Leave encashment right ceased
Dear Sir/s,
I need a legal advice on the leave encashment which was being provided by my company but discontinued making a lapse of earlier accumulated leave without earlier announcement
I Joined in September 2010 as Manager HR.
We had drafted & followed leave policy which said "15 EL credited to an employee per year accumulated till 45 days and any earned leave in excess of 45 days shall not be carried forward to and accumulated with the EL entitlement for the next year and leaves in excess of 45 days shall be enchased and paid to the employee."
We followed this policy , however no one except one employee encashed excess leaves in between and carried till maximum and all accumulated leaves got encashed at the time of resignation / termination of employment. This was going fine. people encashed leaves like 58, 62, 50 etc.
Our company got acquired by another in July 2014.
We still continued to pay full encashment to resigned employees till 2015.
In August 2015, when I myself needed some money , I thought to encash 30 leaves( out of 63); Since this was approved earlier to one senior employee in 2014 instead of HR opposition to encash in mid year , I didn't ask my boss (as he was on leave) and included that in the payroll. ( I do the payroll)
When he saw the payroll, he was angry as why it was not asked with him and we had mail trails on this.
I m a person who cannot take a blame of being fraudulent and had my impressions good in all due course of my tenure, hence I returned the encashement amount .
Now as on March 2016, I have 68 leaves to be encashed but management have sent mail as below:
"You will be aware that in the new HR Policies encashment of leave has been discontinued since the company is still continuing to make a loss and cannot afford this additional cost burden.
However, since this policy was applicable for staff earlier, the following amendment is made with effect from 1st April 2016 and will be applicable to only staff at Gurgaon and the state-heads/teams.
1. For Staff - Gurgaon office, state heads, state-teams
- Leave accumulated as on 31st March 2016 is to be calculated.
2. A maximum of 15 days of leave can be accumulated and this will be carried forward.
3. Of the balance in excess of 15 days, please calculate 50% of the leave and freeze this amount. The remaining will consider to have lapsed.
4. When the team members in this list leave the organisation, then they will get 50% of the leave accumulated as per point number 3 above as per their salary on the 31st of March 2016.
Now this means ,out of 68, I can carry forward only 15, balance remains = 53 and I will get encashment on 26 leaves and that too when I'll leave , not now.
My query is that how can the benefit be withdrawn to existing employees ( roughly 10 emp to be given enacashment) when others have already got that. I accept the discontinuation but encashment to all accumulated leave should be given .
Company was making loss since inception in 2010 and even after acquisition they gave encashment of 390000 to senior employee in dec 2014. This is truly biasness & unfairness.
Kindly suggest.
Regards,
HR
Asked 9 years ago in Labour
Religion: <span class="translation_missing" title="translation missing: en.application.none">None</span>
Dear Sir,
Thanks!
My main questions are : I would appreciate exact to the point answer against each question. A reason behind every no would be great for my understanding.
1. Am I eligible to get encashment upto 68 leaves accumulated as on 31st March 2016 if discontinuation of encashment is effective from 1st April 2016. (Supporting fact : All previous employees resigned earlier have got encashment on full accumulated leaves beyond 45.)
2. What is the first legaI recourse I can take if management doesn't change their decision. Whom should I approach for legal help regarding this. Reference of person / law from Delhi would be great as I put up in Delhi.
3. Please share 2-3 similar cases for reference to be sent to employer.
Regards
HR
2.
Asked 9 years ago