Dear All,
I have a query on FnF settlement which happens when employee leaves the company.
My wife joined company A in May 2015. As per the terms and condition of the contract every month 4000 was getting deducted as a retention money. As indicated in the appoitment letter it was mentioned that if employee resigns within 6 months, he/she will not be eligible for this amount accumulation. And if resigns after 6 months, eligibility for 50% of accumulation and 100% after completion of one year.
Now this company had transited to some Pvt. Ltd. company B in Sept, 2015 with changed salary structure. Now they had PF, Esic etc. But the retetion money is rephrased as yearly service bonus of 24000 as per new appointment letter. Payment terms of this money is mentioned "as per the company service bonus policy".
Now, when this transition occured, naturally previous terms and condition voids. We asked to settle the accumulated retention money of 16000, for which they replied that it will be settled either completion of one year or after your resignation.
My wife resigned in Feb, 2016 and served the full notice period. Here is the twist, in FnF settlement the employer only 50% (rs 8000) of the retention money by saying that she resigned before a year as per the old company A appointment letter. and for service bounus of new company B he mentioned that it is a yearly component and cannot provide on prorata basis. So, ultimately we are in a loss of (8000 of coampany A) and (16000 of company B).
She signed on the FnF settlement. Please guide us what are the other options we can look for. Or what employer has done is right. Let us know in case you need any other information.
Thanks in advance.
Kartikeya