I resigned from post of Engineer in a pharmaceutical company after 8 years of service. At the time of leaving I had 136 earned leaves in balance, but in my full and final settlement, they have paid me only 60 days of leave encashment. When asked about this they said that it is company policy. I know that they do not have any such policy and neither is any such thing mentioned in my appointment letter. They have paid me all other dues like gratuity, bonus, salary etc, but I feel that I have been cheated as they still have to pay 76 days of EL, which amounts to more than 1 lakh Rs.
Please advise me, as to what should I do now? Leave the matter and move on or pursue the matter legally? If I should pursue the matter, how should I go about it as I do not know the procedures?
From India, Panaji
Please advise me, as to what should I do now? Leave the matter and move on or pursue the matter legally? If I should pursue the matter, how should I go about it as I do not know the procedures?
From India, Panaji
Dear Sudeep,
Before deciding to leave the company, you should have checked the company's policy and availed the earned leave in excess of 60 days.
If the company is claiming that they have a policy of leave encashment up to 60 days, you can certainly check that point looking into their company policy or certified standing orders, if your appointment letter doesn't contain such stipulations. If they don't have any such stipulations in writing anywhere then you have strong case to move to labour department of the area for relief.
BS Kalsi,
Member since August, 2011
From India, Mumbai
455Before deciding to leave the company, you should have checked the company's policy and availed the earned leave in excess of 60 days.
If the company is claiming that they have a policy of leave encashment up to 60 days, you can certainly check that point looking into their company policy or certified standing orders, if your appointment letter doesn't contain such stipulations. If they don't have any such stipulations in writing anywhere then you have strong case to move to labour department of the area for relief.
BS Kalsi,
Member since August, 2011
From India, Mumbai
There can be no such policy if the same has not been communicated to employees officially. The company ought to have paid for the entire balance. If you have proof of leave balance then you can approach Government Labour Officer & follow his advice thereafter. They have to pay leave salary based on your gross salary.
From India, Mumbai
From India, Mumbai
The company is right, in Gujarat and Maharashtra state S&E Act the earned leave can be accumulated for not more than 3 years i.e. 21 leaves x 3 years which is 63 leaves over and above 63 leaves all earned leaves will be lapsed and is not payable by virtue, hence even legal cannot be of much help to you.
From India, Ahmadabad
From India, Ahmadabad
Thank you experts for your prompt responses. Would like to mention that the company does not have any certified standing orders and no official communication to employees too. My last salary slip has the balance leaves mentioned therein. Will that be treated as proof?
Also as per my appointment letter, earned leaves per year is 30 and not 21. And if S&E act says that more than 60 leaves cannot be accumulated, then was it not the responsibility of the company to encash the excess leaves at the end of previous year? Not only have they never encashed earned leaves anytime during my tenure, but they have also carried forward and mentioned the balance leaves in all salary slips. As I mentioned, my last salary slip shows EL balance as 136.
Thanks again for the valuable tips. God bless you all!
From India, Panaji
Also as per my appointment letter, earned leaves per year is 30 and not 21. And if S&E act says that more than 60 leaves cannot be accumulated, then was it not the responsibility of the company to encash the excess leaves at the end of previous year? Not only have they never encashed earned leaves anytime during my tenure, but they have also carried forward and mentioned the balance leaves in all salary slips. As I mentioned, my last salary slip shows EL balance as 136.
Thanks again for the valuable tips. God bless you all!
From India, Panaji
Since you have slip showing leave of 136, company cannot retract from it & is obliged to pay leave salary on 136 days. As per Maharashtra shops act, wages for calculation of leave will be gross wages.
From India, Mumbai
From India, Mumbai
Dear Sudeep
Kindly refer the leave policy of your company to have a greater idea, since the company cannot encash the Leave money but the employee has to claim the Leave/Encashment of leaves before its lapse. The payslip should not show the leave accumulated upto 136 leaves if it is shown then it is an error from the company too for which you can ask the management
From India, Ahmadabad
Kindly refer the leave policy of your company to have a greater idea, since the company cannot encash the Leave money but the employee has to claim the Leave/Encashment of leaves before its lapse. The payslip should not show the leave accumulated upto 136 leaves if it is shown then it is an error from the company too for which you can ask the management
From India, Ahmadabad
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