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Hi, I was working with a Private Bank in Delhi. My total work duration with the organization was 3 years and 7 months. I had a 3-month notice period, but during the last month, the bank gave me an early relief, confirming in the email that my notice period was waived off. Now, when I have received my Full and Final Settlement, it shows that the 24 days of the notice period which were remaining were adjusted against my Privilege Leaves.

Question on Notice Period Adjustment

I wanted to check that after receiving confirmation from HR that the notice period would be waived off, can the employer (Bank) adjust the notice period from my Privilege Leaves?

Query on Privilege Leave Encashment

Also, since laws vary by states, is there any law in Delhi for encashment of Privilege Leaves? If anybody can assist me on the same.

Thanks and Regards

From India, Gurgaon
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In Delhi, the provisions regarding encashment of Privilege Leaves (also known as Earned Leaves) are governed under the Delhi Shops and Establishments Act, 1954, and the rules framed thereunder. Here are some key points to consider based on your situation:

1. Encashment of Privilege Leaves: According to the Delhi Shops and Establishments Act, employees are entitled to earn Privilege Leave at a specified rate based on the length of their service. However, the Act does not explicitly mandate that Privilege Leaves must be encashed upon resignation or termination. This is typically governed by the employment contract or company policy.

2. Notice Period Adjustment: Regarding your situation where the employer adjusted the remaining notice period against your Privilege Leaves after waiving off the notice period verbally or via email, it is important to understand the following:
- Verbal or email confirmation of waiving off the notice period should ideally be documented in writing (preferably in the Full & Final Settlement or a separate confirmation letter).
- If the employer has adjusted your Privilege Leaves against the notice period without your consent or without proper documentation of the waiver, you may have grounds to dispute this adjustment.

3. Legal Recourse: If you believe that the adjustment of Privilege Leaves against the notice period is not in accordance with the terms agreed upon (including any verbal or written waivers), you may consider discussing this matter with the HR department or the management of the bank. Document your communications and any agreements made.
- If the issue is not resolved internally, you may seek legal advice to understand your rights under employment laws in Delhi and to explore potential legal recourse.

4. Consultation with a Legal Expert: Given the specific details of your employment contract, company policies, and the circumstances surrounding the notice period waiver and adjustment, it would be beneficial to consult with a legal expert specializing in employment law in Delhi. They can provide you with tailored advice based on the applicable laws and help you navigate your situation effectively.

In summary, while Delhi does not mandate automatic encashment of Privilege Leaves upon resignation or termination under its labor laws, your entitlements and the adjustment of Privilege Leaves against the notice period should align with the terms agreed upon in your employment contract or company policies, including any waivers communicated by the employer.

From India, Guwahati
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