How Can My Friend Get Leave Encashment When Her Company Says It's Not Possible?

Dear Professionals,

My friend is working in a hair extension manufacturing company owned by an American. She is currently in her notice period as she has resigned from her job. She has earned 15 days of leave. Her management informed her that there is no leave encashment available and insisted that she utilize the 15 days of leave and be relieved from her job. However, she wishes to work through the notice period and receive leave encashment. Please provide a solution regarding obtaining leave encashment.

Regards, Kiruthiga Chandran HR Executive

Since the establishment is a factory, the Factories Act will be applicable to it. As such, the employee is entitled to get the unavailed earned leave surrendered and encashed at the time of discharge from the factory. This is a right, and the employer cannot change. Please refer to Section 79 of the Factories Act for details.

As per Section 2(m) of the Factories Act, 1948, the establishment comes under the Factories Act. Under Section 79(3), she is eligible for encashment. In view of subsection (3) of Section 79, which provides that even when the workman quits their service on their own account, they shall be paid leave wages, an employee who tenders resignation with notice is entitled to claim wages for earned leave. Your friend is eligible for earned leave encashment.