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Leave Encashment at Full & Final Settlement


04-Nov-2026 (In Labour & Service Law)
Our company was taken over by another company through NCLT. They asked Managerial staff to resign. While the Gratuity was paid with the new 50% wage rule, the Leave encashment was calculated on a basic pay ( which is 1/3 rd of 50% Wage). What is the legal standing and remedial measures. Is managerial employee entitled for severance pay if nothing is mentioned in the appointment letter of previous co. Also the insolvent company did not pay us 6+ mths Salary, is there any remedial measures?
Answers (1)

Answer #1
565 votes
In such a situation, the resolution plan approved by the NCLT has to be read in particular for assessing the claim entitlements. You can share the documents and after perusing the same, appropriate advice can be given.
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Advocate Alankrit Bhatnagar 

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