Hi Saiprasad
Calculating service weight-age for settlement in the context of employment typically involves assigning a certain value or weight to each year of service to determine the overall compensation for an employee based on their tenure. The idea is to recognize and reward employees for their years of dedicated service to the company.
Here is a simplified example of how you might calculate service weight-age:
Determine the Weight-age Scale:
Define a scale that assigns a weight to each year of service. This could be a linear scale where each year is assigned a fixed weight, or you may choose to give higher weights for later years to emphasize long-term service.
Assign Weights to Each Year:
For example, you might decide on a linear scale where each year contributes a certain amount to the service weight-age. Let's say you decide on a scale where the first year contributes 1 point, the second year contributes 2 points, and so on.
Calculate Total Service Weight-age:
For each employee, calculate the total service weight-age based on their years of experience. Add up the points or weights for each year of service.
Example:
An employee with 5 years of experience would have a total service weight age of 1 + 2 + 3 + 4 + 5 = 15 points.
Incorporate into Compensation:
Once you have the total service weight-age for each employee, incorporate it into the settlement calculation. This might involve multiplying the total service weight age by a certain factor to determine the additional compensation for the employee.
Discuss and Negotiate:
Before finalizing the settlement, it's important to discuss and negotiate the service weight-age with the union representatives and employees. Transparency and clear communication are key to ensuring that the process is fair and understood by all parties.
Hence, the exact calculation method and the scale of service weight-age can vary based on the agreement between the company and the union. It's crucial to involve relevant stakeholders, such as HR professionals and union representatives, in the decision-making process and to adhere to any legal or contractual requirements in your jurisdiction.
Thanks