Rama Bovi Muniraju (Dy General Manager) 03 April 2015

Non-payment of earned leave on resignation

Dear Learned Experts,

I work for a PSU which has amended the rules pertaining to Earned Leave.Prior to the amendment, in case of resignation by an executive,he could either surrender the Earned leave in lieu of notice period or otherwise could encash the same by serving the notice period.

The amended rule says that on resignation, the executives will not have the option for adjusting the Earned Leave in lieu of notice period nor can they encash.

The query is, whether Earned Leave, which the employee has earned and accumulated, be denied to him either

for adjusting against the notice period or for encashing at the time of his resignation.

I would be grateful for an opinion on the issue please.

Regards,

Ramabovi Muniraju

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1 Replies

Kumar Doab (FIN) 03 April 2015

The leave is governed by enactments applicable to the establishment/employer/employee.......................and such enactments describe no of leave/eligibility to leave, rate of wages during leave,rate of leave encashment.

NO employer can provide benefits that are inferior to those provided for in enactments, but can provide superior benefits.

Leave rules can be framed by negotiated settlement between employer/employee(s)/unions etc, standing orders ........but again..........can not provide benefits that are inferior to those provided for in .enactments.

If such change amounts to change in service conditions without any notice and acceptance seek a recourse first from internal channels.

However your service rules and regulations,leave policy etc should ideally be shown to an able labor Law Consultant/Service matter lawyer before you proceed further.