Is the company's leave lapse policy justified under labor laws?
I hope this message finds you well. I am writing to seek clarification regarding the company's leave lapse policy, specifically in relation to my recent resignation. I resigned from the company on the last day of November 2024. According to my records, I have accumulated a total of 27 days of leave for 2023 and 2024 (10.5 days from 2023 and 16.5 days from 2024). However, the company's policy states that any unavailed earned leaves from 2023 will lapse on December 31, 2024. I understand that the company is neither encashing these leaves nor allowing me to avail them during my notice period. However, I would like to know if this policy is justified and whether there are any provisions under labor laws that could support my case. Additionally, I would like to inquire if the labor court can assist in this matter and if there are any other ways I can seek relief. Thank you for your attention to this matter. I look forward to your response.
Employees are typically entitled to encashment of earned leaves upon resignation, and companies cannot unilaterally declare leaves as lapsed without providing compensation. You can challenge the company's leave lapse policy by filing a complaint with the labor court or the regional labor commissioner, citing provisions under the Shops and Establishments Act that protect employees' rights to accumulated leave. Consult an employment lawyer to draft a legal notice demanding encashment of your 27 days of accumulated leave and to explore potential legal remedies.
Sir, if your company is not allowing you to encash unused leave, even though you're entitled to it under labor laws, this could be a violation of your rights. It's best to consult a labor lawyer to understand your options. If needed, you can approach a labor court to resolve the issue and seek fair treatment regarding your leave. For further legal assistance contact us on our helpline number.
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