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Neha Kapoor (Account Manager)     01 June 2013

Issues with full & final settlement with employer

Hi,

Am having serious issues in my full & final settlement with my previous employer as follows :

- As per my contract, my notice period was one month out of which I had served 25 days that is a shortfall of 5 days. In my full & final settlement (since leaves cannot be adjusted) my employer has deducted my gross salary for these 5 days whereas as per my understanding the deduction should have been on basic. The question is "Is there any law which clarifies this that the shortfall in notice is on the gross or basic salary or it varies and is as per individual contract ?"

- Secondly, since am into sales, major part of my slary comes as reimbursements which is also a part of my CTC . However, at the time of leaving the organisation I had claimed the reimbursements for the current month (March'13) along with the supporting bills. Since, my last working day was 15th April'13, that time I was told that this would come along with my full & final settlement of dues. Later, now I have not received my reimbursements with my final dues (amount around 20k). Upon inquiring I was told that no claims have been received by the management and since these dues were till March'13 only hence now it has lapsed. The issue is I do not have any scanned copy or proof of the claims. Please suggest if there is any law or where should i file a complain for the redressal of my grievance ?

Please this is extremely urgent , request advice.



Learning

 2 Replies

SRISHAILA.DHARANI (Advocate&consultant)     01 June 2013

Is there any law which clarifies this that the shortfall in notice is on the gross or basic salary or it varies and is as per individual contract ?" -- It will be as per your contract.Generally, it will be deducted from the gross salary.


Please suggest if there is any law or where should i file a complain for the redressal of my grievance ?  -- First issue a legal notice to them and there after, file labor dispute before th labor court, of your place.

Please contact me to do the needful.

sridshaila,advocate,bangalore,9741425514,sdharani120@gmail.com

Kumar Doab (FIN)     03 June 2013

You have initiated the termination by notice of resignation and since you have not served full notice period you have caused a breach and have to compensate by tendering notice pay.

The notice pay/compensation @ Basic, Gross, CTC should have been clearly stated in exit clause of the appointment letter, standing orders of the company.

If it is not defined then it should be Basic pay.

The notice pay/compensation should be same for employee and employer: equitable discretion.

Therefore you may go thru the appointment letter, standing orders carefully.

In ID Act a mention of Notice is made that an employer is to give to employee in case of Closure of the establishment, Retrenchment, discharge…………..and in such case payment in lieu of notice is Basic + DA………..

Other version is since employer disburses OT, paid leave, Bonus, Gratuity @ Basic + DA, retrenchment compensation,…………..  therefore notice pay may also be calculated @ Basic + DA.

Lay off/retrenchment compensation is stated in standing orders, appointment letter………therefore these may be referred to check on rate of notice pay also.

And that pay means Basic pay (fixed part of the pay), DA……………. 

You may check if paid leave is encahsed in FNF statement/settlement it is calculated at what rate.

One more point is that employer (good offices of appointing authority, MD, Chairman, Company Secretary……..HR/Line management is not employer and they are other employees in the company) can waive off the notice pay.

Therefore if you can peruse and convince notice pay may be waived off.

 

Another point is that as per IESO Act 146 Rule 13/Model Standing Orders the probationer, temporary workman is not entitled to notice, hence no notice period and notice pay is applicable.

If your establishment is covered under Shops and establishments Act of the state then you may go thru the Act. For some states notice period for service below ……………….. months is NIL.( e.g. Delhi below 3 months)

 

-----------The amounts mentioned in the CTC are contractual obligation on the company.

If bills are not submitted your company may disburse but may ad the amounts in taxable component, and you may not get the IT relief.

If the manager to whom you have submitted the bills has not forwarded to HO then you may need to produce some witness, evidence that bills were submitted.

The manager may forward the details how your bills were forwarded to HO.

You may look at alternatives to obtain certified copy of the bills from the sources which issued the original bills.

If you can you may try and record the transaction ( visual) during which the manager admits that you had submitted the bills to him.

Usually in companies some excel sheets are created each transaction.

You and your manager may rely on these.

If the manager admits bills were received and forwarded then you are not at fault.

You may submit a carefully structured representation to good offices and proceed as deemed fit at your end.

 

 

 

 

 


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