Payment for f&f settlement in lieu of notice period

Originally posted by : Abhay Mahajan
	I resigned from my previous firm on 1st July, 2017. At that point of time, the HR policy prevailing is HC 2016. On 3rd July, 2017, a new policy HC 2016 is made effective. My last working day with the firm is 8th August, 2017. My questions are as below: 1. Policy Applicable at the time of relieving As per HC 2015, it is mentioned "The firm will recover the salary or part thereof equivalent to the balance notice period". In the policy HC 2017, the same is written and redefined as " The firm will recover the salary or part thereof equivalent to the balance notice period. Recovery on account of shortfall in notice period will be done at the rate of the basic salary componenet". As per law and standard pracitces, please tell me which policy is applicable to me? 2. Payment for F&F settlement HR Team has had sent me a F&F statement according to which I have to pay ~INR 1.7 lakhs. This calculation is based on shortfall in notice period calculated on CTC component. Now as per new policy it is to be based only on Basic Salary. In terms of calcualtion based on Basic Salary componenst, the amount is ~INR 40,000 only. Please let me know the defination of Salary as in HC 2016, is is no where mentioned that the shortfall will be calculated on CTC component as it states "salary or equivalent". Help me with the issue as I need releiving letter (Expereince letter) from my previous Employer. Can this be challenged in term sof Law or I have to pay the full amount as asked for.

There seems to be ome error in policy numbers.

You may post correct policy numbers.

Generically speaking: The Policy as on date of notice of resignation may prevail.

You have the option of writing back to HR designated person that has supplied the FnF statement to you and attach the said policies abd raise your contentions for reply.

You also have the option to escalate to good offices of appointing authrotiy MD in case errors noted by you and actual erros are not corrected.

The notice period and rate of notice pay both might be covered as per enactments applicable to establishment/employer, employee.

The notice period of 90days and rate of notice pay @CTC may not neccessarily be applicable in your case.

While posting such queries employee should post basic information!

What is this establishment; Commercial, Industrial?

What is its nature of business say; IT, ITeS?

How many persons are employed in it?

What is your designation and nature of duties?

How many persons report to you?

Do you have any power to sanction leave/increment/appoint/terminate/appraise etc etc ?

You are in which state? Since how many months you are working? Are you under probation period or your service is confirmed in writing?

Do standing orders (model/certified) apply to establishment and your designation?

What is notice period as per appointment letter/offer letter and what was notice period tendered by you?

Was ever any stinker, memo, show cause notice on any misconduct issued to you?

Does the establishment have its appraisal system? Do you have copy of signed appraisal forms, matrix, KRA’s, performance date? How was your performance?

Are you a member of employee’s/trade unions?

Has the establishment issued/supplied, offer letter, appointment letter, salary slips of all months, PF number and a/c slips of all years, ESIC card, correct FnF statement, Form 16 as per correct FnF statement, acknowledgment and acceptance of notice of resignation/final resignation, acknowledgment of handover of charge, NOC/NDC……………?

Hello Mr Kumar, Thanks for your reply.

My firm is one of the Big 4 and the nature of Business is Consulting. It has more than 10,000 employees in India. I was a Sr. Consultant there and no one is reporting to me. I dont have any authority / power to sanction nay leave / increment etc.

My base location is Gurugram (Haryana). I worked for around 21 months and I was not under probabtion. As per offer letter, notice period is 90 days. I was evalauated twic during my tenure and got a rating of Meet Expectations and no stinker / memo was issued. I have been awarded with Client Appreciation Award.

Firm has issued all the relevant documents except Experience Certificate which will be provided once I settle down Full & Final Amount.

My concern is whehter the deduction which they have calculated as per F&F statement is genuine ? Whether the same can be challenged ?

As you are saying to write a mail to HR and other officials, I already had wrote those mails. They stick to their decision of deducting it on CTC. But my take in this is no where in any of the policy it is stated that the calculation for shortfall in notice period shall be on CTC.

Also will the new policy which is updated on 3rd July, 2017 (Monday), just after 2 days of my resignation date , i.e. 1st July,2017 (Saturday) be applicable as my last day with the firm is 8th August, 2017 or i will be under the purview of old policy only. Also as the defination of salary which i not there in the old policy and defined as Basic Salary in new policy, so can this be challenged.

You have not clarified the confusion in names/terms of polices, as already pointed.

As per your posts: CTC should NOT apply if it is not inserted in any policy; New or Old.

You have posted that Firm has issued all relevant documents.

Hope these ‘all relevant documents’ include all documents pointed out by me in previous posts. If yes these can suffice as good as ‘Experience certificate’ ……………. Service certificate’, and serve your immediate purpose.

Use these and get your job done for the time being. Apply your goodwill, rapport with next employer. The employer and IT’s personnel in Line Management/HR/ can help you.

If notice pay @ CTC is not applicable, employee can write back that calculation in FnF statement is erroneous and needs to be corrected and correct FnF statement should be supplied.

For the sake of simplicity let us term that there was an Old Policy before you tendered Notice of Resignation and then New policy before you tendered Notice of Resignation.

As per private interpretation post resignation and FnF statement the HR person and now other officers as posted by you are using the Term CTC.

CTC is abbreviation: Cost to Company that may include anything as per imagination/assessment by person that has drafted/approved say; some coupons etc etc 

CTC is not term for Salary, Basic Salary, Gross Salary. Gross salary is usually; Basic Salary + employer’s contribution to PF, ESIC……

SO Salary/Basic Salary, Gross Salary are all different terms.

CTC annexure does show Basic Salary, Gross Salary……………

In your case might have shown just; Salary, Gross Salary……………

Check if it shows Salary that is = Basic Salary then highlight and stake your claim, as per IT.

The provisions of Old Policy should apply, since as per your own post your establishment updated and uploaded new policy, after you tendered Notice of Resignation. 

CTC should not apply if it is not inserted in any policy; New or Old.

The employee can take advantage of beneficial provisions of various applicable enactments/rules etc etc