Dear All,
Please provide me with some points to consider while preparing the full and final settlement for an employee who has completed the required number of years for gratuity. This includes guidance on handling their PF pension claim. Additionally, I would like to know how to process leave encashment for an employee who has not utilized any leave in a given year and has worked for more than 5 years.
Regards,
Kishore Rathod
From India, Pune
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Please provide me with some points to consider while preparing the full and final settlement for an employee who has completed the required number of years for gratuity. This includes guidance on handling their PF pension claim. Additionally, I would like to know how to process leave encashment for an employee who has not utilized any leave in a given year and has worked for more than 5 years.
Regards,
Kishore Rathod
From India, Pune
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Hi Kishore,
In the full and final settlement of an employee, you need to ask him whether he wants to withdraw his PF or transfer. If he wants to go for a transfer, he can directly contact his current company (the company where he joined after leaving your company). For withdrawal, he needs to fill out two forms which I am attaching here. These forms need to be signed by an authorized person in your company and handed over to the PF office. After submitting them, they will give you an acknowledgment copy which you should keep for further reference. Typically, it should take 60 working days, but it can take longer to credit the PF amount to the employee.
Regarding your next point of leave encashment, it basically depends on your company's policy on how you are encashing the leaves. Most companies encash the leaves based on the basic salary. (Basic salary/30 days * leaves to be encashed) Please check your company policy on leaves and then proceed.
All the best.
Regards,
Sushma
From India, Hyderabad
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1In the full and final settlement of an employee, you need to ask him whether he wants to withdraw his PF or transfer. If he wants to go for a transfer, he can directly contact his current company (the company where he joined after leaving your company). For withdrawal, he needs to fill out two forms which I am attaching here. These forms need to be signed by an authorized person in your company and handed over to the PF office. After submitting them, they will give you an acknowledgment copy which you should keep for further reference. Typically, it should take 60 working days, but it can take longer to credit the PF amount to the employee.
Regarding your next point of leave encashment, it basically depends on your company's policy on how you are encashing the leaves. Most companies encash the leaves based on the basic salary. (Basic salary/30 days * leaves to be encashed) Please check your company policy on leaves and then proceed.
All the best.
Regards,
Sushma
From India, Hyderabad
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Dear Madam,
I have gone through your message and attachment. Thank you for guiding me.
I would like to add one more query that along with form 19, we used to attach form 5, which was not shown in your message. Please provide the same. Thanking you again.
Regards,
Kishore Rathod
From India, Pune
Acknowledge(0)Amend(0)
I have gone through your message and attachment. Thank you for guiding me.
I would like to add one more query that along with form 19, we used to attach form 5, which was not shown in your message. Please provide the same. Thanking you again.
Regards,
Kishore Rathod
From India, Pune
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Full n final settlement.doc