Confused About Final Settlement and Benefits After Resignation: Can You Help Clarify?

Full and Final Settlement Calculation Inquiry

I want to know the full and final account calculation and other benefits calculated in case of resignation.

He joined a private limited company on 10th September 2007 and resigned in August 2016, giving one month's notice as per company policy. His last working day with this company was supposed to be 28th September 2016, but he requested to be relieved early, by the 25th of September. He worked until the 24th of September and had 30 days of earned leave and 1 casual leave (CL). For your information, we are entitled to 30 days of earned leave and 12 other types of leave (CL, SL, etc.) per year. His basic salary was Rs.12776. He also had a Leave Travel Allowance (LTA) of Rs.1065 per month and a Mediclaim of Rs.1065 per month. These benefits can be claimed yearly, and he had not claimed them before resigning.

Today, he received his salary slip for September 2016, which shows a basic salary of Rs.7666 paid for 18 days only. He had taken 2 days of leave after giving his one-month notice. I am unsure if this salary calculation is correct since he worked until the 24th of September and had taken 2 days of leave. He left the company early on the 24th of September with the company's approval, even though his original last day was the 28th of September. Please help me understand if this salary calculation is accurate, considering he had 30 days of earned leave and 1 CL pending.

Furthermore, in his full and final settlement, what benefits will he receive? He had not claimed the LTA and Mediclaim, as there was an increment effective from April 2016, which he received in July 2016. In this scenario, what will be the amount he receives in terms of gratuity, LTA, Mediclaim, and earned leave?

Please send me a reply as soon as possible.

Based on the provided information, let's break down the calculation and benefits for the employee's full and final settlement upon resignation:

1. Salary Calculation:
- The employee worked until the 24th of September and had taken 2 days of leave. Therefore, the salary for September should cover 22 working days (24th - 1st - 2 days leave).
- The basic salary for 18 days in September appears incorrect. It should be calculated for 22 days based on the last working day being the 24th.

2. Benefits Calculation:
- Gratuity: Calculate gratuity as per the Payment of Gratuity Act, 1972, which is 15 days of last drawn salary for each completed year of service. The basic salary will be considered for this calculation.
- Leave Encashment: The employee is entitled to encashment for the 30 days of earned leave. Calculate the amount based on the basic salary.
- LTA and Mediclaim: Since the employee had not claimed these benefits, they can be included in the full and final settlement. Calculate the total amount for LTA and Mediclaim for the period they were eligible but had not claimed.

3. Steps for Calculation:
- Calculate gratuity based on the years of service and last drawn basic salary.
- Determine the amount for earned leave encashment using the basic salary.
- Include the LTA and Mediclaim amounts that were pending and eligible for the employee.

4. Final Settlement Amount:
- The final settlement amount will comprise the correct salary for September, gratuity, earned leave encashment, and the pending LTA and Mediclaim amounts.

5. Recommendation:
- Verify the salary calculation for September and ensure it covers the correct number of working days.
- Calculate the gratuity, leave encashment, and pending benefits accurately to provide the employee with a fair and complete full and final settlement.

By following these steps and calculations accurately, you can ensure a transparent and correct full and final settlement for the resigning employee.