Forced resignation and deduction of approved leaves during full & final settlement
Apr 30, 2026
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Employment Law
► I was working in a private company where I was asked to resign immediately under the name of a layoff and was given same-day relieving. I was verbally assured one month’s salary.
During my last working month, I had taken medical leaves which were properly informed and approved by my manager/HR. The salary for those days was already credited in my account through the regular payroll.
However, at the time of full and final settlement, the company is now stating that those leaves will be adjusted against my earned leave (EL) balance and they are planning to deduct the salary amount accordingly.
When I questioned HR, they said that since I am no longer in the company, they are applying leave policy differently and only limited leaves are allowed per month. They also stated that asking me to resign under layoff is legal.
I want to understand:
Is it legal to force resignation in the name of layoff?
Can the company change already approved and paid leaves and deduct salary later?
What legal action can I take to recover my dues?
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