Retirement Benefits and Salary Breakdown
A peon worked in a company for 40 years. His basic salary increased yearly, and at the time of retirement, the basic salary was 6810.00. He was not given D.A. for the past 20 years. His retirement benefits included leave salary, PF, and gratuity. He received only 3 lakh rupees as retirement benefits. He wants to know if he is eligible for any other retirement allowance. He was paid HRA Rs. 4090/- as per his last payslip (March 2015).
However, he owned a house and did not claim rent, but the company still paid him HRA. He is unable to understand the divisions and different heads in his payslip to split his salary. For gratuity and leave benefits, only his basic salary was considered. Does he have the right to claim more benefits? He was unaware of the pension rules of his company, and since his last grade, he was isolated. Is there any remedy available to him?
Thank you very much.
From India, Chennai
Acknowledge(0)
Amend(0)
A peon worked in a company for 40 years. His basic salary increased yearly, and at the time of retirement, the basic salary was 6810.00. He was not given D.A. for the past 20 years. His retirement benefits included leave salary, PF, and gratuity. He received only 3 lakh rupees as retirement benefits. He wants to know if he is eligible for any other retirement allowance. He was paid HRA Rs. 4090/- as per his last payslip (March 2015).
However, he owned a house and did not claim rent, but the company still paid him HRA. He is unable to understand the divisions and different heads in his payslip to split his salary. For gratuity and leave benefits, only his basic salary was considered. Does he have the right to claim more benefits? He was unaware of the pension rules of his company, and since his last grade, he was isolated. Is there any remedy available to him?
Thank you very much.
From India, Chennai
Acknowledge(0)Amend(0)
Dear Sriramajeyam, since there is no component of D.A. in the salary structure, your calculation of gratuity based on the lone component of basic salary is legally correct. However, your calculation of leave benefits can be disputed. If I am correct, the leave benefit you are referring to is the surrender value of the EL/PL at his credit on the date of his termination by retirement. Such leave, if availed of by the employee, would be treated as duty, and he would be entitled to the basic salary plus all allowances except those pertaining to actual attendance. Therefore, you should have calculated the leave benefit by including the basic salary and the HRA as well.
From India, Salem
Acknowledge(1)Amend(0)
6108From India, Salem
Acknowledge(1)Amend(0)
Sir,
Please clarify the following:
1. Can he ask for any benefits for his 41 years of service as a peon?
2. He has not been promoted or had a grade change in his 41 years of service. Is he eligible for a stagnation allowance?
3. During his retirement, he was instructed to provide F&F settlement. However, he has not received anything except PF, Gratuity, and leave benefits. What does F&F stand for? Can he claim for F&F settlement?
Thank you
From India, Chennai
Acknowledge(0)Amend(0)
Please clarify the following:
1. Can he ask for any benefits for his 41 years of service as a peon?
2. He has not been promoted or had a grade change in his 41 years of service. Is he eligible for a stagnation allowance?
3. During his retirement, he was instructed to provide F&F settlement. However, he has not received anything except PF, Gratuity, and leave benefits. What does F&F stand for? Can he claim for F&F settlement?
Thank you
From India, Chennai
Acknowledge(0)Amend(0)
Continuous Service and Stagnation Increment
The long period of continuous service, as it is, on a particular post doesn't confer any special benefits on the employee. If the service rules applicable to such a post provide for what is called a "stagnation increment" beyond reaching the maximum in the timescale of pay, it alone is the additional benefit for such continuous long tenure in such a post. If there is no such rule or the salary/wages of such an individual are just consolidated ones, no such claim by the employee after his retirement would be legally sustainable.
Promotion and Grade Upgradation
The above answer is applicable to this question too in principle. Promotion cannot be claimed by an individual employee as a matter of right by the efflux of time unless there are grounds of victimization or punishment. Grade upgradation is a concept in place where all the employees of a particular grade cannot be advanced to the next higher grade for want of vacancies, that too if so provided in the service rules or in the Collective Bargaining Agreement.
Full and Final Settlement
Full and Final Settlement means the determination of all employment claims of an outgoing employee on his termination of employment in monetary terms as per the provisions of applicable laws or the contract of employment, depending on the nature of his/her termination. From your last post, it appears that your compliance is sufficient.
From India, Salem
Acknowledge(1)Amend(0)
The long period of continuous service, as it is, on a particular post doesn't confer any special benefits on the employee. If the service rules applicable to such a post provide for what is called a "stagnation increment" beyond reaching the maximum in the timescale of pay, it alone is the additional benefit for such continuous long tenure in such a post. If there is no such rule or the salary/wages of such an individual are just consolidated ones, no such claim by the employee after his retirement would be legally sustainable.
Promotion and Grade Upgradation
The above answer is applicable to this question too in principle. Promotion cannot be claimed by an individual employee as a matter of right by the efflux of time unless there are grounds of victimization or punishment. Grade upgradation is a concept in place where all the employees of a particular grade cannot be advanced to the next higher grade for want of vacancies, that too if so provided in the service rules or in the Collective Bargaining Agreement.
Full and Final Settlement
Full and Final Settlement means the determination of all employment claims of an outgoing employee on his termination of employment in monetary terms as per the provisions of applicable laws or the contract of employment, depending on the nature of his/her termination. From your last post, it appears that your compliance is sufficient.
From India, Salem
Acknowledge(1)Amend(0)
Thank you very much for your reply. I am requesting some more clarifications.
1. The said person was transferred from the marketing department to the administrative department in the year 2005. His (Post-Peon) nature of work was not changed. His duties included dispatching and delivery of goods until retirement. Can he claim any relief for the same?
2. He does not have any documents related to his appointment.
3. In 2003, the said company offered voluntary retirement to its staff but denied it to him.
4. He is now 60 years old and has no earnings, only having received 3 lakhs as retirement benefits.
5. He is also not aware of the retirement rules of his company.
Thank you.
From India, Chennai
Acknowledge(0)Amend(0)
1. The said person was transferred from the marketing department to the administrative department in the year 2005. His (Post-Peon) nature of work was not changed. His duties included dispatching and delivery of goods until retirement. Can he claim any relief for the same?
2. He does not have any documents related to his appointment.
3. In 2003, the said company offered voluntary retirement to its staff but denied it to him.
4. He is now 60 years old and has no earnings, only having received 3 lakhs as retirement benefits.
5. He is also not aware of the retirement rules of his company.
Thank you.
From India, Chennai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Employee Benefits.doc