Navigating Notice Period: Can I Use or Encash My Earned Leave While Resigning?

Hi friends, I am working in the NBFC sector as a manager. I have some health issues due to travel, so I am planning to find a job that involves less travel. I have informed my employer about this, and I have resigned on 1st Aug '14 (as per the appointment letter, the notice period is 60 days). Now, my questions are:

1) I have 35 days of earned leave, but my employer has mentioned that "taking leave during the notice period will extend the working days."

2) My employer has also stated that I cannot encash my earned leave (I have a balance of 35 days), and it will not be considered as part of the required notice period.

3) Salary will not be credited during the notice period; it will only be credited upon settlement.

4) The settlement period will be between 45 to 75 days from the last working day.

Please provide clarification on the above points. Thank you!

If the employment of a worker who is entitled to leave under subsection (1) or subsection (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 quits his employment on or before the next payday.

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.

Regards

Confusion Regarding Leave and Notice Period

It's confusing that you have 35 days of leave, yet you can't encash it or take the leave. The situation seems quite messed up. Was this policy mentioned in your appointment letter, or is your manager imposing it now? I suggest you review your appointment letter again. If it's not mentioned there, you should approach a senior authority for advice on how to proceed. In my opinion, you have the right to enjoy your 35 days either through payment or by taking the leave.

Employee Rights During Notice Period

Employees have the right to take leave during the notice period. Please refer to the case Ghanshyam Vs Delhi Metro Rail Corporation, 2007. The Delhi High Court has confirmed this.

Talk to your HR. In the NBFC sector, FNF settlements take 15-45 days as they have to calculate trimester incentives and other allowances. It's a normal process.

Salary payout is not done during the notice period. You can take leave, but it will be considered as Leave Without Pay (LWP).

For your query about 35 EL, then talk to HR. Comp off and SL are not encashed; only PL gets encashed.

Stay in touch with your senior managers and HR. Keep all conversations backed up as proof.

Good luck!