LTA Applicable for confirmed employee who has left co

LTA APPLICABLE ?


Hi,

I was working in a company from May 2007 to Mar 2008. The offer letter included LTA in my CTC. I had left the said company in March 2008. While providing my full and final settlement, they have not included pro-rata LTA stating that LTA can be claimed only after 1 year.

I joined the company on May 9 2007 and was on probation till Nov 2007 and after that I was confirmed. I left the job in March 2008.

I have enclosed an attachment of my salary break-up. Please refer the same. For your information, the said company where I was working is a private bank and I was working in Mumbai and I was working as a Manager.


After putting my resignation and before the full and final settlement, I had orally asked HR for payment of pro-rata LTA. However, the HR informed that this is applicable to employees who have completed one year of service. They have not included pro-rata LTA in full and final settlement stating that it can be claimed only if a person has worked for more than 1 year.


My appointment/offer letter of my company stated the following w.r.t LTA.

You are entitled to claim LTA only after completion of one year of service in the company.

Can you confirm with the above details provided “ whether I can claim LTA from my previous company and if they inform that I am not eligible, how should I proceed further in the matter to claim LTA. There must have been some case or judgements or Act, which I can refer if it is applicable. Further, whether a company can keep such restrictive clause.

Thanks & Regards
Srinivas Mani
09833418230
Email :shrinivasmani@yahoo.com

Attached Files

SALARYPDF.pdf (7.2 KB, 90 views)

Hi Srinivas,

As per the clause in your appointment letter, this becomes a standing order and hence, you cannot claim LTA.

However, You can request you co. to consider your case as a special case.

In your salary details also, LTA is not shown in monthly salary. So, the company is very clear.

Give it a try, all the best!!

Regards

Dear Mani,

Employees are eligible for LTA only after completion of one year service and has to apply for a leave to avail LTA as per company rules. This is not part of yous salary components but its perks which is subject to fulfillment of certain conditions and in your case its completion of one year. which you have not served to the bank.

It is therefore you are not entitle for any amount against this account even though your appointment letter has mention LTA which is subject to rules as applicable to all employees.

Regards

Sawant

Dear Shrinivas,

LTA as shown in your salary structure is a part of your Annual Salary, and if any employee decides to leave the company before completing one year as mentioned in the Appointment letter, the employee is applicable for LTA on pro rata basis.

As this is a part of your salary package company cannot hold your LTA amount. If required you can show them the LTA act, download it from net.

CHeers!!

Archna Khurana
GM- Human Resource

Yes Shrinivas,
I am fully in support of Ms. Archana.

In today's scenerio the salary is negotiated in terms of CTC which includes the LTA part also. Although an employee can claim the LTA part only after the completion of One year of service with the company, but that applies only in that case when the employee is in service, but in case of an employee leaving the company, he / she gets the pro rata LTA in the full and Final settlement.

__________________
Everyone thinks of changing the world, but no one thinks of changing himself.....

Dear friends,

There is no labour law or any case law for the reference to justify any of the above arguments. There are many logics and interpretations depending on what readers understand from the circumstances so expressed.

CTC is cost to the Company for employment doesnot mean employee is eligible automatically all components of the salary so expressed in terms of CTC are to be earned within the prescribed rules framed for entitlements. As far as leave travel allowance is concern the purpose of leave travel is to allow employee annual vacation with family after working one year with an employer for his social and family needs to visit home town or trael all india. But for both eligibility criteria is mentioned in the rules for LTA, In Government or Public Sector its called LTC which is of two kind.
1. ALl India Travel LTC- Once three year
2. Home Town LTC - Once in every year on complition of 12 months service.

There are certain rules which regulates these entitlements which has to be seen Not only in Government but also in the private sectors companies its being part of practice as per company policy.

I hope this will remove the doubts ..

Regards

Sawant