers to statutory leave of 1 day for every 20 days worked, and it applies to factories. For shops and establishments, you need to refer to the relevant state act.

Payment of Salary During Notice Period

Payment of salary cannot be held back for the period until the end of the notice period. That is a violation of the Payment of Wages Act. Under any circumstance, the wage period must be followed. However, if you raise this matter now or try to take any legal action on this, it will affect your full and final settlement and future reference checks. So, chill, serve out your notice period, and take your money.

Simultaneous Salary and Full & Final Settlement Processing

If an employee is on a one-month notice period and is eligible to receive their current month's salary and their full and final settlement after their last working day, is it legal for the company to process both the month's salary and the F & F settlement simultaneously?

For example, if an employee resigns on the 15th of December and the notice period ends on the 14th of January, the salary would be eligible for the period from the 15th to the 31st of December and from the 1st to the 14th of January.

Please reply.

Regards,
Jayeeta

Legality of Withholding Salary During Notice Period

What you have written is what is provided in the Payment of Wages Act. Holding back the December salary until the completion of the notice period is illegal under the act and rules.