These are the Ministry of Labour and Employment's answers as of 16 March 2026. The FAQ distinguishes a worker's Code-based rights from potentially more favourable state-law benefits; it is not a universal payroll calculator.
Rule summary · verified 2026-10-10
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| Topic | Official summary |
|---|---|
| Carry-forward | A worker may carry forward up to 30 days; leave applied for but not granted may be carried forward without that limit |
| Encashment | The FAQ says a worker is entitled to leave encashment and states no maximum encashment limit under the OSH&WC Code, 2020 |
| Refused leave | Leave above 30 days that was applied for but not granted may be encashed |
| State law | The Ministry says an employee is entitled to a more favourable state-law benefit where it applies |
What changed since last year
The FAQ published in 2026 explains the Labour Codes implemented on 21 November 2025; check the applicable state law rather than assuming it was displaced.
In plain language
Keep the leave ledger, the dated application, the employer's response, and the applicable state rule. Ask HR to identify whether the policy applies to you as a worker under the Code.
Start with the leave ledger
Download or request the balance as of a named date, with separate lines for earned, casual, sick, compensatory, and other leave categories. Check opening balance, accruals, usage, lapses, carry-forward, and any manual adjustment. A single portal total may conceal different rules for different leave types. Compare the record with applications, approval emails, attendance, and payslips. If the displayed balance changed after resignation or transfer, ask which policy version and cutoff date were used. Keep screenshots or a dated export before access to the employer system ends, while respecting the employer's data rules.
Distinguish a policy benefit from a statutory right
The Ministry's Additional FAQs discuss leave under the Occupational Safety, Health and Working Conditions Code and acknowledge that a more favourable applicable state-law benefit may matter. That wording is not permission to assume the same entitlement for every role. Establish whether your work and establishment fit the relevant legal category, whether another state enactment governs, and whether the employer policy grants a better term. Ask HR to cite the policy and legal basis separately. When two documents appear inconsistent, record the versions and ask for a written explanation rather than choosing the line that produces the larger number.
Ask how the payable amount is built
A leave balance and a cash value are different records. Request the salary component used, the divisor, the number of encashable days, and the date at which the rate is frozen. Confirm whether the employer treats weekends, holidays, partial days, or carry-forward differently. This page does not supply a universal rupee formula because the inputs can depend on the governing rule and policy. If the final settlement offsets a leave amount against notice recovery, ask for both calculations as separate lines. A clear reconciliation prevents an apparent net total from hiding a disputed leave balance.
Preserve the application trail
Where leave was requested but not approved, retain the date submitted, the requested period, the manager's response, and any operational reason given. The Ministry FAQ distinguishes applications that were not granted from unused leave in its explanation of carry-forward and encashment. Do not rewrite a request after the fact or infer approval from a calendar entry. If a manager gave verbal direction, send a neutral confirmation through the ordinary workplace channel. A contemporaneous record helps explain why days remain unused and gives payroll a factual basis to reconcile the ledger.
Illustrative scenario: a balance changes at exit
Illustrative scenario: an employee's leave portal shows one balance before notice and a smaller one in the draft final statement. The employee requests the ledger's opening amount, each leave day booked during notice, the category that was encashed, and the policy cutoff used. Payroll finds a late attendance import and corrects the balance. The employee checks the revised statement against the application history before agreeing to the total. The point is not that every reduction is an error; it is that each adjustment should have a date, category, and explanation that can be checked.
Avoid applying this summary outside its scope
The source is a dated labour-code FAQ, not an individual ruling and not a substitute for state rules, contract language, sector-specific exemptions, or a current employer policy. It does not decide whether a person is a worker under the Code, whether a particular category of leave is encashable, or how wage components are valued. If the employer operates across states, use the work location and applicable establishment details rather than headquarters alone. Raise a precise question with payroll or a qualified adviser and keep the answer beside the leave record that it explains.
Request an itemized exit statement
A useful final-settlement query names the leave year, category, balance date, accrual rule, carry-forward limit, days used, and days paid. Ask payroll to identify any adjustment created by an attendance import or approval entered after the cutoff. Preserve the leave policy version that was active during the relevant period, not merely the latest intranet page. If a balance was transferred during an internal move, ask which employer entity owns the historical liability. These details turn a disagreement about a number into specific questions that can be answered against records.
Questions to check
- Should I rely on the balance shown today?
- Save a dated ledger and compare it with applications, accruals, and the policy cutoff used for exit.
- Is every leave category cashable?
- This page does not say that. Confirm the category, applicable law, and employer policy.