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Abhijit Ghosh (Consultant)     06 June 2014

FINAL SETTLEMENT QUERY

A PERSON HAD SERVED A PVT LTD COMPANY FOR 6YRS AND DUE TO BETTER OPPORTUNITY HE HAD RESIGNED WITHOUT NOTICE PERIOD OF 60 DAYS. HE HAD 51 DAYS EARNED LEAVE IN HIS ACCOUNT & 10 DAYS OF PAID SERVICE TILL THE DATE OF RESIGNATION.

NOW HR OF THE COMPANY HAVE INFORMED THE PERSON VERBALLY OVER PHONE TO PAY NEGETIVE SETTLEMENT AMOUNT AFTER ADJUSTING 51 DAYS OF EARN LEAVE & 10 DAYS SALARY. THE HR OF THE COMPANY SAID VERBALLY THAT AFTER PAYING THE NEGETIVE SETTLEMENT AMOUNT HE WILL RECEIVE ONLY GRATUITY AMOUNT AND THEY ARE CONFIRMING THAT NO RELIEVING/EXPERIENCE LETTER WILL BE ISSUED AS NOTICE PERIOD NOT SERVED.

CONSIDERING THE ABOVE SCENARIO KINDLY ADVICE: -

1)    WHETHER THE PERSON REQUIRE TO REQUEST HR OF THE COMPAY TO GIVE WRITTEN CONFIRMATION ABOUT THE NEGETIVE SETTLEMENT AMOUNT BEFORE PAYMENT?

2) AFTER PAYING NEGETIVE SETTLEMENT WHETHER THE PERSON IS LEGALLY ELIGIBLE FOR RELIEVING LETTER FROM COMPANY HR POLICY?

(N.B.: AS PER HR POLICY WAS MENTIONED 60 DAYS NOTICE PERIOD OF 60 DAYS SALARY & WAGES TO BE PAID ON RESIGNATION)

3) AFTER PAYMENT OF NEGETIVE AMOUNT CAN THE HR DENY TO PAY GRATUITY AMOUNT?

 

 

KINDLY ADVICE.

 

 


 



Learning

 1 Replies

Kumar Doab (FIN)     06 June 2014

>>>

What is this establishment: Commercial, Industrial, Small Enterprise?
The registration certificate might have been displayed near entrance or you have to find on your own. 
You were located in which state? Does company have an office at your location?
Redg. office of the company is located in which state?

What is trade of this company: IT, Banking etc…..?
How many people are employed in it?

Do the standing orders apply to the establishment and does the company have its certified standing orders (CSO) and has it been extended to your designation or does the Model Standing Orders apply?


What was your designation and nature of duties…?

How long you have worked with this company?



Has the company stated in appointment letter that service conditions shall be governed by say…………………..HR policy, service rules and regulations and do you have copy of .HR policy, service rules and regulations?

 

Did you tender notice of resignation and do you have its acceptance, acknowledgment,POD?

 

ON which date did you separate?

 

Have you submitted any reminders in writing? Did the company reply?

Did it issue any communication on abstainment, absenting, abscondment?

 


This info shall help, hence post it.

 
   

 

 

>>>Did you record the call/meeting (audio/visual)? You should have.

You can even now drive the call/meeting and record.

The HR and employer shall be in trouble.

 You can submit minutes………………………….that you have represented in office (provide details if available):

-- and despite that No Notice of determination of Gratuity and payment was supplied to you and dated Mr/Ms………………………designation…………………………name of company……………address……………………..(phone number/date/ time) stated that………………………Gratuity shall not be paid…………………………..

 ---FnF statement in original under proper seal and signature by hand of the competent official has not been supplied to you, by redg. post, for verification and acceptance by you.

---on dated…………………….. Mr/Ms………………………designation…………………………name of company……………address………………made verbal demand to extract amounts from you and declined to supply FnF statement and stated that no document of service certificate, relieving letter shall be supplied to you………………………….and employer (MD, appointing authority) himself may withdraw such bad, illegal, unlawful demands of employer………………………..

