Struggling to Get My Leave Encashment: How Can I Recover My Dues from My Former Employer?

Dear Sir, I was employed with Kailash Shipping Services Pvt Ltd, New Delhi branch from July 2008 until September 2013 (five years) after the company entered into a merger agreement with Apollo Figge Pvt Ltd, a subsidiary of Apollo Tyres Ltd. When the branch was set up, our management insisted on getting the branch registered with the labor department under the Delhi Shop & Establishment Act 1954, which was duly agreed upon, and a certificate to this effect was obtained from the concerned authorities.

When I resigned from my position, I applied to my organization for encashment of my paid leave entitlement as per the provisions laid under the Delhi Shop & Establishment Act 1954 and requested the organization to release the encashment amount for 60 days of accumulated leave. Despite my several reminders and requests, my employer has neither responded to any of my emails nor released my due funds. Upon a telephonic inquiry, I was informed that the company does not have any such policy in place, which was never communicated to me in advance.

Kindly advise me on how I can recover my dues from my employer.

I look forward to your valued guidance.

Leave Entitlement Under the Delhi Shop & Establishment Act

As per Section 22 of the Delhi Shop & Establishment Act, any employee who has completed one year of continuous service shall be entitled to 15 days of privileged leave (PL) and 12 days of casual/sick leave (CL/SL). The maximum accumulation for PL shall be three times the total leave, which means 45 days. In the event of an employee being discharged or quitting employment, unavailed accumulated PL shall be encashed at the rate of full wages to the employee.

Please send a polite email referring to the above provision. It does not depend on any policy or internal rules/guidelines of the company. It is a mandatory requirement of the law to which every employee is entitled, and every establishment must comply duly.

If action is not taken, you can approach labor authorities or file a complaint before the Metropolitan Magistrate for the violation of the above provision. As per the provisions of the said Act, the Metropolitan Magistrate is empowered to take cognizance of the same upon a complaint received from the aggrieved person under the Act.