RE: Priviledge Leave/ Earned Leave
Querist :
Anonymous
(Querist) 23 November 2009
This query is : Resolved
Dear Sir,
In a Private Sector Bank, [allegedly a subsidiary of Public Sector Bank, holding 98% shareholding in this bank], which is a Banking Company within the meanings of The Companies Act 1956 & The Banking Regulation Act 1949, has following provisions in Service condition about Priviledge leave/ Earned Leave:
1. Priviledge leave upto 240 days can be accumulated by an employee during service period, which is encashed on the date of superannuation/ retirement. No other specic provision say in case of resignation is provided i.e. neither barred nor allowed.
2. At the time of resignation the earned / priviledged leave are not allowed to be encashed. However in Parent bank 1/2 of accumulated leave are permitted to be encashed.
My query:
a)whether earned leave/ priviledge leave [which is a right under the law] of an employee can be denied by employer on resignation and whether employer has any right not to allow encashment when earlier employer has denied the same to employee on official exigencies.
b) What provision of Law governs the rules relating to privilege leave. Please note that Partial provisions of The Shop & establishment Act are applicable upon the Bank.
c)Service conditions interalia provides that at the time of resignation three months notice or payment in lieu thereof is provided which may be termed as liquidated damages and when appointment contract provides for specific liquidated damages, whether employer is entitled to add more damages by way of forfieting priviledge /earned leave.
An early clarification is solicited.
Thanks & regards.
