Hi,
I was working in a company from May 2007 to Mar 2008. The offer letter included LTA as part of CTC. I have left the said company in March 2008; however, the company says that LTA can be claimed only after 1 year. I joined the company on May 9, 2007, and was on probation until Nov 2007, after which I was confirmed. I left the job in March 2008.
The HR says that LTA is applicable to a confirmed employee only after completion of one year of service. Can the company frame such rules? Is there any Act under which I can claim LTA?
When I asked whether I would get LTA on a pro-rata basis, they informed that it will be provided only to employees who have completed one year.
Is there any act on the basis of which I can claim? The FY 2007-08 has also passed; would they give? They have not included LTA in the full and final settlement, saying that it can be claimed only if a person has worked for more than 1 year.
I would be able to provide tickets/bills for the travel I made during the said year if it can be claimed. If you can provide the Act, I can follow up with them.
Thanks again,
Srinivas Mani
09833418230
From India, Mumbai
Acknowledge(0)
Amend(0)
I was working in a company from May 2007 to Mar 2008. The offer letter included LTA as part of CTC. I have left the said company in March 2008; however, the company says that LTA can be claimed only after 1 year. I joined the company on May 9, 2007, and was on probation until Nov 2007, after which I was confirmed. I left the job in March 2008.
The HR says that LTA is applicable to a confirmed employee only after completion of one year of service. Can the company frame such rules? Is there any Act under which I can claim LTA?
When I asked whether I would get LTA on a pro-rata basis, they informed that it will be provided only to employees who have completed one year.
Is there any act on the basis of which I can claim? The FY 2007-08 has also passed; would they give? They have not included LTA in the full and final settlement, saying that it can be claimed only if a person has worked for more than 1 year.
I would be able to provide tickets/bills for the travel I made during the said year if it can be claimed. If you can provide the Act, I can follow up with them.
Thanks again,
Srinivas Mani
09833418230
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Mani,
Payment of LTA and leave encashment is as per the company's policy. Statutory obligations arise only if you are covered under any statute like "worker" as defined by the Factories Act.
Regards,
SC
From India, Thane
Acknowledge(0)Amend(0)
47Payment of LTA and leave encashment is as per the company's policy. Statutory obligations arise only if you are covered under any statute like "worker" as defined by the Factories Act.
Regards,
SC
From India, Thane
Acknowledge(0)Amend(0)
LTA APPLICABLE?
Thanks Swastik. However, I am not a worker. I will provide the complete details about the matter as follows:
The following was my salary structure in the previous organization where the LTA was also included in my Annual CTC. I have also enclosed an attachment for the salary break-up. Please refer to the same. For your information, the company where I was working is a private bank, and I was a Manager in Mumbai.
Monthly Salary
Type of Salary Per Month
Basic Salary 14670
Conveyance 800
HRA 8500
Medical Reimbursement 1250
Other Allowance 7560
Sodexo Meal Coupons 910
Provident Fund 1760
Leave Travel Allowance Monthly Salary 35450
Annual Salary
Type of Salary Per Annum
Basic Salary 176040
Conveyance 9600
HRA 102000
Medical Reimbursement 15000
Other Allowance 90720
Sodexo Meal Coupons 10920
Provident Fund 21120
Leave Travel Allowance 14670
Annual CTC 440070
After submitting my resignation and before the full and final settlement, I had verbally asked HR for payment of LTA. However, HR informed me that this benefit is applicable to employees who have completed one year of service.
My appointment/offer letter from the company stated the following concerning LTA:
"You are entitled to claim LTA only after completion of one year of service in the company."
Can you confirm now, with the complete details provided above, whether I can claim LTA from them? If they inform me that I am not eligible, how should I proceed further to claim LTA? There may be relevant cases or judgments I can refer to if applicable.
Regards
Srinivas Mani
09833418230
Email: shrinivasmani@yahoo.com
From India, Mumbai
Acknowledge(0)Amend(0)
Thanks Swastik. However, I am not a worker. I will provide the complete details about the matter as follows:
The following was my salary structure in the previous organization where the LTA was also included in my Annual CTC. I have also enclosed an attachment for the salary break-up. Please refer to the same. For your information, the company where I was working is a private bank, and I was a Manager in Mumbai.
