Dear ANNONYMOUS
Am reproducing extract of act applicable in Gujarat.
Hope this will clarify position with regards to accumulation of EL and encashment.
You may , in case you so want go to labour court to seek redress.
Col.Rathi
Section 35 - Leave
________________________________________
1[(1)(a) Subject to the provisions of clause (b), every employee who has been employed for not less than three months in any year, shall for every 60 days on which he has worked during the year be allowed leave, consecutive or otherwise, for a period of not less than five days;
(b) every employee who has worked for not less than two hundred and forty days, during a year shall be allowed leave, consecutive or otherwise, for a period of not less than twenty--one days :
Provided that such leave may be accumulated up to & maximum period of2[sixty-three days].
Explanation.--The leave allowed to an employee under clauses (a) and (b) shall be inclusive of the day or days during the period of such leave on which a shop or commercial establishment remains closed under section 18, or on which he is entitled to a holiday under sub-section (1) of section 24 or section 31.]
3[(1A) Every employee who has accumulated leave shall, when he goes on leave for a period of not less than twenty-one days, be entitled to surrender, out of the balance of leave remaining to his credit on the commencement of his leave, any period of leave, not exceeding twenty-one days; and such employee shall, for the period of leave so surrendered by him, be lentitled to payment of wages as if the leave so surrendered had been allowed to him under sub-section (1) :
Provided that no employee shall be entitled to surrender leave under this sub-section more than once in any period of two years.
(1B) In addition to the leave permissible under sub-section (1), every employee shall be entitled to leave with wages as follows :--
(i) casual leave for seven days in a year,
(ii) leave on medical grounds for not more than seven days in a year, and
(iii) leave for not more than four days in a year on any of the days which the State Government may, by notification in the Official Gazette, specify to be the National and Festival holidays.]
(2) If an employee entitled to leave under sub-section (1)4[retires, resigns or]5[* *] is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect of the leave.
(3) If an employee entitled to leave under sub-section (1)5[* *] is refused the leave, he may give intimation to the Inspector or any other officer authorised in this behalf by the6[State] Government regarding such refusal. The Inspector" shall enter such intimation in a register kept in such form as may be prescribed.