I am an employee of a private bank for the last 3.6 years. I have approximately 60 Privilege Leaves (P.L) credited to my leave account. I want to resign from my job. However, as per our bank policy, an employee should serve a 90-day notice period, and the P.L cannot be encashed.
Therefore, I request your guidance on the following: If I resign from my job, will I have to serve a notice period of 90 days? And if I serve the 90-day notice period, what will happen to my Privilege Leaves (P.L)?
From India, Calcutta
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Therefore, I request your guidance on the following: If I resign from my job, will I have to serve a notice period of 90 days? And if I serve the 90-day notice period, what will happen to my Privilege Leaves (P.L)?
From India, Calcutta
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Serving Notice Period & PL are two different concepts. PL cannot be adjusted within the Notice period. If you do not serve your Notice period, there will be a notice pay adjustment from your Full and Final settlement.
PL encashment depends on the HR Policy of your bank. If your policy states that it will not be encashed, then it will not be.
Regards,
Shivi
AM-HR
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PL encashment depends on the HR Policy of your bank. If your policy states that it will not be encashed, then it will not be.
Regards,
Shivi
AM-HR
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I truly agree with Ms. Shivi. PL encashment depends on company policy, and PL cannot be adjusted during the notice period. If you do not serve your notice period, then the adjustment will be made in the Full and Final settlement accordingly.
Regards,
Prashant
AM - HR
From India, Delhi
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Regards,
Prashant
AM - HR
From India, Delhi
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I agree with the views of other friends.
Adjustment of PL will vary from company to company depending on their policy. PL encashment calculation is based on Basic, whereas the shortfall of notice pay will be calculated on the full salary. There are a lot of interpretations on this issue. Please clarify the issue with your HR before submitting your resignation.
Regards,
K RANGA RAJU
From India, Hyderabad
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1Adjustment of PL will vary from company to company depending on their policy. PL encashment calculation is based on Basic, whereas the shortfall of notice pay will be calculated on the full salary. There are a lot of interpretations on this issue. Please clarify the issue with your HR before submitting your resignation.
Regards,
K RANGA RAJU
From India, Hyderabad
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I strongly disagree with the views of all above. As per the Shop and Establishment Act, an employee should be eligible for a minimum of 15 days of Earned Leave and 12 days of Medical Leave & Casual Leave. Medical Leave can be availed at any time, but the employee needs to submit the treatment record or proof to claim Medical Leave. A maximum of three times the earned leave can be accumulated by the employee (15 x 3 = 45 days). Unavailed earned leave will be carried forward to the next year. At the time of separation, the employer is bound to pay the unavailed Paid leave settlement in the employee's full & final.
Employers can make policies and provide better facilities exceeding government norms but have no right to curtail the benefits and statutory compliance by formulating their policies.
Mr. Suman has all the right to get paid at least 45 days of paid leave.
It is calculated as Basic Salary + DA / 30 x Number of Days Encashable.
Thank you,
Sreehariprasad.N
Manager HR
Delhi Super Specialty Hospital, New Delhi
09650665577
From India, New+Delhi
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Employers can make policies and provide better facilities exceeding government norms but have no right to curtail the benefits and statutory compliance by formulating their policies.
Mr. Suman has all the right to get paid at least 45 days of paid leave.
It is calculated as Basic Salary + DA / 30 x Number of Days Encashable.
Thank you,
Sreehariprasad.N
Manager HR
Delhi Super Specialty Hospital, New Delhi
09650665577
From India, New+Delhi
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Every company has its own policy, but they can't deny the act when they are creating their policy. They should outline all the acts and then prepare the leave policy. Paid leave cannot be adjusted in the full and final settlement.
Thanks,
Binal Kapadia
Manager HR
Actgen Pharma
Panoli (Gujarat)
09824496511
From India, Bharuch
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Thanks,
Binal Kapadia
Manager HR
Actgen Pharma
Panoli (Gujarat)
09824496511
From India, Bharuch
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Mr. Binal,
Notice period may or may not be adjusted with PL balance depending on the Exit/Leave policy of the organization. But as per the Shop and Establishment Act, the accumulated balance leave unavailed by the employee needs to be cleared at the time of separation, that means in full and final dues settlement. Please go through the Act for clarification.
Regards, Sreehariprasad.N Manager HR DHLI Super Specialty Hospital, New Delhi
From India, New+Delhi
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Notice period may or may not be adjusted with PL balance depending on the Exit/Leave policy of the organization. But as per the Shop and Establishment Act, the accumulated balance leave unavailed by the employee needs to be cleared at the time of separation, that means in full and final dues settlement. Please go through the Act for clarification.
Regards, Sreehariprasad.N Manager HR DHLI Super Specialty Hospital, New Delhi
From India, New+Delhi
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Yes, it's true, but employees cannot use 30 days of PL for adjusting the notice period. It is also true that every company will follow their policy, but they must also consider the relevant Act.
Thanks,
Regards
From India, Bharuch
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Thanks,
Regards
From India, Bharuch
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Ms. Binal,
If the notice period of an employee as per the terms and conditions of the appointment is one month and if their exit policy says unavailed Earned Leave can be adjusted against the notice period, an employee can mention in his resignation that his unavailed EL of 30 days' pay should be counted against his notice period. Even in government service, when a person retires or leaves, he is allowed to encash or be relieved early if he opts for that.
I only wish to update your knowledge as you are interested in sharing it with others.
Warm Regards,
Sreehariprasad.N
Manager HR
From India, New+Delhi
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If the notice period of an employee as per the terms and conditions of the appointment is one month and if their exit policy says unavailed Earned Leave can be adjusted against the notice period, an employee can mention in his resignation that his unavailed EL of 30 days' pay should be counted against his notice period. Even in government service, when a person retires or leaves, he is allowed to encash or be relieved early if he opts for that.
I only wish to update your knowledge as you are interested in sharing it with others.
Warm Regards,
Sreehariprasad.N
Manager HR
From India, New+Delhi
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Our organisation planning to introduce encashment policy. our company falls under Shop and establishment act. please guide me.
From India, Belgaum
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From India, Belgaum
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Taxability of leave encashment on resignation.doc
PF Contribution on Leave Encashment - Clarification by EPFO.pdf