Is It Fair to Forfeit Paid Leave Over 45 Days? Seeking Advice on Legal Options

Dear Team,

Earlier, it was the practice to accumulate PL and pay it in full as part of the final settlement after an employee resigned. However, the company has now decided that any PL above 45 days will be forfeited and will not be given to employees.

Request for Encashment of Excess PL

Can we request the encashment of excess PL beyond 45 days? Please suggest any legal provisions. This decision puts older staff members with balances exceeding 100 PL days at a disadvantage.

Dear,

As per the Factory Act, any member can accumulate a maximum of 30 PL. However, it depends on the company policy, which differs from company to company. Some companies carry forward only a limited number of leaves, and the rest of the balance leaves, if any, get lapsed. The mode of encashment varies from company to company. Some companies pay it based on basic pay, while others pay on basic plus allowance. Some encash at the end of every year, and some at the time of leaving the company.

I think your company is changing the rules under the law.

Regards,
Sunil