Encashed leaves akin to salary, denying it violates rights, says Gujarat HC
TIMES NEWS NETWORK 03.01.2025
Ahmedabad : Depriving an employee of leave encashment earned by him is violation of constitutional rights, Gujarat HC said, dismissing a petition by Ahmedabad MC against a labour court’s order directing the civic body to pay leave encashment dues to a retired employee. Upholding the labour court’s order, Justice M K Thakker said: “Leave encashment is akin to salary, which is property, and depriving a person of his property without valid statutory provision is a violation of the provision of the Constitution. If an employee has earned the leave and chosen to accumulate his earned leave to his credit, then encashment becomes his right and in the absence of any authority, that right cannot be infringed by the petitioner corporation.”
Sadgunbhai Solanki had joined Ahmedabad MC as a technical department employee in 1975. He was a junior clerk in 2013, when he was demoted to the post of helper as he did not clear a departmental exam for promotion. Solanki tendered his resignation on March 5, 2013, but MC did not respond to his resignation for seven months. It set a one-month notice as a condition to accept his resignation. However, no resolution was reached and Solanki superannuated on April 30, 2014. When Solanki demanded encashment of his earned leave, which came to about Rs 2.80 lakh, the civic body refused to pay.
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