Is It Legal for My Fintech Startup to Deny Leave Encashment? Seeking Advice on Company Policy

Greetings. I have recently resigned from a fintech startup. The employment agreement mentions that employees should be aware of the leave/medical policy at all times, which I didn't read at the time of signing the contract. I was not made aware of any company policy verbally or in writing. After resigning, HR told me that the company has a policy of not giving any leave encashments. Is it legal to do so? Isn't the company covered under the Shops and Establishment Act or any other act?

What is my recourse here? Any help is greatly appreciated.

Extra info:

I worked as a software developer in that company with a ~1.1L/mo salary in a non-managerial capacity (no one reported to me). It has been 3 months already since my last working day, and the company has outright refused to pay for leave encashment. The company is based in Bangalore and has around 13 full-time employees right now.

Location: Delhi, India

Tags: software developer, Country-India, medical policy, company policy, leave encashment, wages act, Shops and Establishment Act, leaves policy, employment agreement, contract act, City-India-Delhi,

In India, the legality of not providing leave encashment depends on the company's policies and the applicable labor laws. As a software developer in a Fintech startup based in Bangalore, you have certain rights regarding leave encashment despite what may have been mentioned in the employment agreement.

Here are the steps you can take to address this situation effectively:

Review Applicable Laws and Company Policies
- Look into the Shops and Establishments Act and other relevant labor laws in Delhi and India that govern leave encashment.
- Check if the company's policy is in compliance with these laws.

Seek Legal Advice
- Consult with a labor law attorney to understand your rights and legal options.
- They can guide you on the best course of action based on the specific circumstances.

Raise the Issue with HR
- Formally address the matter with HR in writing, outlining your concerns and referencing the applicable laws.
- Request clarification on the company's stance and express your expectations regarding leave encashment.

Consider Mediation or Conciliation
- If direct communication with HR does not yield results, explore mediation or conciliation services to resolve the dispute amicably.

File a Complaint
- If necessary, you can file a complaint with the labor authorities in Delhi for non-compliance with leave encashment regulations.

Document Everything
- Keep records of all communications, agreements, and actions taken regarding the leave encashment issue.
- This documentation will be crucial if the matter escalates.

Final Steps
- If all attempts to resolve the matter internally fail, you may need to escalate the issue through legal channels.
- Your legal counsel can guide you on the appropriate steps to take for a resolution.

Remember to approach the situation calmly and professionally while asserting your rights as an employee. It's essential to be well-informed and proactive in addressing any discrepancies regarding leave encashment.