Encashment of Privilege leave not approved by the organisation

518 votes

The encashment of Privilege Leave (PL) upon termination due to disciplinary action primarily depends on the service rules of the organization. If the organization's policies explicitly state that leave credits lapse upon removal and encashment is only permissible in cases of resignation, retirement, or death, the denial may be legally justified. However, judicial precedents play a crucial role in determining whether such policies are enforceable. The Karnataka High Court’s ruling in G Linganagouda vs General Manager should be closely examined. If the court has held that forfeiture of PL encashment upon disciplinary termination is unreasonable or contrary to established legal principles, there may be scope for challenging the decision. It would be advisable to review the full text of the judgment to assess its applicability. If the ruling favors employees in similar situations, legal recourse may be available. Otherwise, the organization's stand may remain legally defensible. Seeking specific legal guidance on the matter would be prudent.

Advocate Adarsh Kumar LawRato