Resigned Employee's Privilege Leave: Should We Compensate for 12 Days in Tamil Nadu?

Dear Professionals,

An employee has resigned recently after three years of employment with us. He has accumulated 12 days of PL. According to the S and E Act of Tamil Nadu, should we compensate for these 12 days of PL when we make the F and F settlement?

Please provide clarity.

Thanks and regards,
Jayaa

Dear Jaya,

Strictly speaking, the payment in lieu of the accumulated PL need not be made in view of the wordings of sec.25(3) which specifies such payment only in respect of discharge by the employer or resignation after having applied for such leave but been refused. However, most employers magnanimously permit encashment of unavailed PL on resignation.