This is not governed by any labor law, but required rules can be made in-house.
If a company has a leave rule where employees cannot avail earned leave during the notice period, then the company should provide ample opportunity for employees to utilize or cash out their earned leaves.
The adjustment of leave against the notice period completely depends on the company, whether it is a private limited, limited, or any other firm, as it is not governed by any labor law.
There is no law for or against taking leaves during the notice period. Companies are arbitrarily making such draconian rules without any consideration for the human factor. Since every employee signs the appointment letter acknowledging to abide by the company rules, the employee gets covered. One has to make the choice.
The clause of notice period (of 1 to 3 months) is to regulate the termination or retrenchment of the employee by the establishment, as envisaged in the ID Act. The general condition of notice is to serve the notice period or else to pay the equivalent amount of the notice period. The earned leave is nothing but legally you can cash out against the notice period. If someone is going against this, it means nothing but harassment.
It is as per the company's leave policy. Use it first. But in normal cases, PL will not be entertained during the notice period. You will be on LWP if you take any leave and settle in full and final certificate.
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