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Leave balance encashment after the resignation
01-Aug-2023 (In Labour & Service Law)
Hi, I was working with an e-commerce company(india's leading) & resigned @ MaY'16. When I got the FNF amount , i was not given the amount for all the PL & CL available in my a/c. I was just paid for 7.5 Leaves while I was having almost 29 PL & 20 CL(Unavailed). but i got the answer from the employer that as per policy , only 7.5 leaves can be encashed while i think that this should be against the law as this policy is okay if its about carry forwarding the leaves during employement but while I resigned , I should be paid for all. pls suggest.
You should first read the Company Policy. If the Company Policy corresponds to what you are alleging, then send a legal notice to the employer to make good your claims of your Paid Leaves and Casual Leaves.
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Leave is not a matter of right and it is a privilege granted by the employer to the employee However under Factory Act there is no mention of leave encashment while in service even with consent of Management. An employee can take leave encashment while quitting services, superannuation, discharge, dismissal or death. Leave encashment should be as per average daily wage of employee. There are some companies which pay leave encashment on basic and DA, which is not correct.
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Adv. Harish Chandra Yati
Noida | 100+ Answers
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