Can I Use My Leave Balance to Cover Notice Period Shortfall if Released Early?

Hi, I have recently resigned from an MNC. As per my contract, the notice period is 3 months. I submitted my resignation on 1st July and requested 16th July as my preferred last working day. However, the company decided to release me on 14th July instead. They are adjusting 78 days of my accumulated leave balance against this early release.

My question is, if my employer is letting me go before my preferred last working day, am I entitled to adjust my accumulated leave balance for the shortfall in the notice period?

Generally speaking, relieving two days in advance is separate from adjusting accumulated leave against a shortfall in the notice period. Though the employer is free to advance the relieving date, the additional shortfall of two days in the notice period cannot be adjusted against your accumulated leave. Adjusting the partly or wholly accumulated leave against the notice period is again an employer's prerogative; an employee is not entitled to it.