Hey guys,
I've been working for a company on a third-party payroll on an 11-month contract from 15th Feb to 14th Jan. My contract has been extended for another 11 months. However, the third-party payroll company has not given me any leave encashment. After I sent them an email regarding the same, they replied with part of another trail email where a senior from the client company stated that no employee will be given any leave encashment here.
What do I do? What do I reply back? I was not updated about any change in the client's policy related to leave encashment. Was I supposed to be updated with the change in policy? Is there any law that I can go by?
From India, Mumbai
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I've been working for a company on a third-party payroll on an 11-month contract from 15th Feb to 14th Jan. My contract has been extended for another 11 months. However, the third-party payroll company has not given me any leave encashment. After I sent them an email regarding the same, they replied with part of another trail email where a senior from the client company stated that no employee will be given any leave encashment here.
What do I do? What do I reply back? I was not updated about any change in the client's policy related to leave encashment. Was I supposed to be updated with the change in policy? Is there any law that I can go by?
From India, Mumbai
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Dear Jashamara,
Normally, encashment of only earned leave/privilege leave/annual leave with wages remaining at the credit of the employee's leave account is statutorily permitted on termination of employment only. Therefore, no periodical surrender of such leave for cash benefit can be claimed by the employee as a matter of right. If it was included earlier in the Leave Policy of the immediate employer/contractor and subsequently changed, you cannot fight with the TTP or the contractor because it is not statutory.
From India, Salem
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6185Normally, encashment of only earned leave/privilege leave/annual leave with wages remaining at the credit of the employee's leave account is statutorily permitted on termination of employment only. Therefore, no periodical surrender of such leave for cash benefit can be claimed by the employee as a matter of right. If it was included earlier in the Leave Policy of the immediate employer/contractor and subsequently changed, you cannot fight with the TTP or the contractor because it is not statutory.
From India, Salem
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf
SC -PF judgment on No PF on Leave encashment.doc
EPFO Circular Leave Encashment.jpg