Debit towards LTA paid during full and final settlement

silami
Hi,
I worked for XYZ co on Contractual payroll. My contract was terminated and my last working day was 7th April 2018. I availed LTA (called LFC in my company) in the month of February 2018. From my full and final settlement an amount equivalent to 268 days LTA payment (from 8.4.2018 to 31.12.2018) has been debited.
What I wanted know that whether this is legal under currently prevailing labour laws of India.
Regards,
Srinath Sai Ram
Dear Anamika, you have stated that your Employer has deducted excess of LTA Amount (on Prorata basis) for the period from 8.4.2018 to 31.12.2018.Please note that you have to analyse the same on the basis of Annual Payment, which is paid proportionately.Further you have confirmed that your Service has been Terminated a sper Appointment Letter.The Employer is right in deducting LTA Amount towards shortfall in service
KK!HR
The company may have a set policy in this regard. Perhaps you may have agreed to be bound by the Rules and Regulations of the company by accepting the offer of appointment or during the joining formalities. Pl ascertain whether there are any rules providing for such deduction. In case it is so, then probably there is no case otherwise there cannot be a post event (after your discharge) rationalisation for the deduction made.
silami
Dear KKHR,
I did not find anything of that sort in the appointment offer, and also in the LFC policy, which clearly states about such pro-rata debit in the event of separation before serving complete year in which the LFC was availed. I will re-check every line again and get back to you.
Thanks.
baboo
a colleague of mine after service with a limited (deemed) company worked for 18 years (regd office in New Delhi). He was posted in their mysore headoffice. He was retained after post superannuation of
58 years, as Retainer. He has not been given letter of Retainership/contract entered. He has been asked
to follow attendance of 21 days (including cl and pl) of Karnataka Shop and Establishment. He has been
paid his remuneration after TDS from Kolkatta. His Registered office follows 5 days working regime and Mysore office follows 6 days. Please do let us know following points.
1. Format of Retainership/Contract with attendance facilities
2. Format of Conveyance expenses claim (he has to attend to matters prevailing in govt department)
3. Roles and Responsibilities
4. Should he work for 5 days or 6 days (since salary comes from Delhi and he works in Mysore)
5. What other privileges he has can eligible for reimbursement
6. Upto what period of age he can be retained in the service of the company
hoskote
srinathbaboly
KK!HR
Your queries are answered at seriatim below:
1. Format of Retainership/Contract with attendance facilities : There is no prescribed format for the purpose. The text of Retainership agreement depends on the post, duies & responsibilities, other service conditions etc
2. Format of Conveyance expenses claim (he has to attend to matters prevailing in govt department) : You can follow the format being used for regular employees
3. Roles and Responsibilities : This depends on what you are envisaging and more particulars are needed.
4. Should he work for 5 days or 6 days (since salary comes from Delhi and he works in Mysore) : Pl clarify whether he draws salary from Calcutta as stated in the description or from Delhi as is stated now. At any rate he has to follow the norm of Mysore where he is working.
5. What other privileges he has can eligible for reimbursement : Depends on what you want to give him. Retainers are normally paid lesser emoluments than regular employees, you can fix any amount not lesser than the notified minimum wages.
6. Upto what period of age he can be retained in the service of the company: There is no prescribed age limit, mostly retainership is for two years (i.e., 62 years) and max. is upto the age of 65 years.
You need to develop a proper policy defining the parameters so that uniformity is maintained.
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