Hi all,
We are planning to terminate an employee on the basis of a performance issue. I would like to understand if there are any compliance regulations related to the payout of unused earned leave, or if it can vary from company to company. We have stated in the employee handbook that in cases of performance issues, no paid or earned leave will be compensated, which should be sufficient.
Thank you.
From India, Jaipur
Acknowledge(0)
Amend(0)
1We are planning to terminate an employee on the basis of a performance issue. I would like to understand if there are any compliance regulations related to the payout of unused earned leave, or if it can vary from company to company. We have stated in the employee handbook that in cases of performance issues, no paid or earned leave will be compensated, which should be sufficient.
Thank you.
From India, Jaipur
Acknowledge(0)Amend(0)
PL/EL is the type of leave that an employee accrues/earns while in service, which needs to be allowed for encashment and payout to be made/sent to the concerned employee, whether the reason for separation is either resignation or termination.
From India, Aizawl
Acknowledge(0)Amend(0)
From India, Aizawl
Acknowledge(0)Amend(0)
Please provide the details of the type of organization and the place where the employee was working. The regulations differ from state to state.
You need to check the Standing Orders as well as the applicable laws (Shop & Establishment / Factory Act) for the rule. In most cases, it is an unalienable right to encash earned leave, so what your HR Handbook says is irrelevant.
From India, Mumbai
Acknowledge(0)Amend(0)
You need to check the Standing Orders as well as the applicable laws (Shop & Establishment / Factory Act) for the rule. In most cases, it is an unalienable right to encash earned leave, so what your HR Handbook says is irrelevant.
From India, Mumbai
Acknowledge(0)Amend(0)
Standing orders have to be certified by the lab department, and no clause as stated by you will stand the test of the law. Kindly recheck if your standing orders are certified.
EL/PL is to be paid irrespective of the reasons for termination.
Col. Suresh Rathi
From India, Delhi
Acknowledge(0)Amend(0)
EL/PL is to be paid irrespective of the reasons for termination.
Col. Suresh Rathi
From India, Delhi
Acknowledge(0)Amend(0)
Dear Spriha,
Whatever an industrial establishment may be and the nomenclature of the accruing nature of leave linked with an employee's attendance and endowed with the privilege of accumulation to a certain extent, there would certainly be a statutory provision for its encashment as a terminal benefit, regardless of the nature of termination of employment. Such an unqualified statutory employment benefit cannot be taken away by any other means. Any rule inconsistent with such a statutory provision is null and void. Would you deny salary or wages for the days worked up to the date of dismissal?
Therefore, the nature of termination of employment has no correlation to the payment of unavailed EL/PL at the leave credit of the ousted employee.
From India, Salem
Acknowledge(0)Amend(0)
Whatever an industrial establishment may be and the nomenclature of the accruing nature of leave linked with an employee's attendance and endowed with the privilege of accumulation to a certain extent, there would certainly be a statutory provision for its encashment as a terminal benefit, regardless of the nature of termination of employment. Such an unqualified statutory employment benefit cannot be taken away by any other means. Any rule inconsistent with such a statutory provision is null and void. Would you deny salary or wages for the days worked up to the date of dismissal?
Therefore, the nature of termination of employment has no correlation to the payment of unavailed EL/PL at the leave credit of the ousted employee.
From India, Salem
Acknowledge(0)Amend(0)
Yes, I very much agree with the contributions made by the learned members, and to be specific, by Sir Umakanthan M.
Dear Member,
Any decision, policy, or act of an organization that is contrary to the prevailing statute will be null and void, and the same can be challenged in a court of law. Your organization should refrain from practices that may harm the overall organizational image and reputation. I suggest going through the Act carefully and acting in line with it. Due to such practices, many organizations have faced honorable court verdicts that have been against Factories/Establishments.
Thank you.
From India, Pune
Acknowledge(0)Amend(0)
Dear Member,
Any decision, policy, or act of an organization that is contrary to the prevailing statute will be null and void, and the same can be challenged in a court of law. Your organization should refrain from practices that may harm the overall organizational image and reputation. I suggest going through the Act carefully and acting in line with it. Due to such practices, many organizations have faced honorable court verdicts that have been against Factories/Establishments.
Thank you.
From India, Pune
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Employee Termination during covid 19.pdf
Employee Appraisal Form new.doc