Leave Encashment During Seperation

Hi,
I work for a global engineering major's software development unit in India.
I resigned and asked about leave encashment. Reply was that leave encashment is not possible during separation but only during retirement.
I was wondering about the legality of this stand..Can I contest this decision with my company before I leave?
thanks

Which type of Leave you are talking about if it is EL/ Pl then it has to be encashed at the time of Separation. For other leaves company may have their own policy.

Please refer the Leave Policy, the policy defines the EL encashment and Lapses etc. In general the unavailed EL/PL has to be encashed at the time of separation whether it is resignation, termination, retirement etc.

Privilege Leave or Earned Leave is encashable at the time of separation - retirement, resignation, etc. Sick Leave/Medical Leave is encashable only at the time of retirement. Normally casual leave is not encashable.
Please take up the matter with the company.

First, check the leave and encashment rules in the Tamil Nadu Shop & Establishment Act.
Most of the laws specifically provide for encashment of unused leave on resignation, termination or retirement.
You can copy that section and show it to the HR department of your company.