Hi,
I am looking for advice on full and final settlement. My case is:
We have two parts of salary, one is fixed, and the other is reimbursement. As per the appointment letter, an employee can give one month's notice or salary in lieu of notice.
So, while calculating the full and final settlement of the employee, can we take both the salary into account? Or should we only consider the salary part since reimbursement is not mentioned in the appointment letter?
For example:
If A is getting a salary of Rs. 25,000 per month and Rs. 5,000 as reimbursement, if he resigns and gives a notice of 15 days, should we calculate the full and final settlement based on the Rs. 25,000 salary only or on salary + reimbursement?
Your inputs are highly appreciated.
Thanks,
Mohit
From India, Ludhiana
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3I am looking for advice on full and final settlement. My case is:
We have two parts of salary, one is fixed, and the other is reimbursement. As per the appointment letter, an employee can give one month's notice or salary in lieu of notice.
So, while calculating the full and final settlement of the employee, can we take both the salary into account? Or should we only consider the salary part since reimbursement is not mentioned in the appointment letter?
For example:
If A is getting a salary of Rs. 25,000 per month and Rs. 5,000 as reimbursement, if he resigns and gives a notice of 15 days, should we calculate the full and final settlement based on the Rs. 25,000 salary only or on salary + reimbursement?
Your inputs are highly appreciated.
Thanks,
Mohit
From India, Ludhiana
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Both you will calculate salary + reimbursement. Revocer 15 days notice perioud. Sanju Joshi
From India, Ahmadabad
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From India, Ahmadabad
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My $0.02
Reimbursements would be at the actual/fixed limit and will be REIMBURSED on demand/salary time. As the employee is to be made full and final, kindly demand all reimbursements that are to be claimed by him/her. If not claimed, an additional token of reimbursement can be added on as a departing gift (and to avoid future claims if any).
From India, Mumbai
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Reimbursements would be at the actual/fixed limit and will be REIMBURSED on demand/salary time. As the employee is to be made full and final, kindly demand all reimbursements that are to be claimed by him/her. If not claimed, an additional token of reimbursement can be added on as a departing gift (and to avoid future claims if any).
From India, Mumbai
Acknowledge(0)Amend(0)Full and final settlement
[LEFT]Payable: - Salary
Bonus
Leave encashment
Gratuity
Traveling expenses
Sunday working day
Medical expenses reimbursement
Motor car / scooter expenses
Receivable: - Advance against salary
Loan
Imprest (Advance Money for example, for clothing, accommodation, and the company will cut the money after 4 to 5 months from the salary)
Tour advance
Notice pay
Income tax
Interest on loan
Payable minus receivable = Full and Final Settlement
From India, Mumbai
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Full and final settlement includes payments for salary, bonus, leave encashment, gratuity, traveling expenses, Sunday working day, medical expenses reimbursement, and motor car/scooter expenses. Amounts receivable are advance against salary, loan, imprest (advance money for items like clothing and accommodation, which the company deducts from the salary after 4 to 5 months), tour advance, notice pay, income tax, and interest on the loan. The formula for calculating the final settlement amount is Payable minus Receivable equals FF S. It's important to note that the settlement process varies between companies.
From India, Mumbai
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From India, Mumbai
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Dear Mohit,
To the best of my knowledge, as per the appointment letter, only you have to complete the full and final settlement. If the company wishes to terminate an employee by offering or paying the mentioned amount of Rs. 5000, then you should consider that amount. Otherwise, the employee may take legal action against you for unethical practices.
Prashant
09850401160
From India, Pune
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To the best of my knowledge, as per the appointment letter, only you have to complete the full and final settlement. If the company wishes to terminate an employee by offering or paying the mentioned amount of Rs. 5000, then you should consider that amount. Otherwise, the employee may take legal action against you for unethical practices.
Prashant
09850401160
From India, Pune
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look what we use to do with our employee is that during full n final settelmente use to calculate his salary as per his attendance and also his earned eave which ever is due to him.
From India, Calcutta
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From India, Calcutta
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Dear,
I have gone through your query and an individual is entitled to all reimbursements until he is working with you. If he is working on notice period also, then also he should be paid reimbursement.
Regards,
J.S. Malik
[QUOTE=s_n_mohit;741396]
Hi, I am looking for advice on full and final settlement. My case is:
We have two parts of salary, one is fixed and the other is reimbursement. As per the appointment letter, an employee can give one month's notice or salary in lieu of notice.
