Labour Law & Hr Consultant
Industrial Relations And Labour Laws
Sr.executive (per & Adm)
17th July 2014 From India, Kannur
17th July 2014 From India, Salem
If we analyse the purpose for which each component of salary is paid, we will find that each is related to employment. For example, if conveyance allowance which is an allowance forming part of salary, is paid to the employee to meet his travelling expenses from his residence to office and back, should we pay it if he has not come to office? If telephone allowance is paid to recoup the expenses he incurs by making official calls from his personal telephone should it be paid he has not made any official calls during a month or part of the month? If medical allowance is paid as part of salary it is paid to care of himself being employed and will it be paid when he has not worked? We will not pay it because these are allowances forming part of salary. But when it comes to reimbursements, it is not actually limited to travel to office or making official calls but you are getting it for your personal travel (fuel reimbursement) , personal calls or medical care of family and all these are available so long as the employee- employer relationship exists.
But the main problem comes when the employee is absent or on leave without pay for the entire or substantial period of the month. In such a scenario, claiming the reimbursement alone will not hold good just like claiming salary for the off days and holidays intervening a whole range of leave without pay. If we view in that direction, why canít we say that reimbursements should also be paid prorate if there is no pay days? This is an outcome of the thought that on days without pay there exists no employee employer relationship!! It is just a thought, please share your views.
18th July 2014 From India, Kannur
18th July 2014 From India, Salem
If on a day of such a leave the employee manhandle a superior officer outside the premises of the establishment on an issue happened earlier at workplace involving both,can he escape disciplinary action on the plea that there was no master and servant relationship on that day and employer cannot take action,though the standing orders covers such misconducts.?
19th July 2014 From India, Thiruvananthapuram
The argument is all about whether the reimbursement is part of salary or benefits. I still doubt, in the present scenario, these reimbursements are part of salary only and are taken as reimbursements for tax benefits because now a days the total CTC is the amount offered to an employee in return for the work extracted from him and while designing the said remuneration we will take a part of it as salary and a part as reimbursements which will not attract tax. If so, why don't we deduct the claim prorate if the employee has not worked for the entire days in the month just like his salary is reduced proportionately to the days worked?
19th July 2014 From India, Kannur
26th November 2015