A colleague’s LWD was in March 2026, received her FNF settlement in April 2026, after 3 weeks as per firm’s Separation Policy.

The new labour code, applicable from 1.4.26 has changed the FNF settlement timeline to 2 working days and Leave encashment calculation - denominator changed from 22 to 30 days, which has reduced her leave escashment by Rs. 35,000.

Since FNF separation timeline followed org’s Separation Policy, why is leave encashment calculation following new labour code?

What to do?

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