The High Court also said that the rights of the employee cannot be ignored and the corporation will have to follow it. Earned Leave Encashment is the constitutional right of the employee.
The Gujarat High Court has termed depriving an employee of Earned Leave Encashment as a violation of the constitutional rights of the employee. While disposing of the petition filed by the Ahmedabad Municipal Corporation challenging the decision of the Labor Court, the High Court made this remark and ordered the Municipal Corporation to give the benefits of leave encashment to the employee.
The Gujarat High Court upheld the order of the Labor Court and said that leave encashment is similar to salary, which is a property. Justice M.K. Thakkar said that depriving a person of his property without any valid statutory provision is a violation of the Constitution. The court clarified that if an employee has earned leave, it is his right to encash it and this right cannot be violated by the corporation.
This was the case
This case is related to Sadgunbhai Solanki, who joined the technical department of Ahmedabad Municipal Corporation in 1975. Till 2013, Solanki was working as a junior clerk. However, he was demoted to the post of assistant due to failure in the departmental examination. He resigned in March 2013, but the corporation delayed accepting it by seven months. Solanki retired on 30 April 2014.
Order of Labor Court
In 2018, the Labor Court had directed the AMC to pay leave encashment amount of Rs 1,63,620 and a fine of Rs 1,000 to Solanki. The AMC had filed a petition in the High Court against this order, which has now been dismissed.
Court’s comment
The court said that earned leave encashment is a statutory right of an employee and not giving it is a violation of Article 300A of the Constitution. The court also said that the rights of the employee cannot be ignored and the corporation will have to follow them. This decision is to protect the rights of the employees and remind the institutions of their responsibilities.
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