You may highlight the contributions made by you, display of responsibility, character, achievements, appreciations, rewards, awards, and that no stinker, show cause notice was ever issued to you and company should allow you to examine your personnel file and must supply you the authenticated copy of your service card having notes of commendation………………

YOU may add that NO TASKS were pending at your end as on date of notice of resignation you had affirmed in office that routine duties be assigned that can be completed within and upto expiry of notice period tendered by you and to whom you should handover the charge (under proper acknowledgment on the spot).


Salary has to be paid on usual pay day or the employer can be penalized.

FnF wages have to be paid on last day in office or within next 3 days or max. by usual pay day.

 

>>> If Notice pay in lieu of notice period is inserted in appointment letter, contract of employment then it can be the max. amount.


If employee has left unfinished tasks that can cause financial or some other loss then employer may emphasize upon employee to serve the notice period.

 

Not serving notice period is not misconduct.

Resignation can be without permission and acceptance.


Notice period/pay is part of service conditions that may not necessarily be dependant upon T&C inserted by employer in appointment letter/contract of employment drafted by employer.

Notice Period of 60 days may not be necessarily applicable in your case.

The private/internal policies of the employer are not law unto themselves.

The employer and his attorneys say HR personnel/Legal cell are subordinate and servant to the law of the land. The HR/Legal personnel have to stand up against employer and decline to bad, illegal policies, even if it costs the their job, or they can be sued for being party………………..

 

This matter has been discussed in detail in many threads and you can download the judgments too e.g;

 

https://www.lawyersclubindia.com/forum/Whether-notice-period-has-to-be-given-during-probation-91808.asp#.UwDFP0eBmXU

 

 

>>> NO terminal benefit e.g. Gratuity can be withheld, even if employee has not served the notice period. For forfeiting Gratuity the employer has to tender notice and provide opportunity of natural justice and has to issue speaking order. Gratuity has to be paid by employer within 30 days from date of separation or it shall be  liable to pay interest @ 10%p.a, even if employee has not made any application for the payment……………….

The employer shall not take anything on his head and shall transfer it on the head of HR personnel designated to process FnF and Gratuity.

You may emphasize on the word ‘WHOEVER’  and provisions of penalty, punishment, imprisonment in Sec9:Payment of Gratuity Act1972……………………………..

 

You can demand the certified copy of payment certificate issued by LIC (FI that managed Gratuity fund) and amount disbursed by it to establishment and demand full payment without any deduction even if payment by formulae of calculation of Gratuity shows less amounts payable to you. Employer can’t keep a penny from the amounts accrued in Gratuity Fund a/c of employee.

 

{( Basic+DA)/26*15*No. of years in service}

Basic+DA as per last drawn salary.

In any year if you have worked for >6M you may count it as 1Y.

 

The matter has been discussed in detail in many threads and you can download the judgments e.g:

https://www.lawyersclubindia.com/forum/P-f-gratuity-90740.asp#.UqC5qdIW1MA

 

https://www.lawyersclubindia.com/experts/Entitlement-of-gratuity-452536.asp#.UxAfQUeBmXU

 

 

>>> Relieving letter signifies that employee has separated and nothing is due against him.

If HR claims that there are some amounts payable as per FnF then he/she has to supply the FnF statement of acceptance and once the amounts have been paid nothing is pending and hence relieving letter has to be supplied by effective mode of communication e.g. redg. post.

You must not forget demand to demand to supply proper acknowledgment/receipt of cheque issued by you and final FnF statement showing its receipt with number and also Form16 as per correct FnF statement.

 

 

>>> Service certificate has to be issued to all employees.

You may go thru Model Standing Orders; Sec13-18.

 

 

 >>> You may demand to supply the acknowledgment of resignation, acceptance of resignation, relieving letter, service certificate, service card, FnF statement (showing payment of Gratuity-bonus-leave encashment-performance bonus-incentives-etc), form16, PF number and a/c slip of each year, salary slip of each month, NOC/NDC……………………………etc


Attached File : 81828943 model standing orders industrial employment standing orders rules.pdf downloaded: 117 times

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