The Madras High Court has ruled that dismissed employees were entitled to encash their "earned or privilege leave" accumulated over the years.
Justice D Hariparanthaman, allowing a petition filed by General Manager of Thanjavur District Central Cooperative Bank, who was dismissed from service, said employees can encash their earned leave on the day of retirement irrespective of the pendency of any disciplinary proceedings against them.
The court heldthat Earned Leave encashment is a right equal to the right to property guaranteed under Article 300 A of the Constitution and it cannot be deprived.
"Hence, the encashment of the same cannot be deprived on dismissal from service," the judge noted.
Petitioner T Veeravinothan was denied the benefit on the ground that only retired employees were entitled for encashment of leave.
Having joined the bank in 1976, he had 138 days of Earned Leave to his credit when he was dismissed in 2010.
The judge directed the bank to disburse the corresponding amount working out to over Rs 2.28 lakh within six weeks.