So, while calculating the full and final of the employee, can we take both the salary into account? Or can we take only the salary part since we have not mentioned reimbursement in the appointment letter?
For example:
A is getting a salary of Rs. 25,000 per month and Rs. 5,000 as reimbursement. If he resigns and gives a notice of 15 days, should we calculate the full and final on Rs. 25,000 salary or on salary + reimbursement?
Your inputs are highly appreciated.
Thanks,
Mohit
From India, Delhi
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I have gone through your query and an individual is entitled to all reimbursements until he is working with you. If he is working on notice period also, then also he should be paid reimbursement.
Regards,
J.S. Malik
[QUOTE=s_n_mohit;741396]
Hi, I am looking for advice on full and final settlement. My case is:
We have two parts of salary, one is fixed and the other is reimbursement. As per the appointment letter, an employee can give one month's notice or salary in lieu of notice.
So, while calculating the full and final of the employee, can we take both the salary into account? Or can we take only the salary part since we have not mentioned reimbursement in the appointment letter?
For example:
A is getting a salary of Rs. 25,000 per month and Rs. 5,000 as reimbursement. If he resigns and gives a notice of 15 days, should we calculate the full and final on Rs. 25,000 salary or on salary + reimbursement?
Your inputs are highly appreciated.
Thanks,
Mohit
From India, Delhi
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My question is still unanswered. I want to know if someone resigns from the company, can the company include salary + reimbursement while recovering the notice period. I have gone through your query, and an individual is entitled to all reimbursements until he is working with you. If he is working on the notice period also, then he should be paid reimbursements.
Regards,
J. S. Malik
QUOTE=s_n_mohit;741396]Hi I am looking for advice on full and final settlement. My case is:
We have two parts of salary, one is fixed and the other is reimbursement. As per the appointment letter, an employee can give one month's notice or salary in lieu of notice.
So while calculating the full and final of the employee, can we take both the salary into account? Or can we take only the salary part since we have not mentioned reimbursement in the appointment letter?
For Example:
A is getting a salary of Rs. 25,000 per month and Rs. 5,000 reimbursement. If he resigns and gives a notice of 15 days, will we calculate full and final on Rs. 25,000 salary or on salary + reimbursement?
Your inputs are highly appreciated.
Thanks,
Mohit
From India, Ludhiana
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Regards,
J. S. Malik
QUOTE=s_n_mohit;741396]Hi I am looking for advice on full and final settlement. My case is:
We have two parts of salary, one is fixed and the other is reimbursement. As per the appointment letter, an employee can give one month's notice or salary in lieu of notice.
So while calculating the full and final of the employee, can we take both the salary into account? Or can we take only the salary part since we have not mentioned reimbursement in the appointment letter?
For Example:
A is getting a salary of Rs. 25,000 per month and Rs. 5,000 reimbursement. If he resigns and gives a notice of 15 days, will we calculate full and final on Rs. 25,000 salary or on salary + reimbursement?
Your inputs are highly appreciated.
Thanks,
Mohit
From India, Ludhiana
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Hi all,
I am attaching the full and final working sheet. I am following the same in our organization. If anyone can shed some more light on that with some additions, that would be great.
Thanks and Regards,
Swati Arul D.
From China
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I am attaching the full and final working sheet. I am following the same in our organization. If anyone can shed some more light on that with some additions, that would be great.
Thanks and Regards,
Swati Arul D.
From China
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The data provided by members is correct, but you have forgotten to adjust the Statutory Deductions like PF & PT. Please do not forget, any statutory obligation should be considered even though an employee has resigned. Based on the Date of Resignation, PF & PT should be adjusted and remitted.
Mahesh
From India, Madras
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Mahesh
From India, Madras
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Hi,
I understand your point and I am trying to validate it. We can only take the fixed salary into consideration while computing the full and final settlement, and the employee is eligible for reimbursement up to the date he has worked with the organization. The organization cannot make any recovery or stop the reimbursement part of the employee.
Thanks,
Mohit
From India, Ludhiana
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I understand your point and I am trying to validate it. We can only take the fixed salary into consideration while computing the full and final settlement, and the employee is eligible for reimbursement up to the date he has worked with the organization. The organization cannot make any recovery or stop the reimbursement part of the employee.
Thanks,
Mohit
From India, Ludhiana
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Dear, You can calculat salary + reimbursement, because the reimbursement is a part of CTC.
From India, Kashipur
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From India, Kashipur
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Full n final settlement.doc