How Can Exiting Employees Claim Unpaid Leave Encashment from Management?

Respected Members,

I request to share your suggestions when Management refuses to pay leave encashment amount during F & F settlement. Though they have settled the PF & Gratuity claims, they have not paid leave encashment to employees who have left the organization in the past 2 years. What should an exiting employee do to claim their leave encashment amount? Your valuable advice will help us.

It depends upon the cadre of the employee in the organization and the establishment-specific labor law applicable to the organization as well. Normally, the accumulated earned leave subject to the ceiling mentioned in the applicable law could be encashed for surrender benefit at the time of termination of employment.

Claiming Leave Encashment Under Labor Laws

In the case of employees falling within the definition of "workman" under the Industrial Disputes Act, 1947, they can make a claim under Section 33C(2) of the Act before the Labor Court for the area irrespective of their monthly salary amount. If their monthly wages were Rs. 24,000 or less, they can file a claim under Section 15(1) of the Payment of Wages Act, 1936, before the Authority under the Act, who is normally a Deputy Labor Commissioner for the area. In any other case, they have to initiate a Civil Suit for breach of the contract of employment if such a benefit is mentioned or found in the service regulations applicable to such employees.