Medical Reimbursement Of Resigning Employee - CiteHR
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Dear all,

I am facing a strange situation and urgently need your suggestion in this regard. In our company we provide medical reimbursement quarterly on submitting bills. One of our employee has resigned on 3rd of August 2007 and his last working day with our company will be 30th August 2007. She has got the medical reimbursement for the first quarter on submitting bills. She is asking for the medical reimbursement for the month of July which is the first month of the next quarter. In previous occassions we have paid this as medical allowance with tax deductions during full and final settlement and did not give it as reimbursement for a single month of any quarter. But this policy was written any where but it was the standard practice.

Few days back that particular employee came to us and asked for the reimbursement and when we specified that she will get it as allowance (after tax deductions) and not reimbursement she behaved very rudely with me and the accounts executive.

Our CEO is very employee friendly and he sadi if she is asking we can give it as reimbursemnt for the month of July only as she was an employee at that time.

Please let me know what should be done ideally in this situation and what do other companies practice.

Waiting for your early response.

Thanks in advance


sunetra, i share your ceo’s perspective: policies are meant for customer n employee satsifaction, if they become hindrances, modify them and the company never ends up as a loser.. surya
As a fair HR practice, you should reimburse her the medical expenses for July, and also for August, if any. Medical reimbursement is done in most of the progressive companies either monthly or quarterly, only for the sake of convenience. The entitlement is normally decided as an annual amount (the limit being the maximum permissible under Income Tax rules), and the decision to pay it monthly or annually is purely an internal arrangement within the company. Technically there is nothing stopping the company from paying the amount in one go, in the first month of the Financial Year itself.
It would pay you in the long run to treat every departing employee with respect and dignity, so that he or she remains a goodwill ambassador of your company even after separation. However, sadly not many HR professionals practise this!

Hi Raj & Surya,
Thanks for your valuable suggestions. Actually we are never afraid of giving employee benefits and always open for suggestions and discussions. The matter that hurts most is the behaviour of few employees with the HR Department. They think that HR sits in the company for nothing and getting the salary just like it. Infact it is after I joined in this company most of the employee benefit policies have been introduced. But this misbehaviouir always leaves a bad taste and it hurts badly.
Thanks once again

One of the points brought out by Sunetra is valid and relevant, being prevalent in many organizations today. HR is still considered a back office function by many, including the top management of some of the companies. What is even more perturbing is that HR is often treated as the watchdog and mouthpiece of the top management by both the employees and the top management themselves. How many companies really treat HR as strategic partners in policy making and implementation today? And I am not referring to employment policies alone.
Who is to blame for this state of affairs? Are we ourselves not to blame for this to a great extent? And if yes, what are the reasons?
Any thoughts on this, members?

BOSS is always right ,,,
Do what your CEO says, better put up a note in this regard if it differs from statutory rules, and get it signed by your CEO, so tomorrow you are not accused of wrongly allocating the medical to employee.

When the employee is asking for the peirod , when she was actually the employee, she is eligible for any kind of benefit / financial aid
If it is paid on a later date, it is not the employee mistake
In this case your CEO prospective is clear and to be adopted
Regards : R sudhakar

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