Maternity Leave Exceeds Limit: How Do You Determine the Last Working Day for F&F Settlement?

When an existing employee takes a long leave (e.g., maternity leave) and exceeds the maternity leave duration limit, the question arises: which date should be considered the last working day for the Full and Final (F&F) settlement in the case of maternity leave.

Please mention whether the extension of maternity leave was for any illness or otherwise. Thank you for your message. I will need clarification on whether the extension of maternity leave was due to an illness or for another reason. Kindly provide additional details so I can assist you accordingly.

I don't understand your question. F&F is generally done when someone is leaving the organization. Somebody going on a long maternity leave is not going to get it. So what exactly is the situation you are considering?

When an existing employee takes a long leave, for example, an employee may go on maternity leave and could exceed the maternity leave limit for any reason, attendance will show LOP for 1 to 3 months. After that, she may resign from the job, or she may not return.

Final Settlement for Maternity Leave Cases

In these cases, which date should be considered the last working day in the final settlement for a maternity case? Is there any act that governs this situation? If yes, please share.

Considerations for Termination During Maternity Leave

Saswata asked the right questions. Before considering any knee-jerk reaction to the absence of your employee, please research the repercussions. Termination during maternity leave can be challenged unless there are strong legal reasons supporting it.

Thank you.

If she resigns voluntarily after her Maternity Leave and has not extended her Maternity Leave due to illness, you can use the last date of her Maternity Leave for your Full and Final (F&F) Calculation.

After maternity leave, she may apply all her privileged leave. After completing her privileged leave, she may require some more days/leave for any reason, and attendance will show Leave Without Pay (LOP). After that, she may resign or abscond. In this situation, which date needs to be considered for the last working day in the Full and Final (F&F) settlement?

If she does not return to her duty after taking the said leave, nor inform the company for many days, what is the next step?

You may take the date until which she was paid salary as the last working day. For example, if she was given maternity pay for 84 days and then she remained on privileged leave for another 30 or 36 days, depending on the availability of PL to her credit, and since then she is absconding or writes expressing her decision to resign. In such a scenario, take the date on which her PL expires as the date of exit for all purposes, including issuing a service certificate. Naturally, for F&F, only gratuity (if applicable) will be available to her, and that can be calculated based on her salary as of the above-mentioned date.

Regards,
Madhu.T.K

Dear Madhu,

Thank you very much for your valuable reply. Let me know if there is any act or written communication for considering this (the date on which her PL expires as the date of exit for all purposes, including issuing a service certificate). If yes, please share the same.

Regards

Dear Madhu,

Thank you very much for your valuable reply. Please let me know if there is any official written communication regarding considering the date on which her PL expires as the date of exit for all purposes, including issuing the service certificate. If such documentation exists, kindly share it with me.

Thank you.