Is It Fair to Deny My LTA for Not Completing a Year? Seeking Advice on Final Settlement Issues

Hi,

I have joined a Pvt. Ltd. company on 14th September 2015, and my last working day in the company is 20th August 2016. The company has deducted LTA of Rs. 2500 per month from my salary. Now, at the time of the Final settlement, they said that I have not completed one year; hence, I am not eligible for LTA.

Please suggest if this is right.

Thanks and Regards, Mukesh

Dear Mukesh,

If the deducted amount is mentioned in CTC as agreed upon in the appointment advice/letter/agreement, it will be payable with your full and final payout. If the amount is not paid with this F&F, accept the final amount provided and send a legal notice for the recovery of the deducted/unpaid amount. Consider filing a civil suit if you are mentally prepared to do so.

Hi, Mr. Mukesh,

If you have the appointment order or written proof that the company provided you during your joining period, review that document and then inquire why they are deducting the LTA from your salary. If they do not provide a satisfactory explanation, consider taking legal action such as filing an FIR.

Understanding LTA Deductions and Eligibility

First, the company did not deduct ₹2500 from your salary. ₹2500 was included in your CTC as the LTA amount. More accurately, ₹30,000 was considered as part of your annual CTC. CTC is the cost to the company and not the amount you receive. Since you didn't meet the eligibility criteria, you don't receive the amount. If you were under the impression that you were going to get it, then obviously HR/Recruiter took advantage of your misunderstanding. You are not eligible for that money, and you can't get it. So forget it, move on, and next time remember to make decisions based on in-hand salary and not CTC. Consider all perks only to the extent that they make an actual difference to you. Make your job change decisions keeping in mind the eligibility cut-off.

Regards