Monthly Salary
Type of Salary Per Month
Basic Salary 14670
Conveyance 800
HRA 8500
Medical Reimbursement 1250
Other Allowance 7560
Sodexo Meal Coupons 910
Provident Fund 1760
Leave Travel Allowance Monthly Salary 35450
Annual Salary
Type of Salary Per Annum
Basic Salary 176040
Conveyance 9600
HRA 102000
Medical Reimbursement 15000
Other Allowance 90720
Sodexo Meal Coupons 10920
Provident Fund 21120
Leave Travel Allowance 14670
Annual CTC 440070
After submitting my resignation and before the full and final settlement, I had verbally asked HR for payment of LTA. However, HR informed me that this benefit is applicable to employees who have completed one year of service.
My appointment/offer letter from the company stated the following concerning LTA:
"You are entitled to claim LTA only after completion of one year of service in the company."
Can you confirm now, with the complete details provided above, whether I can claim LTA from them? If they inform me that I am not eligible, how should I proceed further to claim LTA? There may be relevant cases or judgments I can refer to if applicable.
Regards
Srinivas Mani
09833418230
Email: shrinivasmani@yahoo.com
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Mani,
If your company policy states that you become eligible for LTA after one year, then you cannot claim LTA if you leave the organization without completing one year. The classic example to support my point is the payment of Gratuity.
Regards,
Swastik
From India, Thane
Acknowledge(0)Amend(0)
If your company policy states that you become eligible for LTA after one year, then you cannot claim LTA if you leave the organization without completing one year. The classic example to support my point is the payment of Gratuity.
Regards,
Swastik
From India, Thane
Acknowledge(0)Amend(0)
Hi,
I have been informed by one of the members that since LTA is a part of my CTC which was agreed upon at the time of appointment, of course, I will be entitled to LTA after one year of service because it is normally a yearly paid benefit. However, in the case of Full & Final settlement, I have the right to claim all due amounts until the date you served with the company. It is another matter that it will be taxable.
Kindly clarify, can I take up the matter with the company on this point.
Thanks & Regards,
Srinivas Mani
09833418230
From India, Mumbai
Acknowledge(0)Amend(0)
I have been informed by one of the members that since LTA is a part of my CTC which was agreed upon at the time of appointment, of course, I will be entitled to LTA after one year of service because it is normally a yearly paid benefit. However, in the case of Full & Final settlement, I have the right to claim all due amounts until the date you served with the company. It is another matter that it will be taxable.
Kindly clarify, can I take up the matter with the company on this point.
Thanks & Regards,
Srinivas Mani
09833418230
From India, Mumbai
Acknowledge(0)Amend(0)
Hi,
I have been informed by one of the members that since LTA is a part of my CTC which was agreed at the time of appointment, of course I will be entitled to LTA after one year of service because it is normally a yearly paid benefit. But in the case of Full & Final settlement, I have the right to claim all due amounts until the date you served with the company. It is another matter that it will be taxable. Kindly clarify, can I take up the matter with the company on this point.
Thanks & Regards,
Srinivas Mani
09833418230
The member has informed you correctly. Please take up the matter and get the money after paying the taxes! And I was just a recent joinee and am confused about your statement that you are not a worker as per the Factories Act. Are you sure? Check the act, and it may reveal that you are a worker. Any comments from the experts on this aspect of exempted employees and supervisory/managerial staff claiming that they are NOT workers?
Regards,
Sathish
From India, Mumbai
Acknowledge(0)Amend(0)
I have been informed by one of the members that since LTA is a part of my CTC which was agreed at the time of appointment, of course I will be entitled to LTA after one year of service because it is normally a yearly paid benefit. But in the case of Full & Final settlement, I have the right to claim all due amounts until the date you served with the company. It is another matter that it will be taxable. Kindly clarify, can I take up the matter with the company on this point.
Thanks & Regards,
Srinivas Mani
09833418230
The member has informed you correctly. Please take up the matter and get the money after paying the taxes! And I was just a recent joinee and am confused about your statement that you are not a worker as per the Factories Act. Are you sure? Check the act, and it may reveal that you are a worker. Any comments from the experts on this aspect of exempted employees and supervisory/managerial staff claiming that they are NOT workers?
Regards,
Sathish
From India, Mumbai
Acknowledge(0)Amend(0)Gathering data for an AI comment.... Sending emails to relevant members...
Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Employee Benefit policies guide.pdf