Justice M.K. Thakker of the Gujarat High Court upheld the labour court’s held that earned leave encashment is akin to salary and constitutes an employee’s property. The court highlighted that depriving someone of their rightful property without valid statutory provisions infringes on constitutional protections. Justice Thakker stated, “If an employee has earned leave and chosen to accumulate it, encashment becomes their right, and no authority can infringe upon this right without lawful justification.”
The employee a junior clerk joined Ahmedabad Municipal Corporation (AMC) in 1975 and retired on 30 April 2014. The corporation refused to pay his earned leave accumulation on the ground that the employee was on unauthorised leave after submitting his resignation so became ineligible for the benefit. Labour Court passed the award in favour of employee directing the corporation to pay the leave encashment amount to employee.
The Gujarat High Court rejected AMC’s stance, directing the civic body to comply with the labour court’s ruling. The court reaffirmed that employee benefits, such as earned leave encashment, are accrued rights protected under constitutional provisions.
Source : techgig.com
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