Rules regarding Full and Final Settlement
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Rules regarding Full and Final Settlement

Preeti Jawadekar Started The Discussion:

Dear Seniors
Can you please elaborate if there are any rules prescribed by any laws regarding preparing full and final settlement of an employee? Or is it depended on Management policies? If there are no specific rules / policies related to full and final settlement what are the factors that are to be considered while preparing full and final settlement

hr@vansonengineering.com - Member Since: Apr 2009
Dear Priti,
During Full and Final Settlement, You need to consider the leave (Privilage Leave), Bonus, Gratuity (If completed 5 yrs), and amount if any for the notice period. Rules may varied company to company.

regards
Prakruti

pchiranjeevi - Member Since: Mar 2010
Hai sir If an employee is resigned and relieved in his trainee period, then he is eligible for PL’s and Bonus. He couldn’t complete atleast 6 months also. Chiranajeevi

saiseven - Member Since: Dec 2011
Dear preeti
It is not that the policy relating to full and final settlement works in vacume or on the whim of the management. The full and final settlement comprises settlement of all retiral benefits like P.F and gratuity, leave encashment, salary arrears if any and retrenchment compensation, if any payble etc. Therefore the procedures and time lines for payment of these dues are prescribed by the relevant statutes like the P.F Act or Gratuity Act or the Industrial Disputes Act or the Shops Act or the Factories Act etc. You need to go through them for a valid full and final settlement leaving no scope for raising disputes latter.

B.Saikumar
HR & Labour Law Advisor.
Mumbai
09930532927

asthanasantosh28@yahoo.in - Member Since: Aug 2011
Dear Sir (s)
I shall be forever grateful if you reply of following...

1)Can an employee get deprived of his remote Location Allowance after service of two years, without any notice, circular, Office order or transfer Order? Even though he is working in same location and designation in the same Company. Employer has right to do the same?
2)If company offer and appoints someone on an special duty/leave pattern like 60:30 on/off, and he changed that special duty pattern without informing to the employee after completion of two succesive years, and when employee quit the company and asking for encashment of his balance/earned leaves, company tells him your duty pattern was changed from last year. Then Company has right to do the same? Even though his salary slip shows his duty pattern is 60:30
3)Can an employee ask for bonus and increment after confirmation of his service in the company? The gross salary was 12,500/- PM +30% North east allowance. (Basic salary was 7,300/-), designation Transport Officer.
4)Is company has right to give bullshitting/ threatening to the employee to continue his service even though he is not getting his committed allowance apart from no increment no bonus in his salary.
5)Is there some other way to collect his balance leave encashment and North East Allowance from employer, without taking any legal remedy?

I shall be highly obliged if someone give a right suggestion.

Thanks & Regards
S.K.Asthana
0956880177

srividyakarnati - Member Since: Jan 2009
Hi Preeti,

Any F & F, please consider following things
1. Last working Day and served notice period or not
2. No. of days worked in notice period
3. LOP/ absents in that notice period
4. OT
5. Leave (Privilege Leave), Bonus, Gratuity (If completed 5 yrs)
6. Any dues
7. Tax
8. Check for bonds (training bonds)

rgds
Srividya

Preeti Jawadekar - Member Since: Jan 2011
Quote:
Originally Posted by saiseven View Post
Dear preeti
It is not that the policy relating to full and final settlement works in vacume or on the whim of the management. The full and final settlement comprises settlement of all retiral benefits like P.F and gratuity, leave encashment, salary arrears if any and retrenchment compensation, if any payble etc. Therefore the procedures and time lines for payment of these dues are prescribed by the relevant statutes like the P.F Act or Gratuity Act or the Industrial Disputes Act or the Shops Act or the Factories Act etc. You need to go through them for a valid full and final settlement leaving no scope for raising disputes latter.

B.Saikumar
HR & Labour Law Advisor.
Mumbai
09930532927
Dear Saikumar Sir
Thanks a lot on your valuable information.I would still like to know that if in the appointment letter it is not mentioned that the company will deduct say 15 days for not completing clearance or not taking dues and still they are deducting then is it correct

saiseven - Member Since: Dec 2011
Dear preeti

Your query is notclear as to what is not completing clearance or not taking dues. Further also see whether your company's plocy covers such acts on the part of the employee.

B.Saikumar

reliablerishihr - Member Since: Sep 2011
dear sr. and specially Mr. B.Saikumar,

there is a query regarding full and final settlement of an employee in a pvt Ltd. company, if the company has formulated such type of CTC structure in which Gratuity is a part of monthly CTC. then at the time of full and final settlement, should that employee be given that gratuity part as well which was a part of his monthly CTC (over and above gross salary) inspite of the no. of years of service whether it is 2,3 or 5 years or not.
Becoz normally companies gives gratuity for those employee who worked 5 or more no. of years (but i hope in this case gratuity is not a part of their employee monthly or yearly CTC.

please make it clear to me sir.
i'll be really thankful to you.

thanks
Rishipal

saiseven - Member Since: Dec 2011
Dear Rishipal

If the employer is deducting any amount from your salary towards gratuity which is not envisaged under the Gartuity Act in the guise of CTC, then the employer, in my view , has to refund that amount at the time of F&F settlement even though you have not completed five years of service since it is your money to which you are enetitled.Otherwise, no settlement of gratuity is expected when you leave the service before completing five years.

B.Saikumar
HR & Labour Law Advisor
Mumbai



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