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Hai,

As you have employees of only two in number, do not worry or panic about the applicability of labour laws. The Conciliation officer have told you to pay the amount (based on Gratuity payment formula). But PF/ESI/Gratuity /Bonus etc's applicability to your Shop is Nil.

The person who has sought separation from your shop is not entitled to get any of the terminal benefits under the above Acts except PL leave encashment.

Over and above, considering the services rendered by him, you may consider giving some "ex-gratia" payment to him - this is not mandatory under the labour statutes, but purely of

obligatory in nature. Though not required under the relevant provisions of PF/ESI Acts, your shop covered under these Acts. You can, therefore, help him to getting his PF dues or arrange to transfer his PF dues, if he takes employment elsewhere.

From India, Aizawl
Going through the content, a simple question hit, if the shop or establishment in past never reached 10 or more employees then why EL even was paid in past?
mere present status is mentioned in the post, not the entire history of the establishment,


Firm came to a settlement in the meeting and agreed to pay the asked amount of 49500 (service compensation) - 9500 (advance) = 40000 and thus gave a cheque to the employee in front of the ACL. The employee just gave a receipt of full and final settlement stating I have recived 40000 cheque from firm as my FnF settlement and I have no further monetary claims. Thats all. This copy was signed by the ACL and given to the firm owner. In his note sheet, ACL mentioned case closed. There was no mention of any laws or sections or how the amount of 49500 was reached in the receipt or in ACL notesheet.
Is the owner and her firm safe from any further allegations. Will employee again create problems? Owner says she just wants peace from all this and does not want this to go further. She told was she was put on spot as ACL was saying if you pay now it will settle or else employee is ready to go to the court and she did not want any further expenses regarding it. She also agreed since i informed her that since esi is applicable on her she has to pay gratuity which amounts to a higher value than what is asked for right now.
I am just worried that no document from the dept. was given to her and the receipt given by the employee is very vague.
Any other paperwork required since employee did not give anything else. IF required, she will try to connect with the employee and get those papers since it will take a day for cheque clearance.

From India, Bengaluru
The saying, All is well that ends well, is actualising, is all you can hope for. As explained by all learned members, you are not covered under the labour legislations, so the employee has no legal rights which he can agitate against you in any judicial forum. You have already given a lumpsum compensation of Rs. 49,500 against a salary of Rs 11000/- which appears reasonable and equitable. Even if the employee ventures into any unwanted litigation you have enough matter to defend. You can apply to the Office of ACL and get certified copy of all the orders made in the matter.
From India, Mumbai
Dear colleague,
With the settlement arrived before ACL, put all your worries behind.
Since he has earlier given resignation letter and now F&N receipt with no monetary claim in front of ACL who has also signed as a party, I don't believe the employee has valid reason to agitate. Keep the documents safely for any reference in future.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant

From India, Mumbai

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