I joined a Pharma company in June 2005. The company has a policy for 28 days of PL (Paid Leave) every year. PL could be accumulated up to 90 days. After that, half of the excess PL can be availed and half encashed if the employee applied to avail leave but the superior has rejected and recorded it.
In 2007, the above PL policy was amended through a circular which states that after the accumulation of 90 days, all excess PL may be encashed if applied to avail PL but rejected by the superior (no need to avail half PL and encashment).
We followed the policy guidelines and accumulated more than 200 PL in 8 years and 6 months of service, but were never paid any amount in lieu of excess PL due to a paucity of funds. However, we were assured that whenever funds are available, the amount will be released.
Again in 2013, the company changed the PL policy which states: Maximum PL accumulation will be 180 days, out of which 120 days will be encashed at the time of separation. However, the encashment policy during the job remained unchanged, i.e., applied to avail leave, rejected by the superior, and recorded.
In November 2013, we were asked to leave the company due to financial problems. The management decided to downsize the company.
Our account was settled, but we have been paid the encashment of 120 days only instead of all PLs which were accumulated because of non-approval to avail PL during the job. The management is citing the 120 days clause of the current policy and ignoring other clauses by which our PL accumulated more than 200 days since we could not avail it. My pending amount is approximately Rs. 55,000.00.
Can I have a legal remedy? What is the legal status of our excess PL not paid?