New labour code: What changes for your earned leave and encashment under the latest laws — explained

The OSH Code introduces standardized leave policies, allowing workers to carry forward and encash excess leave. Implementation awaits state-specific rule finalization. The code benefits workers but excludes higher-earning managerial roles. Denied leave can be carried forward and encashed, enhancing employee rights. Under the OSH Code, earned leaves applied for by workers but not granted by the employer can be carried forward without any limit. Such leaves exceeding 30 days can be encashed by workers on demand annually at the end of the calendar year, according to Minu Dwivedi, Partner, JSA Advocates & Solicitors. Currently, under State-specific laws, employees can encash leaves at the end of their employment. However, in certain states like Telangana, non-exempt employees are entitled to encash earned leave during the subsistence of their employment. “Now, under the OSH Code, all employees qualifying as ‘workers’ are entitled to encash, on demand, accumulated annual leave in excess of 30 days at the end of the calendar year,” Dwivedi said. Read more