Umakanthan53
Labour Law & Hr Consultant
+1 Other

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Anonymous
Hi, I have query regarding the full and final settlement. I was working in a company after completion of 5 months I gave resign there with proper handover. I submitted my resignation on Saturday.and in that week I attend duty 5 days.am I eligible to take weekly off with pay or not?And am I eligible to take earn leave encashment while I was on probation period.
From India, Faridabad
Resignation normally becomes effective only from the actual date of formal relief after its acceptance by the employer.
Thus from that particular date of formal relief from the organization, the contract of employment ceases to exist. Therefore, an ex-employee cannot claim any weekly off falling after the date of his formal relief from the employment.
Though there is no mention in the post about the type of the establishment, normally the accrual of E.L becomes effective only after the completion of one year or 240 days of continuous service in the establishment. Since the poster seems to have completed only 5 months of service prior to his resignation, he is not eligible to claim surrender value of his EL.

From India, Salem
Resignation becomes effective from the last working date and its being acceptance by the employer.
Thus after the last working date of formal relief from the organization, the contract of employment ceases. Therefore, an ex-employee cannot claim any weekly off falling after the last working date of his formal relief from the employment.

From India, Bengaluru
R/sir
Establishment deals in manufacturing of led tv packing thermocol.
240 days is the entitlement of E.l . If an employee joins in the month of july then how he can complete his 240 days in that year and E.L is the earning of a employee on 20 working days.in full and final settlementthe encashment of earn leave should be on pro rata base.

From India, Faridabad
Dear Dinesh,
The reason for insisting on the questioner to furnish all particulars relevant to any query in a single go is this only.
Anyway, I would request you to check with section 79(2) of the Factories Act,1948 and arrive at the answer on your own.

From India, Salem
R/Sir
Thanks for your valuable inputs.
I have one more query regarding the payments of bonus. Employees drawing wages upto 21,000 per month or less is eligible for bonus. the amount of 21,000 is the gross salary or basic + D. A ?
with Regards
Dinesh

From India, Faridabad
Dear Dinesh,
In my opinion the gross salary is to be taken for the purpose of an employee's eligibility to claim any monetary employment benefit prescribed under any law applicable to the establishment where he is employed.
Some others may hold a contrary view sticking to the definition of the term "salary or wages" so defined in the particular enactment conferring such benefit.
The logical reasoning that I can give in support of my view is this:
The term "wage" or "salary" would indicate the overall compensation paid by the employer at the end of a wage period in consideration of the services rendered by the employee. Therefore, it has to be taken as a single package only as there is no uniformity in the definitions of the term under various enactments. The definition part of any Law would begin with a general phrase " - In this Act, unless the context otherwise requires - ".It implies that the definitions have to be read with the purpose of the particular legislation only. When it is a monetary legislation like the Payment of Bonus Act, the purpose of the Act is to grant bonus to employees with reference to the performance of the establishment in an accounting year based on the wages earned by them. Hence the definition of "wages" has to be adopted and applied for the purpose of calculation of bonus only and not for determining the applicability of the Act.

From India, Salem
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