Can My Company Legally Keep 30 EL After Resignation? Seeking Advice on EL Settlement

I resigned from an organization, and at that time, I had 70 EL. Now, the company is denying my request to encash 70 EL; instead, they are only willing to provide 40 EL. Is there any rule that allows the company to retain 30 EL?

There is a rule of accumulation of EL up to 42. Therefore, your company has given you 40 EL's encashment. They are right.

Regards

If the employment of a worker who is entitled to leave under sub-section (1) or sub-section (2), as the case may be, is terminated by the occupier before he has taken the entire leave to which he is entitled, or if, having applied for and not been granted such leave, the worker quits his employment before he has taken the leave, the occupier of the factory shall pay him the amount payable under section 80 in respect of the leave not taken. Such payment shall be made where the employment of the worker is terminated by the occupier before the expiry of the second working day after such termination and where a worker who quits his employment, on or before the next pay day.

The unavailed leave of a worker shall not be taken into consideration in computing the period of any notice required to be given before discharge or dismissal.

The respective State Shops Act provides for a maximum permissible PL accumulation, which in most cases is 2 years of leave. Hence, depending on the state you are in, 42 days may be the right limit, over and above which the leaves may lapse as per company policy. Actually, your company should not have shown 70 days of PL to your credit in the first place, which is causing this confusion. They should have lapsed any leaves beyond 42 days. In my existing company, we also have a limit of 42 PL days, which can be encashed at the time of exit.

Regards