Management refused to pay leave encashment benefit to an exit employee.

desaivinit1
Respected Members,
I request to share your suggestion, when Management refuses to pay Leave encashment amount during F & F settlement. Though they have settle the PF & Gratuity claims.They have not paid Leave encashment to employees who has left the organization since 2 years.What should an exit employee do to claim his leave encashment amount ? Your valuable advise will help us.
umakanthan53
Dear Desaivini,
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. In the case of employees falling within the definition of " workman "under the Industrial Disputes Act,1947 they can make a claim u/s 33C(2) of the Act before the Labor Court for the area irrespective of their monthly salary amount or if their monthly wages was Rs.24000/= or less they can file a claim u/s 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.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute