I am working in a Pvt. Ltd. company. One of our employees gave a resignation notice on 18.11.09. At that time, her leave balance was 26 days. She submitted her leave application as the leave balance was 26 days. Management never sanctioned her application and put it on hold. Without permission from the management, she left the office on 20.11.09. She never completed her notice period and now she is asking for leave encashment of 26 days and 18 days Dec 09 salary. Otherwise, she will fight it legally. Management's opinion is that she had surrendered her leave. We need help in this matter.
From India, Pune
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1From India, Pune
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December salary becomes due only on 18th. Therefore, there is no meaning in asking for December salary right now. If she has already given her representation, you can reject it, stating that she has been absconding since 20th November and there is no basis for her to request 18 days' salary along with 26 days' leave encashment. Yes, if there has been an understanding between the employee and employer, she can be granted 26 days' leave, and she can be allowed salary for the month of November (considering her attendance till 20th Nov and 10 days of leave) plus salary for 16 days in December. In no way is she entitled to both the salary and leave encashment. Even if she pursues legal action, the maximum award will be salary for the 26 days of her absence.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Employee Rights to Leave Encashment
The employee has the right to claim encashment of earned leave, as mentioned in her contract or local employment laws. If her leave application wasn't formally rejected, even being put on hold might not hold up in court. She might be entitled to a portion of her December salary depending on the number of days worked before leaving.
From United States, Chicago
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The employee has the right to claim encashment of earned leave, as mentioned in her contract or local employment laws. If her leave application wasn't formally rejected, even being put on hold might not hold up in court. She might be entitled to a portion of her December salary depending on the number of days worked before leaving.
From United States, Chicago
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The employee, although she might have left without completing the notice period, still may have accrued leave entitlements as per the company's policy or local labor laws. Denying leave encashment without proper investigation and communication might raise legal concerns.
From United States, Chicago
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From United States, Chicago
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Dear, please go through the appointment letter (terms and conditions of employment). At the time of the full and final (F&F) calculation, you can deduct the recoverable amount NP as per employment terms and conditions and applicable labor laws.
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Hi, We understand the situation and the concerns raised. It would be beneficial for both parties to seek legal advice to clarify the situation and ensure a fair resolution. It's important to address this matter with transparency and in accordance with company policies.
Thanks
From India, Bangalore
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From India, Bangalore
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Taxability of leave encashment on resignation.doc