Leave encashment policy changed by current employer without any notice Leave encashment policy changed by current employer without any notice

4 years ago

We were part of Company A till Jul 2019 and our product was sold by Company A to Company B. As part of the contract, all employees who were working on the product were moved to company B.
During our transition we were told that all policies of Company B will remain same or better than Company A.
In Company A, for leave encashment there was a policy that max "30" privilege leaves can be encashed based on gross salary. When we moved to Company B during induction they told us that they have policy of max privilege leaves which can be encashed is "45" so we were quite happy.
Later we came to know that company B is changing its policy and is giving an option of either encash 30 leaves using gross or can encash 45 leaves using basic salary calculation.

I have saved all my privilege leaves till date with the understanding that i will be able to encash all 45 leaves based on my gross salary which used to be the case in my previous organization company A during my full and final settlement. Now since I am on notice period neither I can utilize my extra privilege leaves (15 in case I go for option of encashing 30 leaves using gross salary formula). This doesn't seems fair to me as I am going to loose lot of money because of this and this is a breach of trust from Company B.

Please suggest if this is legally correct from Company B perspective that without informing the employees they are changing the policy and also what is the legal course of action which I can take.

Thanks much!

Kishan Dutt Kalaskar

Responded 4 years ago

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A.Dear Sir,
You can raise the issue with Labor Commissioner.
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