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Sanjay   19 June 2021

Leave encashment

Can leave encashment be adjusted against lockdown period. Whether an employee will be considered as absent during lockdown period.


 9 Replies

Sudhir Kumar, Advocate (Advocate)     19 June 2021

very vague query.  You have not even indicated who the employer is (Govt/private)? what are facts?

P. Venu (Advocate)     19 June 2021

Yes, you have not posted the complete facts. 

G.L.N. Prasad (Retired employee.)     19 June 2021

 Query: Whether an employee will be considered as absent during the lockdown period.

In the case of the Central Govt, it is learned that they are treating such lockdown period as leave and also directed state governments to consider for such treating lockdown period as leave.  There are also demands that it should not be treated as leave.  In the case of private organizations, it may differ from company to company as some paid 100% Salary to the lower class of employees, and executives accepted 40% of the salary.  Some worked from home.

This part of the query is vague, ambiguous, and inconsistent: Can leave encashment be adjusted against lockdown period.- 

Yes. there is a demand pending that those who were on leave with Covid, leave encashment has to be permitted.


Sanjay   19 June 2021

I am working in Proprietorship Firm since Nov. 2017.  Annual Leave Encashment of 21 days becomes due in April.  In June/July 2018 and June/July 2019 leave encashment was paid to all staff.  But in 2020 and 2021 it is said adjusted in lockdown period whereas during lockdown work from home was done and for that 30-40% was paid to all staff in 2020 and 2021 also.  But I am not paid even for work from home and it is said that you have not done any work in lockdown hence no salary.  Whereas I have numerous proofs of work from home.  When I raised issue of leave encashment, it is said as already informed to you your performance is not satisfied your service stand terminated.

How leave encashment is adjusted no employee has understood it.  When staff ask from accounts department how it is adjusted, accounts department says "hamari bhi Samajh mayn nahin aaya" but management said it is adjusted. 

 Leave encashment na Milne say Sara staff pareshan Hai per Kar kuchh nahin Sakta, kiyonki nokri Jane Ka dar.

Last year bhi ainsa hua tha aur is Baar fir say vahi repeat ho Gaya.  Last year 1 employee nay isliye job left Kar Di thi kiyonki jab usnay leave encashment ki payment mangi thi to Usay Kaha Gaya tha ki humne "khairat" nahin baant Rakhi Hai, leave encashment lockdown mayn adjust Kar Di Hai.

Mujhe to work from home Ka bhi kuchh nahin Mila aur 21 Din ki leave encashment bhi adjust ho gai according to management, par hamari Samajh to kuchh nahin aaya ki kense adjust ho gai kiyonki paise to milay nahin.

Sir, ye 21 Din ki last year ki aur 21 Din ki this year ki total 42 din ki leave encashment Lene Kay liye Kiya Karen.  Meri monthly salary 20800 Hai.

Please suggest ye 42 din Kay paise aur work from home Kay paise mil sakte hain ya mujhe bhool Jana Hoga.  Aur agar mil sakte hain to kense.

G.L.N. Prasad (Retired employee.)     19 June 2021

निजी नौकरी में मन की शांति चाहते हैं तो अस्थायी नुकसान को नजरअंदाज करें।

Shashikant V. Patil (Lawyer)     19 June 2021

Either you have to go to Labour Commissioner or Labour court to file your claim.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     20 June 2021

File a case before Labour Court with full particulars. Take the assistance of Union in your organisation.

Dr J C Vashista (Advocate)     20 June 2021

The concept of leave encashment is to "pay" for the surrendered earned leave and worked for the period when an employee was entitled to avail "paid" leave.

Period of lock down is an exceptional circumstances where the employer (under directions from authorities) allowed employees to work from home, instead of "physical attendance" in the premises / work place, where ever possible with the sole aim to avoid moving out of their homes/ residence. The employee working from home is considered as good as physical attendance / present / on duty.

Non-payment of the work done by an employee is violation of terms and conditions of "service agreement" where employee has a legitimate claim, which has to be paid by employer. In case the employee did not get salary /wages during the period of WFH claim it through appropriate authority and such period cannot be termed as "leave" for declining its  "encashment"...

It would be appropriate to consult a local prudent lawyer / Union for appreciation of facts, professional advise and necessary proceeding.

T. Kalaiselvan, Advocate (Advocate)     20 June 2021

The Tamil Nadu government has decided to suspend encashment of Earned Leave for its officials, teachers and other staff and has also frozen their dearness allowance at the current level till July 2021.

Under the current rules, Government employees and teachers can surrender and encash 15 days every year or 30 days every two years of their Earned Leave. The government has suspended this facility, initially for a year, in view of the fiscal stress arising from the Covid-19 pandemic, according to the Government Order

All surrender requests and bills pending as on date irrespective of their stage of Sanction and disbursement shall not be processed. In cases where sanction orders have been issued, they are to be cancelled and Earned Leave re-credited to the leave account of the respective employees," said the order issued by State Chief Secretary.

In some relief for Centre government employees who couldn’t avail of the full benefit due to the COVID-induced lockdown in 2020, the Union government announced three new decisions in an Office Memorandum (OM) dated January 7, 2021, the Department of Personnel and Training (DoPT). 

The Min. Finance vide its OM No. F.No. 12(2)/2020-EII(A) dated 12.10.2020 had announced special cash package equivalent in lieu of LTC Fare for central government employees during the block 2018-2021.

With a view of compensate and incentivize consumption by central government employees there by giving  boost to the consumption expenditure, it has been decided    that cash equivalent to LTC comprising leave encashment and LTC fare of the entitled LTC may be paid by way of reimbursement, if an employee opts this for one LTC in the block 2018-2021 considering that the employees are not in position t5o avail LTC for travel any place in India or their home towns in the said block owing to current pandemic and  national lockdown.




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