Anonymous
In case of adjusting Earned leaves against Notice Period.. what will be relieving date in the record?
Scenario: Date of Resignation: 12/02/21.. Notice Period: 45 Days.. Last working date: 29/03/21.. EL in hand: 25 days.
So if we adjust his EL with notice period and his last date will be 04/03/21... but we paid till 29/03/21.. then for pf/gratuity record what will be exit date 04/03 or 29/03 ???
Please guide

From India, Pune
Dear friend,
Sorry, I am at a loss to understand your narrative. Both the last working days you mentioned are only in the future. As such you are going to pay the individual only up to the earliest probable date of separation i.e., 04-03-2021. For monetary calculation pertaining to any aspect of employment such as salary, contributions to EPF and ESI, gratuity, only the actual date of termination should be taken into account which in the case on hand would be 04-03-2021 after adjusting the 25 days of EL against the short fall in the notice period.

From India, Salem
@umakanthan53
Let me correct myself..
Right,as you mentioned all dates are in future.. so i am asking this query.
MY Query is :- IF i consider his EL (25days)then actual his last working date in office will be 04/03.. but we will pay him salary till date of 29/03.. so my first question Can we do that way? and second question what will be exit date for PF,grauity, relieving letter etc ?

From India, Pune
rkn61
464

When the concerned employee shall be working upto 4/3 (presumably he shall be relieved from his duties and responsibilities on 4/3, during closing hours), why do you want to pay him upto 29/3 ? What is the logic behind this?
As regards PF, ESI, next date to his date of relieving shall be the date of exit from employment.

From India, Aizawl
@rkn61 why do you want to pay him upto 29/3 ? What is the logic behind this? — we like to adjust his EL with Notice period. so from 04/03 to 29/03 can we mark him on paid leave to adjust same
From India, Pune
rkn61
464

@Jareena, in that case the employee shall be on the pay roll of your company upto 29/3 and you may mark date of exit in PF/E|S|I| records accordingly.
From India, Aizawl
Glidor
617

@
adjustment of Leaves from notice period buyout, is the management discretion, they may allow or may decline to adjust,
However in case of adjustment, such leaves are paid leave, and after adjustment of leaves the leaving date will appear,
another factor, that all statuary contributions would be deducted and paid on such adjustments, as it is not "encashment of leave" but adjusted for notice working days


Dear Jareena,
I think that you have to distinguish between permitting adjustment of EL at credit against unserved notice period and permitting the exiting employee to avail the entire EL at credit during notice period. In the former he is not required to be present for work nor you are going to allow him encashment on termination that would be an earlier date subsuming the no of days of EL into the notice period fixed. Only in the latter case you are going to pay him leave salary and relieve him on the agreed date as per the notice clause mentioned in the contract of employment..

From India, Salem
This is very much common to many organizations. In this case the employee will work till 04/03.2021 and rest of the notice period will be adjusted against his accumulated earned leave. The employee may be released with effect from 04.03.2021 after closing of business stating in the release letter - you are here by released from the services of the Company with effect from 04.03.2021 after closing of business and after adjusting your short fall notice period from your accumulation earned leave.
Automatically the employee will be shown out from the PF, ESIC etc.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions


From India, New Delhi
It is prerogative of the management how they like to consider. Mostly company prefer/consider for serving of entire period of notice 30 or 6o days as the case may be. The EL to be settled with the payment of F&F.
If the management consider EL adjustment in notice period then(Notice Period-EL) employee has to work for balance period.

From India, Mumbai

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