Leave Encashment Is A Right Of An Employee

The Bombay High Court while hearing the plea of two former employees in Writ Petition No. 12161 of 2019, who sought encashment of their privilege leave accumulated over the years of their service, observed that depriving an employee of leave encashment is violative of Article 300A of The Indian Constitution. The Court stated that the employee has chosen to accumulate his earned leave to his credit and encashment becomes his right. The employer cannot deny employee of such right. The right to leave encashment is a statutory right which cannot be forfeited by explicit statutory provision. The court further observed that pension, gratuity and leave encashment are rights that cannot be deprived without due process of law. Resignation would not negate the right of leave encashment that the employees would have had at the time of retirement.