LTA and Medical

bunny19 · #1 (**permalink**) 21-05-2008, 11:22 AM

Dear all,

Please help in solving the below issue

One employee in our company worked for 11 months . and resigned
Now he is claiming his LTA and Medical ALlowance in his full and final settlement

Problem is , we have a rule that LTA to be claime donly after completion of 1 year where as this person resigned after 11 months

In appointment letter we have asked for 3 months notice or pay in leiu of money.
teh person has not not any notice and he wants immediate release

PLease tell me , should we stop his LTA and Medial and cover under shortfall of notice period?
Can we even stop the PF amount?

I dunno anything , please help

Amatya007 · #2 (**permalink**) 21-05-2008, 05:42 PM

Hi,

As you have mentioned that the employee has left the organisation with immediate effect, you can recover the amount in lieu of notice period.

Could you let me know whether the LTA & Medical are the part of his CTC or not.
If yes, while doing the full the final settlement, you have to give the unclaimed amount as taxable salary. ( As per your company policy the employee has to claim LTA after completing 1 yr, but he has resigned so settle it with F&F)

AMATYA

bunny19 · #3 (**permalink**) 22-05-2008, 03:12 PM

Dear Amatya

Thanks for reply

If the employee not ready to pay the amount in lieu of notice period., in that case can we adjust his LTA and Medical amount for that

I mean can we adjust the LTA and Medical amt what we have with the amt he has to pay

LTA and MEdical are mentioned as part of CTC

Regards
Neelima

Amatya007 · #4 (**permalink**) 22-05-2008, 03:20 PM

Dear Neelima,

You can recover the amount from that part which is payable to him.

LTA and Medical is payable to him along with salary, so you can adjust it with short fall of notice period.

AMATYA

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