05 April 2010
A company intends to cahnge its model of operations and has given notices to employees for termination of its services after three months. It wants its employees to avail the balance leave standing to credit of their account in the next 3 months and in case of non availment will not pay the employees the encashment. can the company do so legally.
06 April 2010
I will break the reply in a few parts: 1) Changing model of operations and giving notice to employees (not workmen as per Industrial Disputes Act) for termination of service after 3 months is valid. 2) Asking them to avail balance leave standing to their credit is not valid. 3) Forfeiting the amount payable for the privelage leave that was given to them as per the terms and conditions of appointment is not valid.