Facing Issues with Privilege Leave Encashment During Notice Period – What Should I Do?

I was working in one of the reputed MNCs. I submitted my resignation on 27/11/2020. At the time of resignation, I had 34 PLs in the system. My last day was 24th Feb 2021. Even though I had 34 PLs in the system on my last day (12 carried forward plus 22 new PLs added for 2021 on 1st Jan 2021), usually, all PLs need to be utilized by 31st Dec 2020; otherwise, they would lapse on 1st Jan 2021, and only 12 PLs were carried forward.

In my F&F, I was provided the encashment of 15 PLs instead of 34 (12 carried forward plus 3 of Jan/Feb 2021). My concern is that I was not allowed to take leaves during my Notice Period. In my opinion, the company should be liable to pay encashment for all 34 PLs.

In their policy, there is no mention of a case like this. There is no clause regarding PL carry forward for someone serving their notice period. I argued and requested any proof or policy where a clause is mentioned for PL carry forward for someone in their notice period. I also issued warnings and sent reminders to HR about clearing the dues (encashment) for the remaining 19 days, but they have not responded. I am considering serving a legal notice. Please share your thoughts.

Dear Dennis,

I am constrained to state that many people just post their queries pertaining to their employment rights and problems very briefly without the essential particulars of their employment, and yours is another example.

Employment rights and benefits

Needless to say, employment rights and benefits of persons hired for wages/salary by industrial establishments vary according to the capacity of employment like workman, supervisory or administrative/managerial, the nature of the activities carried on by the establishment like manufacturing, sales, other consumer-related services, etc., and the relevant provisions of the establishment-specific labor laws applicable. In this backdrop, an MNC can be anything - a factory, a shop, a commercial establishment, or a service provider, etc., and the nature of your job is not deducible from your post.

Factory employment and leave entitlements

If the establishment is a factory and you are employed even as a manager whose work is directly connected with the manufacturing process, you are entitled to EL on its scale of accrual, accumulation, and encashment on termination of employment like an ordinary workman under the Factories Act, 1948. Some other establishment-specific labor laws do not apply to managerial cadre employees, and in such a case, the contract of employment is the source of the rights and benefits of employment, and a breach in this regard has a different remedy.

Therefore, you better provide all your employment particulars which will enable us to suggest the line of remedial action to be chosen.