Denying Leave Encashment Violates Constitutional Rights: Gujarat HC
Denying Leave Encashment Violates Constitutional Rights: Gujarat HC
The Gujarat High Court has ruled that denying an employee their earned leave encashment violates constitutional rights. The decision came as the court dismissed a petition by the Ahmedabad Municipal Corporation (AMC) challenging a labour court’s order to pay leave encashment dues to a retired employee.
Justice M K Thakker upheld the labour court’s directive, stating, “Leave encashment is akin to salary, which is property, and depriving a person of his property without valid statutory provision violates the Constitution. If an employee earns and accumulates leave, its encashment becomes their right.”
The case involved Sadgunbhai Solanki, who joined AMC in 1975 as a technical department employee. In 2013, Solanki, then a junior clerk, was demoted to helper after failing a departmental exam. He resigned on March 5, 2013, but AMC delayed acceptance by seven months, requiring a one-month notice period. No resolution was reached, and Solanki retired on April 30, 2014.
After retirement, Solanki sought encashment of his accumulated leave, worth ₹2.8 lakh. AMC denied the request, claiming Solanki was on unauthorised leave after tendering his resignation. The high court rejected AMC’s argument and directed the civic body to honor the labour court’s order.
The judgment reinforces employees’ rights to claim benefits accrued during their service. It emphasizes that entitlements like leave encashment are protected under constitutional provisions and cannot be denied without valid authority.
