Please allow me to engage in some technical hair-splitting here.
The Factory Act states that at the time of termination, the workman is entitled to encashment of leave in his credit. In this case, the leave is credited when he completes one year; therefore, at the time of termination, he has no leave credited to his account. Consequently, he is not eligible for encashment. Therefore, the management has full liberty to deny the same.
Eligibility for Earned Leave
Dear All, Mr. Ajith Kumar P is eligible for earned leave. The 240-day criteria are in force where a workman works the whole calendar year; otherwise, if one works at least 2/3rd of the working days, it makes him eligible for earned leave at one day's leave after every 20 days of working.
Additionally, the leaves earned in the preceding year are credited and can be availed in the succeeding year. However, in the case of full and final settlement, the management is obligated to encash the earned leaves, and any policy of the management, whether accepted by the workman or not, cannot supersede the applicable provisions of the relevant law of the land.
Regards,
P K Sharma