Can Employees Take Paid Leave During Their Notice Period? What HR Law Says About It

If an employee avails leave during the notice period, can this leave be considered paid leave?

What does the HR law say on this?

Please advise.

Leave During the Notice Period

If the employee avails their eligible leave during the notice period, it should be paid leave only. The notice period is considered a service period. During this period, you cannot impose any restrictive clauses or conditions. It is true that the notice period is a time during which the employee is required to be in the office for handing over or knowledge-sharing purposes. However, this does not mean that they cannot avail their leave. Normally, long leave will not be permitted during the notice period, but a leave of two or three days will be allowed if that absence will not hinder the knowledge-sharing or handing over process. Obviously, if you make it unpaid, you will have to pay the cash equivalent to the surrender value of leave at the time of making the full and final settlement. Then why don't you make it paid leave?

Most organizations have a policy of not sanctioning leave during the notice period, but it also depends on the intent of the exiting employee and their relationship with the employer. If the intent is not to hinder the handover process and there is a genuine need for the exiting employee to take a day or two of leave, it may be granted.

Leave Eligibility During the Notice Period

Leave eligibility during the notice period can vary based on the company's policies and the country's labor laws. Here are some general points that are commonly observed:

Company Policy

Most companies have specific policies regarding leave during the notice period. Some may allow you to take accrued leave, while others may restrict leave to ensure a smooth transition and handover process.

Labor Laws

In many jurisdictions, employees are entitled to use their accrued leave during the notice period. However, the approval of leave requests is often subject to the employer's discretion, especially if taking leave would disrupt business operations. Some labor laws mandate that unused leave should be compensated if not taken during the notice period. This means you may receive payment for any accrued but unused leave.

Notice Period Agreement

The terms of your notice period are typically outlined in your employment contract or the company's HR policies. This may include specific clauses regarding the taking of leave during the notice period.

Mutual Agreement

In practice, taking leave during the notice period often comes down to a mutual agreement between the employee and employer. If you need to take leave, it's best to discuss it with your manager and HR as soon as possible.

Practical Steps

Review Company Policy: Check your company's employee handbook or HR policies regarding leave during the notice period.
Consult HR: Speak with your HR department to understand your rights and the company's stance on taking leave during the notice period.
Communicate Early: If you need to take leave, communicate your request early and provide a valid reason to increase the chances of approval.

Example Scenario

Employee Handbook Clause: "Employees may take accrued leave during the notice period subject to managerial approval. Unused accrued leave will be paid out at the end of the employment period."
Local Labor Law: "Employees are entitled to take or be compensated for any accrued but unused leave during the notice period, provided it does not interfere with the transition and handover process."

In conclusion, while you may be eligible to take leave during your notice period, it's important to review your company's policies and local labor laws, and discuss your situation with HR to ensure a clear and agreeable arrangement.

As everyone is aware, the notice period is to facilitate the handing over of activities done by the outgoing person to the person identified by the organization. Therefore, availing of leave during the notice period needs to be avoided. However, in the event of any exigencies, the company may sanction leave depending upon discretion. If sanctioned, it is generally paid leave. Some companies have the practice of sanctioning leave and extending the notice period to the extent of leave availed.

Regards,
MVK