Can My Former Employer Deny Payment for 13 Days of Unused Paid Leave?

I left the company in the month of March 2016. The company management has denied giving me payment for my pending PL, which is for 13 days. Do they have the authority to do so?

Dear Member,

You must have approached the company to find out the reason for the denial of encashment of EL in the F&F settlement of dues. If they are not responding, and you are eligible to receive this payment, then approach the area labor office for their intervention.

With Regards,

R N KHOLA
Skylark Associates, Gurgaon

Encashment of leave is applicable only in certain cases and under certain acts. Therefore, we need to first have details of your previous company. Specifically, we require information on the location, type of organization, and the act under which it falls.

Have you served your complete notice period? If not, then the company has the right to adjust your notice period with PL.

Not only the balance of leave but also the leave for the current year has to be considered, on a prorated basis, of course.

There is no provision in any law applicable to India that requires the employer to encash or provide leave of the current year to an employee who is leaving the organization.

Saswat, you do not have knowledge, don't misguide people. Check the Shops Act and Factories Act. In both acts, provisions are clear.

Shrikant,

I keep reading both of those acts all the time because my work requires it. If you think the provisions are there, please quote them with sections. I would be more than happy to update my knowledge.

Immediate Resignation and Pending PL Encashment Issue

The management has asked me to leave after 2 days of my resignation. I have given them a 30-day notice period in my resignation, but they didn't accept it; they just told me to leave on the 2nd day. I even have the resignation acceptance email. Now, they are denying to give me my pending PL encashment, which they provide to all former employees. When my HR mentioned that this is not in the policy, the management threatened to give me a termination and withhold my experience letter. Can you please help me understand if the management has the authority to do this?

Saswat, an employee is entitled to leave until his or her last day of work on a pro-rata basis. This amount of leave should be added to the previous balance, if any, and leave wages should be paid accordingly.

Shrikant, please show me the section and the act that supports your contention.