Employer said that leave encashment is not part of the FnF settlement

Hi, I'm currently serving my notice period, and my Last Working Day (LWD) is 10th April 2024. After I submitted my resignation, my employer said that leave encashment is not part of the FnF settlement. This policy was not informed during the interview process, onboarding, or induction program, and it is not even mentioned in my offer letter or on the company policy site.

Please suggest what action I can take on this.

Encashment of Unavailed/Balance of Earned Leave

Encashment of unavailed/balance of earned leave is a right conferred to the employees as per law. Therefore, if the employer says that they don't have such a policy, it cannot be accepted. The F&F should invariably contain leave encashment subject to the relevant law as applicable to the establishment, i.e., Factories Act or Shops Act, as the case may be.

You are on your notice period, and your last working day is 10th April 2024. Can you take leave until 09/04/2024? If yes, then take leave; otherwise, ask them to provide this in writing.

It is mandatory for an employer to encash the unavailed/balance earned leave, and the same should be paid at the time of F/F settlement. You may request your employer. Alternatively, you can raise your grievance with the local Factory/Shop and Establishment inspector.

Regards, R R Kapoor
Vadodara