Leave Encashment During Resignation: Can I Challenge My Company's Policy?

I work for a global engineering major's software development unit in India. I resigned and asked about leave encashment. The 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

Types of Leave and Encashment Policies

Which type of leave are you talking about? If it is Earned Leave (EL) or Privilege Leave (PL), then it has to be encashed at the time of separation. For other types of leave, the company may have its own policy.

Please refer to 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.

Leave Encashment Policies

Privilege Leave or Earned Leave is encashable at the time of separation, such as retirement or resignation. 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.

Understanding Leave Encashment Rules in Tamil Nadu

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