Confused About PL Encashment Rules After Resignation? Seeking Advice for Bengaluru, India

I have worked as a Manager for 9 years and 5 months in a Regional Rural Bank. I resigned from that position and joined a new organization. When submitting my resignation, I requested to encash my PL along with other terminal benefits, but my request was denied, citing a circular dated 2015. The Service regulation (amended in 2016) does not mention PL encashment after resignation. The sponsor bank of the RRB specifies PL encashment after resignation at 50% of the available PL. Is there any law that states I am eligible for PL encashment? Please suggest. Location: Bengaluru, India

In India, the regulations regarding the encashment of earned but unused Privilege Leave (PL) after resignation can vary depending on the employer's policies, industry practices, and applicable laws. Here are some key points to consider in your situation:

Legal Perspective
- The legality of PL encashment after resignation in India is primarily governed by the Shops and Establishments Act of the respective state where the organization is located. These Acts often outline provisions related to leave encashment, including PL.
- Additionally, if there is a specific provision in your employment contract, company policies, or the RRB's Service Regulations, it would take precedence regarding PL encashment after resignation.

Applicable Law and Policies
- It's essential to review the specific provisions of the Service Regulations amended in 2016 for the Regional Rural Bank where you were employed. If these regulations do not explicitly address PL encashment post-resignation, other legal frameworks may come into play.
- The Sponsor Bank's policy of allowing 50% encashment of available PL after resignation could be a significant factor in determining your eligibility for PL encashment.

Action Steps
1. Consult the HR or administrative department of your previous employer to understand the reasons behind the denial of your PL encashment request. Request clarification on the circular dated 2015 and its impact on your situation.
2. Refer to the amended Service Regulations of the RRB to ascertain if there are any provisions related to PL encashment upon resignation that may have been overlooked.
3. If necessary, seek legal advice from a labor law expert or consult with relevant authorities to determine your rights regarding PL encashment under the prevailing laws and regulations in Karnataka.
4. Consider negotiating with your previous employer or the relevant authorities based on the information gathered to potentially secure the encashment of your accumulated PL as per applicable policies or precedents.

By following these steps and understanding the legal and policy frameworks governing PL encashment after resignation, you can navigate the situation effectively and advocate for your entitlements.