Leave credit consideration after resignation - applicable for workers and not management staff?

Dear all,

I just resigned from the manager position in a manufacturing industry within the management staff cadre. My leave credit stands at 32 days upon resignation, 92 days in January 2017, and 88 days in January 2016. Our company has stated that they do not consider waiving or encashing these credits, mentioning that this policy only applies to workers and not management staff as we do not fall under the Trade Union Act. I suspect that my company operates under the Factories Act and the Shops & Establishments Act in Tamil Nadu.

Am I eligible for any benefits in this situation?

Thank you.

Hi,

As your grade is manager and you come under management cadre, you will not be covered by the Shops Act or the Factories Act as a workman. Encashment of leave will be at the company's discretionary power if not mentioned in the company's standing orders or MSI laid down by the management for managers in the company.

Thank you.

If you come under the Factories Act, then this Act does not differentiate between a workman and a manager. You are eligible as per the act only. Your company is providing wrong excuses to you.

Sir, thank you for replying. My company is one of the oldest amalgamation groups in Chennai, and this has been an ongoing battle for years for every exiting employee. Additionally, if I inquire about how to determine whether to waive off the notice period or opt for encashment, and how it will be calculated – whether in gross or basic pay. The company calculates all in gross for recovery, and if a situation arises where they need to provide any benefits to employees, they calculate based on the basic pay.

Also, there is an unclaimed vehicle maintenance for the last 4 years, which is as per a letter for Rs. 10,000/- per annum. However, while claiming, they say it is Rs. 2,000 for a two-wheeler and Rs. 10,000 for a four-wheeler. If by fuel reimbursement, it is Rs. 2,000 per month, and maintenance comes to Rs. 34,000 a year as per eligibility, but they only give Rs. 26,000. Whereas, they give Rs. 45,000 by conveyance. Last year, I got only close to Rs. 70,000 through reimbursement, whereas if by conveyance, I would have ended up with Rs. 135,000. The difference is Rs. 65,000, and our company says they take only Rs. 6,000. How should I go about it?

The company calculates all gross recovery in full, and if a stage arises where they need to provide anything to employees, they calculate it based on the basic amount. This practice is illegal.

Dear Guest,

All employees, irrespective of their designation or nature of work performed, fall under the purview of both The Factories Act and the applicable Shops & Commercial Establishments Act regarding eligibility for leave. However, for the carry-forward of leave, you are also eligible as provided under the Acts.

The very fact that the company has permitted you to carry forward leave entitles you to encashment post resignation or relieving from service. Fixed gross salary components are taken into consideration for the payment of leave encashment amount.

You mentioned that your esteemed company has a history of denying leave encashment. Despite this, you have carried forward the leaves beyond the statutory limit. Additionally, you have not provided details regarding your annual entitlement, carry-forward details, etc.

Nevertheless, you can use the balance of leave in your credit for any shortfall in the notice period or alternatively apply for leave encashment. Either the Factories Act or the Shops & Commercial Establishments Act is applicable in your case. Accordingly, you can take up the matter with the concerned authority.

Thank you.

Dear all,

I really thank everyone for the responses regarding my post, in which my boss or HR are not willing to listen after 15 years of total dedicated service. In reality, I am a former sportsman who served at the state and zone levels in my profession. You can verify this by conducting a Google search by typing "A Tale of Untapped Talent." I initially joined as a sportsman in 2002, which did not have any notice period initially, and have been serving in an administrative role for the past 12 years.

I have already shared my full history of resignation on citehr, which you can find in a post titled "Regarding Management Staff Resigning in Public Limited Company." If someone could go through that, it would make our discussion easier. I mention my sportsman identity to convey my genuineness, as it is concerning to reveal my real identity here, fearing that HR may scrutinize it and create further trouble. More than the money I have lost due to company issues, my main concern is to safeguard my integrity with a clean exit, so I can spend time with my mother, not for pursuing another job or career. I am seeking a detailed discussion with someone to assess whether my points of contention are valid.

Thank you.

Dear Mr. Srinath,

More than denying leave encashment every year, the denial to consider waiving off the balance notice period or pay upon exit is quite distressing. Furthermore, they claim that these policies apply to workers only and not to management staff.

My leave credits from 2008 up until now, as of every January, are as follows: 41, 42, 51, 51, 51, 50, 60.5, 75.5, 88.5, and 92 in January 2017, and 35 in October 2017. My gross income is 54k with a basic salary of 12k. I have served 36 days without pay, equating to 72 days considering the 2-day calculation. This leaves me with 18 days, along with unclaimed previous balances amounting to nearly 70,000 for medical and conveyance.

Despite all this, they insist that I owe them 250 Rs. My daily wage for calculation purposes is 1802. Do you believe I should compromise with their calculations?

Thank you.