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Leave Encashment
5 months ago
It has been six months Ive been relieved from service and company has been delaying my leave encashment and assures it will be done when contacted about it
A.Dear Client,
It is not mandatory for employees to utilize all their entitled leaves, and many employers offer the option to carry forward these unused leaves to subsequent years. Employers are required to compensate their employees for the accumulated unused leaves, known as leave encashment. An employee's leave encashment is included in the full and final settlement the company upon their resignation/retirement or termination other than disciplinary action. The leave encashment policy differs from company to company, and the rules vary. The leave is encashed on the current basic salary and dearness allowance (DA) of the employee. As per the Industrial Dispute Act, all the workers/employees must be given 1 day for every 20 completed days worked. As per that per year total of 313 working days, and accordingly 15 or 16 days leave is earned by an employee which are paid leaves apart from Public Holidays, sick leave etc. If your terms of employment allow encashment of Earned Leave up to a fixed limit, then you are entitled to claim encashment of said leave from the Company. So, in case of denial of that service-linked benefit, it may be suggested that if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then for such an arbitrary action and unfair labour practice, serving a legal notice to the company, reach out to the office of the Labour Enforcement Officer(LEO) or Labour Commissioner concerned for filing a complaint against the employer for redressal of your grievance against the Company. Apart from this, you can also file an application u/s.33C(2) of I D Act before the concerned Labour Court for recovery of dues from the employer. Provided that every such application shall be made before the labour court within one year from the date on which the money became due to the workman from the employer:
It is not mandatory for employees to utilize all their entitled leaves, and many employers offer the option to carry forward these unused leaves to subsequent years. Employers are required to compensate their employees for the accumulated unused leaves, known as leave encashment. An employee's leave encashment is included in the full and final settlement the company upon their resignation/retirement or termination other than disciplinary action. The leave encashment policy differs from company to company, and the rules vary. The leave is encashed on the current basic salary and dearness allowance (DA) of the employee. As per the Industrial Dispute Act, all the workers/employees must be given 1 day for every 20 completed days worked. As per that per year total of 313 working days, and accordingly 15 or 16 days leave is earned by an employee which are paid leaves apart from Public Holidays, sick leave etc. If your terms of employment allow encashment of Earned Leave up to a fixed limit, then you are entitled to claim encashment of said leave from the Company. So, in case of denial of that service-linked benefit, it may be suggested that if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then for such an arbitrary action and unfair labour practice, serving a legal notice to the company, reach out to the office of the Labour Enforcement Officer(LEO) or Labour Commissioner concerned for filing a complaint against the employer for redressal of your grievance against the Company. Apart from this, you can also file an application u/s.33C(2) of I D Act before the concerned Labour Court for recovery of dues from the employer. Provided that every such application shall be made before the labour court within one year from the date on which the money became due to the workman from the employer:
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