Full & Final Settlement - Leave Encashment

all members
need your help
A person designation Dy. Manager Joined in jan 07 on Probation completed his 6 months probation and had been issued a confirmation letter. He has resigned his services from 06th Oct. 2007.
now i have some questions e.g.
1) Whether he should be entitled for leave encashment in Full & final account e.g. CL/SL ?
2) Whether he should be entitled for Bonus ?
3) if yes then how much i mean 8.33% or the declared one ?
4) he has not served notice period, am i have right to deduct the 1 month salary from leave or bonus payment.
i need to prepare his full & final settlement please guide me.
thank you,
Prashant More
DuFlon Polymers Pvt. Ltd

Dear Prashant,
1. Since he has been confirmed i think Leave encashment must be given.
2. As he has completed more than 30 days in the co. he will be eligible for Bonus.
3. Not sure about the 3rd question. Sorry for that.
4. As he has been confirmed, you can deduct notice period from his final settlement, as per the terms of his appointment / confirmation.
Regards,
Sunil

Hi Prashant
If you have issued confirmation letter to any employee automatically he will be entitled for CL/SL and EL also.
If any employees who is confirmed work for more than 30 days he is entitled from Bonus whether 8.33 or 20% or whatever is your declared limit it depends upon the policy of your company
If you have mentioned this thing I mean completion of notice period otherwise company will deduct one month salary then you have a right to deduct his salary from his full and final account if he has not served his notice period.
If you need anything else do tell me.
Thanx
Sushma

Hi Prashanth,
Answer for 3rd Q? You have to give him the declared one as he has got the confirmation letter.
Regards
Pandian

Hi Sushma
thanks for reply
regards my 3rd question, at time of his appointemnt we have given him the total pacakage inclusive of 20% bonus for the period of 2006-07. now for the yr. of 2007-08 do i have to give 20% or i can give as per the standing 8.33%.
which is applicable for him
thanx
Prashant

Response to your queries:
1) Whether he should be entitled for leave encashment in Full & final account e.g. CL/SL ?
Ans: CL or SL is not supposed to be encashed. It is only earned leave which is to be encashed. If he has anything it has to be encashed.
2) Whether he should be entitled for Bonus ?
Ans: It depends upon his Salary. If his Basic & DA salary is less than 3500 he will be paid the same, if not he is not eligible for Bonus.
3) if yes then how much i mean 8.33% or the declared one ?
Ans: NA
4) he has not served notice period, am i have right to deduct the 1 month salary from leave or bonus payment.
Ans: Since his job is not confirmed, he can leave job with a days notice. No deduction is to be made. Check his Appointment Letter for this clause.
Bibek Banerjee

HI Prashant
Good morning
If u have mentioned his ctc including 20% or u have mentioned his 20% bonus in appointment letter.
Then u'll have to give him 20%.
Here I want to tell u something about the policy of my company. We give 20% bonus to all of our employees at the time of Diwali. But if any employee leaves the company we only give him/her 8.33% in his full and final AS PER THE INSTRUCTION OF MD.
This is the instruction of MD so we have to obey it.
Thanks
Sushma

Dear All,
How a employee will be eligible for EL with out completion of 1 years of service in a company.
Then as he was a confirmed employee, we ask him to serve 1 month notice period or we have to deduct 1 month notice period amount from his final settlement.
Regards,
V.Arunkumar.

Hi Arun
U r right if an employees does not serve the organisation for 240 days he will not be eligible for EL.
Sushma

Hi,
With respect to your queries:
1)Whether he should be entitled for leave encashment in Full & final account e.g. CL/SL ?
Since he is confirmed he is entitled for the same.
2) Whether he should be entitled for Bonus ?
He is entitled for the bonus mentioned in the appointment letter
3) if yes then how much i mean 8.33% or the declared one ?
Declared one
4) he has not served notice period, am i have right to deduct the 1
month salary from leave or bonus payment.
Yes you should deduct the notice period amount
Hope this helps you.
Regards
Karuuna
9833471989