New Labor Codes 2026: At the time of joining companies or institutions, it is often told how much leave you will get in a year, but in reality there is so much work pressure that people are not able to take that much leave. In such a situation, the leave ends without being used. However, this will not happen now. The Central Government has made major changes in the rules of Leave Encashment under the New Labor Code.

Under this, now employees will be able to convert their extra leave into cash (encashment) every year. According to the old rules, usually withdrawal of the remaining leave money was allowed only at the time of retirement or after leaving the job, but now this will not happen. This is a relief news for the employees.

What is the new rule?

Due to this important change under the new Labor Code, now employees can encash their remaining holidays at the end of the year. Let us tell you that under the Occupational Safety, Health and Working Conditions (OSH) Code, 2020, an employee will be able to carry forward only a maximum of 30 days of earned leave at the end of the year to the next year.

If your remaining holidays are more than 30 days, you will have to pay the money for those additional holidays to the company. Suppose you have 45 holidays left till the end of the year, then 30 days will be added to the next year and you will get the money for the remaining 15 days.

These things are also included in the new rules

• Suppose you have asked for leave and the boss has refused to grant leave, then it will not be counted in the ’30 day limit’.
• The company will have to settle the accounts related to Full and Final (F&O) within two days (48 hours) after the resignation of the employee.
• Earlier it was mandatory to work for 240 days to be entitled to ‘Earn Leave’, but now only after 180 days you will be entitled to earn leave and convert it into cash.

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The wait of 5 years is over, now you will get gratuity even after working for one year; Know the new rule?