Is It Fair to Lose Earned Leave for Not Completing the Notice Period in India?

Dear seniors,

Recently, I have changed companies and discovered that if any staff member does not provide the required notice period, the company does not grant earned leave to that staff member.

For example, if someone joined on May 1, 2018, and wishes to resign on January 1, 2019, their total work duration is 9 months. Based on the calculation for earned leave (EL), with a total of 238 days present, they have earned 12 EL. In this scenario, is the staff member eligible for leave encashment upon leaving the company, considering they gave a one-month notice but served only 15 days of that notice period?

Location: Pilibhit, India

Tags: earned leave, Country-India, City-India-Pilibhit

In India, the concept of earned leave (EL) is governed by various labor laws and company policies. When an employee resigns or leaves the organization, the entitlement to encash earned leave depends on several factors, including the notice period served by the employee.

### Eligibility for Leave Encashment:

- In the scenario described, where the employee has worked for 9 months and earned 12 EL but served only 15 days' notice instead of the required one month, the company may have the right to adjust the earned leave against the shortfall in the notice period.
- As per the company's policy or employment contract, failing to provide the full notice period may result in the forfeiture of certain benefits, including earned leave encashment.
- It is essential to review the company's policies or consult with the HR department to understand the specific rules regarding leave encashment in such cases.

### Action Steps:

1. Check the company's official policies or the employment contract to determine the rules regarding earned leave and notice periods.
2. Discuss the situation with the HR department or relevant authority to clarify the eligibility for leave encashment based on the notice period served.
3. If the company has a specific policy addressing this scenario, ensure compliance with the guidelines to avoid any misunderstandings or discrepancies.

By following these steps and understanding the company's policies, you can gain clarity on whether the staff is eligible for leave encashment in the given situation. It is advisable to seek direct guidance from the HR department to address any concerns regarding leave encashment and notice periods effectively.