Full and final settlement with leave without pay
aditya
(Querist) 12 June 2013
This query is : Resolved
Hi sir,
My questions are related to full and final settlement:
1) For the salary to be paid for the notice period duration, is monthly bonus to be included or only basic salary is to be paid by the employer.
2) For the pending salary of previous month, before parting ways, bonus is to be paid or only basic salary?
3) For the leaves without pay settlement after resignation, are the leaves deducted from number of working days in a month i.e. 23 or total number of days in that month i.e. 30 or 31?
Kindly clarify above points.
Thanks
Rajendra K Goyal
(Expert) 14 June 2013
1 & 2 ) If equal monthly bonus is paid every month it should be added / paid.
3) Generally the pay is disbursed after deducting leave without pay in the month it is paid after this adjustment. In some organizations month for such recovery is counted for 30 days, and recovery amount for leave without pay is calculated accordingly.
Raj Kumar Makkad
(Expert) 15 June 2013
I do endorse the advice of Rajender Goyal.
aditya
(Querist) 15 June 2013
Thanks Rajendra and Raj. Further clarification needed on this.
1) For 1&2, if bonus according to contract is mentioned to be performance based, and even when the performance is good for an employee and he is paid set amount every month since last 8 months as bonus component, but suddenly company decides to terminate and not pay the bonus component. Is there any legal standing for objecting this?
2) In case there is no written contract or policy from the company of any sorts. Company at the termination assumes a policy of cutting salary of 10 days LOP on 23 working days instead of 31 working days mentioned in salary slip. Can this be objected by employee and have legal backing?
Thanks
Rajendra K Goyal
(Expert) 17 June 2013
Performance based bonus can not be claimed as a right as per your assessment, Statutory bonus is right. You can raise a dispute before labor officer if less is paid to you. Company can not count a month of 23 days while recovering pay for 10 days.
aditya
(Querist) 01 July 2013
Thanks rajendra for ur help. I have one more query.
If a company X (US based) in their contract says:
"paid timeoff: you will be eligible to accrue upto 10 days of paid time off per calendar year, prorated for the remainder of this calender year"
However company X cant operate in india directly so they collaborate with company Y for payrolls n other calculations. Company Y says:
"Leave: you will be entitled to leaves as per policy applicable to your category of employees, or as legally required"
Now, they agreed that 23 days they cant count so they say that company Y policy is to include weekends in the leaves. However the leave policy generally followed in company X doesn't say anything about inclusion of weekends. And all employees of X follow policy of X and not Y.
And at the time of availing leaves company X did not inform in any way that leave policy of Y will be applicable which includes weekends.
In this scenario they are deducting 18 days for 10 days leaves taken. This seems to me unethical. Is this legally right from company's standpoint? Can i challenge this?
Thanks in advance for your help.
Aditya
Rajendra K Goyal
(Expert) 01 July 2013
Intervening weekly off is included in the leave if rules of the company are silent about this. Please advise on which dates you were on leave
aditya
(Querist) 01 July 2013
Yes company has been silent about which rules will be applicable, infact there are no rules about leaves in company X, and it has been taken informally so far, but now at the time of relieving new rules are being assumed. And company never informed about the policy at any point in time whatsoever.
Leaves taken such that i went on leave after attending office on friday( from monday to friday and next monday to thursday) in all 9 days.
Second instance was i went on leave on friday post office and back on tuesday next week. In all 6 days.
Most companies dont include weekend in the leaves. However if they have to include, it should be informed prior to taking leaves.
Another point is company X has never included weekends in leaves for other employees. They are considering a special case for me as they have been silent about the policy.
Kindly suggest.
Thanks
Aditya
