• Leave encashment policy changed with retrospective effect

I left the organisation  a pvt company on Jun,16 till that time there was no communication from company that now there will not be any encashment of privelige leave at the time of full and final settlement.the emplyees till that date were given leave encashment either in pay sheet or at the time of their full and final settlement.After 45 days  when my full and final was done there was no component of leave encashment amount.when i asked HR for the same they replied leave policy has beem revised on 1st Apr,16 where there is no provision of leave encashment either at accumulation of 45 PL or at the time of FFS. This intimation was never given to employees before hand. IF such change was there why the employees who left in current finamcial year havd been given leave encashment amount in their FFS?
Please suggest how should i proceed to get my money back of leave encashment.and cite some legal cases for reference also.
Asked 4 months ago in Labour from Bangalore, Karnataka, India, Karnataka
1) any change n leave encash ment can only be with prospective effect 

2) further company has to intimidate all the employees about change in leave encash ment policy 

3) you can issue legal notice to company to pay amount towards leave encash ment 
Ajay Sethi
Advocate, Mumbai
23367 Answers
1224 Consultations
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If company refuses to pay inspite of legal notice file suit to recover your dues 
Ajay Sethi
Advocate, Mumbai
23367 Answers
1224 Consultations
5.0 on 5.0
Hi
 Send a legal notice first asking the arrears due of leave encashment
If the company replies to the reason stated by them already they are liable to show you a document which intimation signed by the employees.
What was your post if it was in a managerial level you have to approach a civil court, as the labour courts do not have jurisdiction
If the company refused to pay you , you should file a recovery summary suit for the dues with interest and litigation charges.
sending notice is the first step , if the company agrees to it the matter will be resolved with your payment or if the company refuses to pay then a civil suit has to be filed to recover the money.
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
5.0 on 5.0
1. A Company cannot take unilateral decision in respect of Encashment of Privilege Leave without taking into consideration the views and confidence of its employees also. Since you  have not been  informed or intimated of this change in writing, you are entitled to avail Encashment of PL.
2. Arrange to send a legal notice to the HR of the Company to act forthwith to pay you the Encashment of Privilege Leave at your credit as on the date of your relief from the Company.
3. Company has to have the record for having paid the Encashment of PL to its employees during the current financial year.
Shashidhar S. Sastry
Advocate, Bangalore
1242 Answers
59 Consultations
5.0 on 5.0
Leave encashment is a right equal to the right to property guaranteed under Article 300 A of the Constitution and the same cannot be deprived illegally

2) when employee leaves organisation employee should be entitled to full leave encashment 

3) it is your self earned money . In Jitendra singh vs State of Jharkhand it is held by the supreme court that if employee gained any profit according to rule made by employer it cannot be taken back because that profit is his self earned money and employer acts as trustee only. 
Ajay Sethi
Advocate, Mumbai
23367 Answers
1224 Consultations
5.0 on 5.0
You may issue a lawyer's notice to the employer to ventilate your grievance. If after the receipt of notice the employer does not settle the issue in your favour and to your desire then you may move the competent court to challenge the revised policy. 
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
If your resignation was accepted by the employer and had issued the relieving letter as well as the F&F settlement, you have to represent to the employer in writing by sending your communication b y registered post about the missing allowances that are due to you during your service tenure.
Get his reply stating the said change in rules in this regard i writing.
After that you can issue a legal notice o him demanding his authority to change the rules unilaterally that too on retrospective effect without any intimation to the employees.
Later on you can move court for recovery.
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0

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