Earned Leave cancellation by Company that were kept a side beyond 30days

I work in an SW company based out in India (multiple locations).

7-8 years ago, the company changed the leave policy by limiting the Earned (Privilege) Leave accumulation to 30 days. They stated that beyond 30 days, the leave cannot be carried forward and will be lapsed. The leave accumulated beyond 30 days was moved to a pool called the Extended PL pool and limited to 45 days. Initially, they allowed the use of this extended PL pool, but after 2-3 years, they added restrictions. This leave pool can only be used after consuming all other leave (like CL, PL in the current year pool), for medical/special situations, and with multiple levels of approvals.

Is this kind of restriction legally allowed on PL and in conformance with state labor laws like Karnataka?

Later, the company went through multiple acquisitions, but the above extended PL pool continued until the end of this year. Recently, the company announced that starting from January 1st, they are canceling this extended PL pool and will provide additional leave for Medical/special situations (with multiple level of approvals) from a Special leave pool applicable to all employees. This Special pool was created from PL donations from employees during COVID times.

Is the cancellation of the extended PL pool legally allowed and in conformance with state labor laws like Karnataka? How should one approach such a situation to protect their hard-earned PL leave?

First of all, the leave concerned is earned by the employees, and that is a personal right accrued to them; it cannot be just taken away by an order to that effect. On availing or utilizing it, reasonable conditions can be imposed, but it cannot be said to be extinguished altogether all of a sudden. That is an unreasonable condition and is hence inequitable.

As regards approaching the issue, the employees concerned shall make individual or collective representation against such a move. If the company still persists, then probably the Labour Department has to be involved.