En cashment of EL Leaves - Can any organization deny sighting their internal policy?

Could anyone shed light on the encashment of EL leaves for employees? If an employee has more than 20 EL leaves remaining at the time of relieving their duties in a particular organization, can that organization deny encashment citing their internal policy of non-encashment of EL leaves, regardless of the employee's position within the organization?

The encashment of Earned Leave can be denied to an employee if there is no such policy existing in the organization.

Regards, JSM

Encashment of EL

Encashment of EL depends upon the HR policy of the company. Generally, many companies do allow encashment of the unavailed portion of EL at the time of the final settlement of an employee, upon resignation or retirement. In your case, as your company policy does not allow the encashment of EL, the employee could have availed EL. However, HR can initiate steps for waiving off the policy as a very special case and arrange encashment of leave (by documenting it and putting it up for approval to the MD/CEO through the Finance head or CFO).

Thanks.

Encashment of Earned Leave (EL) Policy

If the organization is not covered under any of the state or central labor laws on entitlement, grant, accumulation, and encashment of Earned Leave (EL), then the management of such an organization may frame their own policy to regulate the provisions of EL. Otherwise, we are to implement the applicable law on the encashment of EL. In general, most establishments are covered under either the state Shops and Establishments Act or the Factories Act, 1948, wherein we have provisions on the encashment of EL, albeit with some limitations.

Regards, R N Khola

No organization can frame regulations or policies against prevailing law; hence, an organization cannot deny leave encashment.