Earned Leaves Encashment - Leave Encashment

Dear All,
My previous company is not giving me the Earned Leaves encashment standing at the credit of my account. They are saying that there is not any rules for leave encashment the company following. My question is whether I can enforce the Company to pay the same. Is there any legal rules are there in any law regarding the same.????
Waiting for your answer. Thanks

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

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

Dear Mr. Sharma,

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.

In case of superannuation, the maximum limit/portion of earned leave which is allowed to be accumulated at any point of time is allowed to be encashed subject to a maximum of 300 days. Deptt. 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 DPE.

However in case other than superannuation, the employers do not give the benefit of encashment of EL on the basis of simple principle that had you been in service, you would avail leave. You can claim encashment only if the leave requested has been denied in writing and you have sufficient proof to establish your claim.

If the amount is considerable and you have proof, you can take shelter of law, otherwise forget it and utilize your energy and resources in some productive activity.

AK Jain