Is It Fair for My Company to Deduct Leave Days from My Notice Period Payout? Seeking Advice

Hi, I served with an organization for 5 years and 8 months. Due to numerous organizational structure changes, I decided to move on and tendered my resignation. The notice period policy stipulates 90 days, but I requested a 60-day notice period, which was further reduced to 48 days after discussing with the COO, who approved my early departure. Despite repeatedly asking HR for an estimate of the final settlement breakup, I received a direct payout in my account. This payout included one month's salary, gratuity, and the company deducted 15 days for the notice period shortfall after the revised release date. I covered the remaining days with my accrued leave.

HR informed me that the leaves used during the notice period would not be compensated. I seek assistance from the forum to understand if this situation is fair and logical.

Thanks & Regards, Emmanuel

Yes, the position is that either you serve the notice period and get paid for it as well as for the leave in your credit, or the leave balance is adjusted against the notice period, and you are not paid for it. So, in lieu of working for so many days, you are surrendering the leave. See, it is, you cannot have the cake and eat it too; you cannot have both.

Thanks for your reply, KK. I expected a response from HR. I am still not convinced as the organization doesn't allow leaves to be taken during the notice period, doesn't compensate for leave exceeding five days, and doesn't pay if they consider it against the notice period. I agree it's in lieu of the shortfall, but still, it isn't a favor done towards the employee. The employee has earned their leave and ought to be paid for that. Unfortunately, the policies and procedures affect employees more.