Resigned Without Notice: Can I Use My 58 Pending Leaves to Offset Salary Deductions?

Hi, I was working for a private company and resigned without serving the notice period as my new assignment required immediate joining. I have 58 leaves pending, but the company says they don't have a policy to encash leaves. I would like to know if there is any basic law that allows us to ask the company to consider a certain amount of accumulated leaves. Also, the company is asking for one month's salary; however, I think it should be only the basic component of the salary and not the entire salary. Please suggest. Thanks in advance.

Regards, Hitesh D

Dear Hitesh,

You need to clarify, as there are various types of leaves and it varies from company to company. All leaves are not encashable; encashment of leaves is entirely governed by the company's leave policy. Please check the leave policy. Only encashable leaves can be adjusted against a short notice period.

Shailesh Parikh
99 98 97 10 65
Vadodara

Dear Hitesh,

Encashment of leaves is totally dependent on your organization's policies. If your company doesn't have that policy, then all your pending leaves will be void. The company can ask you to pay back the notice period salary if you have signed a bond. Generally, the company will ask for the monthly payment that you were receiving as part of your salary.

P.S. - If you want to remain anonymous, please don't sign with your name:)

Regards,
Sairam Bandi
sai@kredily.com

The purpose of having a notice period in the employment letter is twofold. First, it is to avoid shocking the employer by resigning overnight without a replacement in place. Second, it is to ensure that the new employee or the person taking charge is suitably trained and made aware of the job's issues and responsibilities. The higher the position you hold, the more responsibilities you have, requiring time for a proper handover, and this is where the notice period comes into play.

Unless specifically mentioned, it is not feasible for any management to allow their employees to use their leaves as a notice period, at least not in full. The employer may request you to personally hand over your duties and ensure there are no outstanding issues for a certain period (about 3-4 weeks). You can negotiate with the employer to adjust part of your remaining leaves as part of the notice period, but it is crucial that both parties are satisfied to avoid any future issues.

Ultimately, the policies of the company dictate how the notice period is managed, and the management may require you to work through your notice period and settle any dues during the Full and Final settlement process.

Thanks and Regards