Feeling Cheated by New Leave Policy: How Can I Fight for My Full Settlement?

Hi, I worked for one of the top 4 IT companies (service-based) in India. I resigned in the month of May and served my full notice period of 3 months. I left the company last month. I have received all documents (Relieving letters, etc.) and the final settlement amount. However, there was a dispute regarding my leave encashment amount due to a change in policy. A new policy was implemented starting from July 1st, stating that employees resigning after that date would only receive the basic pay as leave encashment during the final settlement.

In the mail communication sent in June, only the resignation date was mentioned. Since I resigned in May, I believe I should be eligible for the old leave encashment policy, which includes basic pay and other basket allowances.

The company is now stating that they will consider my last working day for the new leave policy. Despite sending multiple emails, I have not received a proper reply from them. I feel that I have been cheated in this situation.

How should I proceed further? I strongly believe I am entitled to the previous leave encashment policy. Please advise.

Given the circumstances of your dispute over the final settlement amount in leave encashment due to a policy change, here are the steps you can take to address this situation effectively:

1. Review Company Policies: Carefully examine the company's HR policies and the specific clauses related to leave encashment to understand your entitlements under the old policy.

2. Document Verification: Ensure you have all relevant documents, including your employment contract, offer letter, and any communication regarding the leave encashment policy in place at the time of your resignation.

3. Formal Written Communication: Continue to communicate with the HR department in writing, clearly outlining your position, referencing the policies that were in effect at the time of your resignation, and requesting a reconsideration of your leave encashment amount.

4. Seek Clarification: Request a formal meeting or call with HR to discuss the matter in detail. Seek clarification on why they are applying the new policy retroactively and present your case for being eligible under the previous policy.

5. Escalation: If you do not receive a satisfactory response from the HR department, consider escalating the matter to higher management or the legal department within the company.

6. Legal Consultation: If the issue remains unresolved, seek legal advice to understand your rights under labor laws in India, specifically regarding leave encashment and any retrospective policy changes.

7. Labour Laws Reference: Refer to the Shops and Establishments Act of the state where your company is located, as well as the Industrial Employment (Standing Orders) Act, to determine if the company's actions are in compliance with the law.

8. Stay Professional: Throughout this process, maintain a professional demeanor in all communications and interactions with the company to ensure a constructive resolution to the dispute.

By following these steps and being persistent in your efforts to resolve the dispute, you can work towards a fair outcome regarding your leave encashment amount based on the policy that was in effect at the time of your resignation.