Supreme Court overturns Sikkim High Court ruling on leave encashment for re-employed retired government employees beyond 300 days under Sikkim Leave Rules
While leave encashment served to reward the extraordinary work ethic of an employee, its application needed to uphold both the legal rights of the employee and the long-term viability of the institution. Courts, therefore, had to interpret leave encashment provisions and related statutes in a manner that protected against undue financial burden on the employer while ensuring lawful entitlements were honored.