Can We Write These Things In Company Policy

Dear Concerned,
Our company comes under delhi shops & establishment act.
Please guide if we can mention these points in company HR policy & publish among employees.
1) All balance leaves of employees will be frozen and he/she can not avail any leave during the notice period. (El will be encashed at the time of full & final)
2) The full and final settlement shall take place within 30 days of last working day of an employee. It includes Relieving letter cum Experience letter and full and final settlement cheque.
3) The company has the right to withhold the salary, gratuity, ex-gratia/ bonus and leave encashment (if applicable) in case the employee does not submit the No dues/ Handover form.
Your inputs & guidance are highly appreciated.
Thanks
Deepti

Yes..All points are genuine and valid .So dont hasitate and proceed.

Dear Friend,

1) During the notice period the employee is not entitled for any kind of leave. However, on exceptional cases like death of kin the period of leave will be allowed provided the organisation have the right to extend the period of notice period equal to the leave availed.

2) All financial settlements will be finalised/settled within the 30 days from the date of relief from service. The financial settlement will be done by cheque payment no cash payment will be made.

3) Salary, gratuity, leave encashment will be with held by the company for last clearance from the concern department, if found embezzlement or financial loss of any kind the same will be deducted from the source of payments. The employee should get clearance/no due form from the department of all concerned and hand over the same for processing last financial benefits to the employee. This is the responsibility of the employee.

As regard, the salary certificate, service certificate may be issued to the employee on completion of the notice period as the same is important for the progress/future of the employee. We should not put any kind of hurdles on these issues.

Dear Drishti/Deepti,
First of all, please clarify, whether your name is Drishti, as per your profile or Deepti, as noted below your query?
Secondly, what is the status of your company, i.e. a proprietory firm, partnership firm, Private Ltd company or a Public Litited company?
Thirdly, are you really a qualified HR personnel?
Fourthly, at what stage of service of an employee you propose to freeze the leave?
Fifthly, leave aside other employees, if you or any of your loved family member falls ill, would you willingly come to the office for doing company's job?
Sixthly, Do you believe that employees of your companies be treated as slaves (bandhua mazdoors) of your company?
Seventhly, are you sure that your company can be able to recruit or then retain the employees with such type of arbitrary conditions? And
Lastly, can you guarantee that your company would not disappear one day with all the leave dues and held up salary dues of the employees?

Ms Lavika,
Would you please like to clarify, on what points of merit the proposals of Ms. Drishti/Deepti has been considered as genuine and valid?

Dear Dipti,
I have different opinion against first point.
1) All balance leaves of employees will be frozen and he/she can not avail any leave during the notice period. (El will be encashed at the time of full & final)
Comments : - just because someone is on notice period cannot become ground to deny leave. Whether to approve leave or not is the discretion of HOD. Let him/her exercise this discretion.
Thanks,
Dinesh Divekar

With regards to your thread please refer the view in Bold Capital
1) All balance leaves of employees will be frozen and he/she can not avail any leave during the notice period. (El will be encashed at the time of full & final)CL/SL CANNOT BE DENIED
2) The full and final settlement shall take place within 30 days of last working day of an employee. It includes Relieving letter cum Experience letter and full and final settlement cheque. THE SALARY HAS TO BE RELEASED WITHIN 7 DAYS FROM THE LAST WORKING DATE, WITH REGARDS TO EXPERIENCE/RELIEVING LETTER HAS TO BE HANDED OVER WITHIN 3 WORKING DAYS AS IT IS MANDATE TO THE FUTURE EMPLOYER
3) The company has the right to withhold the salary, gratuity, ex-gratia/ bonus and leave encashment (if applicable) in case the employee does not submit the No dues/ Handover form.GRATUITY CANNOT BE WITHHELD

Dear All,
First of all my name is Deepti, I have 4 years of experience in HR (mainly recruitment)
& thank you for your inputs.
These points are mentioned in our separation policy & One of the newly appointed legal person in our organization has raised this question that such things you cannot mention in company policy as per legal aspects.
I just wanted to know if he is right, we should think about changing this or only the language should be changed.
& the organization is pvt ltd.
Regards
Deepti

Deepti,

There is nothing wrong in mentioning these things in your policy, or putting it in your standing orders.

All companies have this no leave during notice period rule. It is definitely valid. The company can always use its discretionary powers to give leave even when it is genuinely required. The policy as such, is right and good.

30 days time for full and final settlement is ok, except that salary for days worked need to be given within 2 days of the last working day. (Check Delhi shop act and rules, they may have a longer period - 7 days perhaps). Rest of the money you can give in 30 days. You can withhold if the person does not complete exit formalities including clearing of dues.

However, as Saji says, withholding gratuity may not be an option, as there are specific rules about its payment.

Remember, though, if you do not pay these dues for any reason, you are required to put it (net of any dues to your company) in unpaid wages register and hand the money over to labour welfare fund at the end of 3 years.