Notice Period Dilemma: Can Employees Use Paid Leave Before They Exit?

I want to know if a person is serving a notice period, can we still give them any paid leaves? What about the leaves they have as their balance of paid leave?

Dear Dhiral,

If you do not allow employees to utilize or adjust their paid leave during their notice period, then you need to encash the amount for the employee against the balance leave.

As per my knowledge, if an employee is on a notice period, we cannot give them any paid leave. However, in their clearance, we paid them their full claim of PL (Paid Leave).

Thank you.

An employee is well entitled to take any type of leave during the notice period.

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An employee is well entitled to take any type of leave during the notice period.

Dear colleague,

Granting of leave during the notice period depends on the policy, which varies from company to company, and there is no law that governs its granting or refusal. In the case of the refusal of leave, the law provides for the encashment of the balance leave.

Regards,
Vinayak Nagarkar
HR Consultant

Absence during the notice period

Absence during the notice period isn't permitted. Therefore, it automatically becomes unscheduled leave if availed under unavoidable circumstances. Any leave taken during the notice period extends the duration by the equal number of days.

Objective of the notice period

The objective of the notice period is basically to enable the employer to find a replacement and train them suitably to take up the assigned tasks. During this period, the presence of the outgoing employee is essential. If an employee remains absent during this period, for whatever period of time, it disturbs the schedule.

Encashment of unavailed leave

As per law, encashment of unavailed/balance leave is payable even in the case of the dismissal of an employee. Therefore, insist on the resigned employee complying with the notice period and pay them encashment of balance leave if due.

Please find attached High Court Judgments and Central Rules on leave encashment for your reference and record.

Regards, Suresh

Leave During Notice Period

An employee can take leave during the notice period, provided it is for a genuine reason like maternity, health issues, etc. The Delhi High Court, in one of its judgments, stated that an employee can take leave during the notice period if nothing is mentioned in the appointment letter that bars the employee from taking leave during the notice period, provided he has leave to his credit and is entitled to the same.

In addition, please refer to this link: http://www.lawyersclubindia.com/expe...iod-284276.asp

Notice Period and Leave Policies

In lieu of the notice period, some companies have a policy to adjust balance paid leaves against the notice period at the discretion of the company. If the company has not agreed to adjust the notice period against balance paid leaves, it implies that the company requires the presence of the outgoing employee to properly hand over their charge or portfolio. As mentioned by some members, there is no law or rule prohibiting leaves during the notice period. Companies may have their own rule or policy for restricting leaves during the notice period to prevent unreasonable leaves, as it would not serve the purpose of the notice period.

Please note that any policy or rule in contravention of the spirit and object of rights given by the constitution is likely to go against the company if challenged. Hence, during the notice period, leaves for genuine reasons and in reasonable quantity should be allowed.

Types of Leaves

As you are aware, there are different types of leaves. Earned leaves are encashable, while in some companies, sick leaves are also encashable. It’s obvious that all encashable leaves in an employee's account (accumulated as per the allowed limit) should be paid at the time of full and final settlement.

Regards,
Shailesh Parikh
[Phone Number Removed For Privacy-Reasons]