Full & Final Settlement - Query - CiteHR
V. Balaji
Ir & Hr
+4 Others

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Dear All
If worker completed his 6 year and resign,then his full and final settlement is ...
1. Gratuity on basic salary
2. Notice Salary.
4.Unpaid Salary
5.Balance Leave
6. Can we pay retrenchment compensation Also ?
Kindly let me know if any payment skip by me.
Raju Shriname

If gartuity is being paid as per Gratuity Act, it shall be paid on basic + DA. Since it is case of resignation, the payment of retrenchment compensation does not arise.Please check if any claims for reimbursement for travel or any incentives are due to be settled also.
HR & Labour law Advisor

What is criteria of the retrenchment payment ? can it applicable to single worker if we cant give him any work due to any reason ? from Raju Shriname
where is the question of retrenchment here? You have clearly said that "If employee resigns". This means, the cessation of employment is voluntary and company has not thrown him out. therefore prima facie you dont even think of "retrenchment compensation"
You have mentioned "Notice Pay". The way you included in your settlement, looks like you are contemplating to pay notice period also. Then you have asked him to go, right? In that case, it is forceful resignation and not voluntary, right?. If this is the case, then you need to pay retrenchment compensation.
Otherwise if you had intended recovery of Noticer period (employee has to serve), then there is no "payment" we need to assume, but it is "recovery", let's understand.
So be clear about the complete background of exit of this / or any other employee for that matter, so that there would not be any ambiguity in dealing with such settlement.
V. Balaji

I also totally agree with Mr. BalaJI.In case of resignation by the employee question of paying Notice pay / Retrenchment benefit does not arise. Aroop
Dear All
Thanks for your valuable suggestion
Thant means retreanchment give only when we terminate worker,reason whatever
but how to calcualte this amount on basic or on gross,as we calculate gratuity on basic.
Raju Shriname

Dear Sir, This are all the basic thing which known by the HR executive but you asking question regarding this is very bad????? Please let me know you belong to which company.. Regards, Ojos
Dear Friend I am taking admission from distance education for diploma in labour law, whenever i got any question or problem or confusion i take suggestion from you. sorry If you heart.
ojos, not to angry .., these are fershers , ... we are for here to support them , so pls dont heart to them........ Deven
Hello Raju shriname
Retrenchment means termination for any reason like surplus of staff exceept for the following reasons
1) termination by way of punishment like dismissal or
2) termination by way of retirement/resignation/VRS
3) termination by way of continued ill health
4) termination on the expiry of the period of contract in case where a workman has been appointed for a fixed tenure.
Retrenchment compensatio is calcualted on basic+DA + other allowancees but not on bonus.Gratuity shall also not tobe considered since it is anot a wage..
HR & LabourLaw Advisor

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