Karnataka High Court, in G. Linganagouda vs. General Manager, Karnataka Gramina Bank (WRIT PETITION NO.100339 OF 2025 (S-RES)),recently ruled that employers cannot withhold leave encashment from a dismissed employee, as it constitutes a property right under Article 300A of the Constitution. The court emphasized that once earned, terminal benefits—including leave encashment—become the ’employee’s property and cannot be arbitrarily withheld.
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