QUERIES
In our organization we are going to Settle the Suspended employees. He was suspended in 2010 and In 2013 we are going to settle the account so have we pay him gratuity till 2010 or 2013. and we have to give him bonus for suspended period or not ???
Pls guide me asap/
Thanks.

28th December 2013 From India, Ahmedabad

PARTICIPATING IN DISCUSSION:
Umakanthan53
Labour Law & Hr Consultant
517246471
Manager
+7 Others

The information given by you is not sufficient because you have mentioned that an employee was suspended in 2010 & settlement is planned in 2013, you have mentioned any thing about the enquiry / out come of enquiry / action taken / punishment awarded or the employee is under suspension for the entire period. However the Payment of Bonus & Gratuity depends on the process of settlement. As per the information we have we opine that you maybe obtaining resignation letter and relieving then they may ask you to consider the Gratuity till the date in year 2013. The process depends the modality & the agreement between both of you wrt settlement.



As far as Bonus is concerned as per Bombay High Court decision (Motor industries Company Ltd., vs Popat Muralidha Patil), subsistance allowance would not amount to remuneration or wages but Gujarat High court ( project Mgr, ONGC vs Sham kumar Sehgal ) held that a suspended employee will not be disqualified for bonus.

Considering the above details the payment of Bonus & Gratuity depends on the terms and conditions between both of you.

Regards - kamesh
28th December 2013 From India, Hyderabad
How you treat the period of suspension is detrminative of the issue.What is the order that was passed with regard to his suspension? b.saikumar HR & labour Law advisor navi Mumbai
28th December 2013 From India, Mumbai
Hello Dear Member,
Whenever you put forward your discussion, pl provide as much information as you can so that the views can be given accordingly. In your present discussion, it is not clear whether :-
1. The employee concerned is being terminated in 2013 or he has been forced to resign instead of termination. What I presume that the employee was under suspension since 2010 and was finally terminated or separated from services as directed in the order of Disc. Authority in 2013. If so, he is liable to Gratuity upto 2013, provided other conditions as per PG Act are satisfied, because the relationship of employee-employer existed till 2013.
2. As regards payment of Bonus, in my opinion he will not be entitled to any Bonus as it is a part of profit shared between the employees, but since he was under suspension from 2010 to 2013 till termination/separation, his contribution towards the profit making process was NIL, hence not eligible to any Bonus.
AK Jain
30th December 2013 From India, Jabalpur
Dear seniors I would like to know about eligibility of gratuity if some one has worked under subsidy company and now he is under pay roll of parent company.while moving from subsidiary to parent it was the management decision and employer force to resign employee.one term is also mentioned in the offer latter that 'since you move from subsidiary it is deemed to confirmed from the DOJ.was service under subsidiary company period consider for gratuity calculation if yes under which section of PG ACT
30th December 2013 From India, Mumbai
Regarding the query raised by 271085, I think the settlement arrived at is an amicable one. However, the benefits flowing out of the settlement to the erstwhile suspended employee are, as aptly suggested by Saikumar, dependent upon its terms and conditions.If the crucial date of separation mentioned in the settlement is that of the date of suspension, no consequencial benefits for the subsequent period; otherwise he is entitled to gratuity, bonus till the date of settlement for suspension cannot snap the employment bond.

Coming to the question of 517246471, in the eye of Law, both the Holding or Parent Company and the Subsidiary Company are different legal entities. In the absence of any unequivocal agreement regarding the absorption of the services of a particular employee between themselves, the services rendered in the former will be inconquencial in so far as the latter is concerned.Besides, the resignation of the employee, whether forced or voluntary, breaks the continuity of his services irrespective of the confirmation in the latter from day one.If qualified, his claim for gratuity will lie against the Subsidiary Company only I suppose.
2nd January 2014 From India, Salem
once resigned and it is accepted and al the clearance has been made and subsidy paid al your dues, there is no way that you claim for any benefit from your previous date of joining. once resigned , even if you join the same company all the benefits will be calculated and given as per the new date of joining.
3rd January 2014 From Pakistan, Lahore
Hi Seniors,
Please guide me on following case:-
1.Employees has been suspended during the charter of demand for 1.4yrs (March 13 to aug 14)
2.During his suspension period company paid his subsistence (suspension) allowance as per law.
3.Said employee has admitted the leaved charges
4.Management suspended said workmen for two day
5.During said period the said employee has joined union which is the party of wages settlement
6.Management given lump sum amount to all unionized workmen
Qtn:-
1.Has the said workmen have right to get first year amount ??
2.Has the said workmen have right to get lump sum amount similar to other workmen??
3.Has company require to pay arrears amount of first year in with the subsistence(suspension) amount??
Please advice
Regards
Santosh M
9226343108
9th May 2015 From India, Pune
Dear Santosh,
Your point no.4 suggests that the charges levelled against the suspended employee was disposed of by the punishment of suspension for two days. It implies that the remaining period of suspension has to be regularised as duty and as such he is eligible for full salary minus the subsistence allowance already paid. Therefore, as he was the member of the signatory union on the date of signing of the settlement and the charges levelled against him ended up in the punitive suspension of two days
(1) yes
(2) yes
(3) yes
Whatever the arrears of normal wages for the suspension period minus the two days punitive suspension together with arrears of settlement wages w.e.f the date of its operation have to be paid to him deducting the subsistence allowance already paid.
9th May 2015 From India, Salem
[Dear Umakanthan Sir,
Thanks for your advice ..can you able to provide me any case law on same.
Request to please posted on site.
Regards
santosh
QUOTE=umakanthan53;2228706]Dear Santosh,
Your point no.4 suggests that the charges levelled against the suspended employee was disposed of by the punishment of suspension for two days. It implies that the remaining period of suspension has to be regularised as duty and as such he is eligible for full salary minus the subsistence allowance already paid. Therefore, as he was the member of the signatory union on the date of signing of the settlement and the charges levelled against him ended up in the punitive suspension of two days
(1) yes
(2) yes
(3) yes
Whatever the arrears of normal wages for the suspension period minus the two days punitive suspension together with arrears of settlement wages w.e.f the date of its operation have to be paid to him deducting the subsistence allowance already paid.[/QUOTE]
11th May 2015 From India, Pune

Please login to participate in this discussion or start your own. Create Account





About Us - Advertise - Contact Us - RSS   On Google+  
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network

All rights reserved @ 2017 Cite.Community™