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

View All Answers
A.Dear Sir,
You can raise the issue with Labor Commissioner.
Helpful
Helpful
Share

Post Your Matter Post Your Matter

Talk to a Lawyer Talk to a Lawyer

Ask a question Ask a question

Vidhi Samaadhaan Vidhi Samaadhaan

Read Related Answers

question iconNeed help in securing my stake that was promised verbally
Dear Client, Verbal promises or commitments as to a 4% stake in the company do not constitute a valid agreement. So, in absence of a contract on the subject, you can't sue or take any action against t...
question iconSeeking Legal Advice Regarding Employment Issue
Dear Client, Usually, PSUs enter into agreements with outsourcing agencies that provide manpower for a particular project or for general day-to-day work in a particular department. PSUs go for outsour...
question iconAccountant in a production house
Dear Client, The relationship between a probationer and the employer is also governed by the terms of the contract of employment or offer letter. A Probationer is not treated as an employee in the pe...
question iconNot paid the April month salary
Dear Client, In the prevailing situation, after serving a legal notice for the cause, a complaint against the School Management can be lodged over non-payment of salary to the National Council of Teac...
question iconSalary deduction for not serving notice period
Dear Client, It is very tricky situation when there is no formal agreement signed between employer and employee but it becomes an implied oral contract,if want to be taken then send a legal notice t...