I am working in a manufacturing company where the Factory Act of 1952 applies. I would like to know the process for when a laborer leaves the job. In that case, what kind of formalities do I need to complete for their full and final settlement?
Thank you.
From India, Bagpat
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3Thank you.
From India, Bagpat
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Dear Jyoti, I think that your query relates to the settlement of final dues for certain employees who resigned voluntarily with formal acceptance from management.
Terminal benefits to be paid:
1) Salary for the Earned Leave credited to the employee. It should be calculated proportionately based on the monthly gross salary.
2) Gratuity under the Payment of Gratuity Act, 1972, at 15 days of the last drawn salary (total of basic pay + D.A only) for every completed year of service for those who have served a minimum of 4 years and 8 months.
3) Proportionate bonus for the period worked in the accounting year.
Please let me know if you need further clarification or assistance.
Thank you.
From India, Salem
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Terminal benefits to be paid:
1) Salary for the Earned Leave credited to the employee. It should be calculated proportionately based on the monthly gross salary.
2) Gratuity under the Payment of Gratuity Act, 1972, at 15 days of the last drawn salary (total of basic pay + D.A only) for every completed year of service for those who have served a minimum of 4 years and 8 months.
3) Proportionate bonus for the period worked in the accounting year.
Please let me know if you need further clarification or assistance.
Thank you.
From India, Salem
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Full n final settlement.doc