Can I Legally Enforce My Previous Company to Pay for Earned Leave Encashment?

My previous company is not giving me the Earned Leaves encashment standing at the credit of my account. They are saying that there are no rules for leave encashment that the company follows. My question is whether I can enforce the company to pay the same. Are there any legal rules in any law regarding the same?

Waiting for your answer. Thanks.

Regards,

Earned leave entitlement and allowing this EL for encashment are different aspects. Companies can have their own rules about encashment, but as far as the entitlement of earned leave is concerned, the company should follow the enactments.

Earned Leave Encashment Under the Factory Act

Under the Factory Act, earned leave (1 day for every 20 days worked) will be encashable only upon termination of employment. Furthermore, only the leave appearing in the credit at that time will be encashable. There is no rule requiring the company to carry forward leave except when leave requested was denied due to work pressure or any other reason.

Regards

Your query is incomplete. You have not mentioned how you have separated from your previous employer. Is it due to resignation, removal from service, termination, dismissal, voluntary retirement, or superannuation?

Superannuation and Leave Encashment

In the case of superannuation, the maximum limit/portion of earned leave allowed to be accumulated at any point in time is permitted to be encashed, subject to a maximum of 300 days. The Department of Public Enterprises (DPE) has issued specific guidelines on this issue. Companies may frame their own leave rules, keeping in view the broad parameters defined by the DPE.

Other Cases of Separation

However, in cases other than superannuation, employers do not provide the benefit of encashment of earned leave based on the simple principle that if you were in service, you would avail leave. Encashment can only be claimed if the requested leave has been denied in writing, and you have sufficient proof to support your claim.

If the amount is substantial and you have proof, you can seek legal recourse; otherwise, it is advisable to move on and redirect your energy and resources towards more productive activities.

Regards,
AK Jain