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Can company stop or restrict the leave encashment?
26-Jul-2023 (In Labour & Service Law)
Hello, I am working in Software company at Ahmedabad, Gujarat. I have signed NDA in which clearly mentioned that EMPLOYEE CANNOT LEAVE THE COMPANY FOR 6 MONTHS AFTER SALARY REVISION. IF EMPLOYEE DO SO, S/HE HAVE TO PAY 6 MONTHS INCREMENTED AMOUNT. As I am leaving the company after 1 week from 6 months of salary revision but I have resigned in this 6 months duration. There is not mentioned that 6 months of duration is including/excluding notice period. Now HR is telling me that company will not pay leave encashment as you have breach the NDA. Company has rights to change rules of leave encashment anytime. So we will not pay you leave encashment. According to me, I am not breaching the NDA. As I am leaving the company after 6 months of salary revision. Please correct me if I am wrong. So, my question is can company stop or restrict the leave encashment? Has company such rights to change rules of leave encashment anytime? Kindly Suggest.
if you have already signed the terms of agreement then you would have to comply with the terms of the agreement . If you donot comply with the terms then he may file a civil suit under the provisions of contract law.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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