Hi Seniors, I need your help. When an employee is terminated from the company on performance grounds, does the employer has to pay EL encashment to that employee. Shalini
From India, Bangalore
3From India, Bangalore
Dear Shalini Menon
I am surprised at your query. Such doubts which are not of a very technical nature, but can be solved by common sense, should not arise in the mind of a good HR professional.
Termination (on whatsoever grounds) is one thing and Full and Final payments are entirely another.
Do you mean to ask whether the company can usurp unlawfully the earnings of the ex-employee ??
If this would be considered legal, then would not every company go around terminating its employees as they reach their retirement age ??
Kindly find out what does EL stands for; its expanded form and meaning; which should give you a clue to the answer.
Some members may feel that it is to confirm their doubts; but such minor matters should not create doubts, if a person has a sense of principle of natural justice and fairness.
The best remedy or Test is to think of oneself as the one on which this action is proposed to be taken. It will immediately indicate whether the proposed action is fair or unfair/illegal.
Warm regards.
From India, Delhi
I am surprised at your query. Such doubts which are not of a very technical nature, but can be solved by common sense, should not arise in the mind of a good HR professional.
Termination (on whatsoever grounds) is one thing and Full and Final payments are entirely another.
Do you mean to ask whether the company can usurp unlawfully the earnings of the ex-employee ??
If this would be considered legal, then would not every company go around terminating its employees as they reach their retirement age ??
Kindly find out what does EL stands for; its expanded form and meaning; which should give you a clue to the answer.
Some members may feel that it is to confirm their doubts; but such minor matters should not create doubts, if a person has a sense of principle of natural justice and fairness.
The best remedy or Test is to think of oneself as the one on which this action is proposed to be taken. It will immediately indicate whether the proposed action is fair or unfair/illegal.
Warm regards.
From India, Delhi
Hi Shalini,
Definatly not,but in F&F you have to show the EL's encashment in the sheet and deduct the amount for notice period but by the law if the employee has been terminated then 2 month's salary has to pay by the approval of the management.
Regards,
Lethal_Abhi
From India, New Delhi
Definatly not,but in F&F you have to show the EL's encashment in the sheet and deduct the amount for notice period but by the law if the employee has been terminated then 2 month's salary has to pay by the approval of the management.
Regards,
Lethal_Abhi
From India, New Delhi
Dear Rajkumar,
Thanks for replying.
I have the same thoughts but just wanted to confirm with my seniors before taking a decision.
Let me share the scenario.The decision was taken because our client had to suffer monetory loss because of the employee. Employee has been given two months notice. So in that case do we again need to encash her leaves is my query?
Shalini
From India, Bangalore
Thanks for replying.
I have the same thoughts but just wanted to confirm with my seniors before taking a decision.
Let me share the scenario.The decision was taken because our client had to suffer monetory loss because of the employee. Employee has been given two months notice. So in that case do we again need to encash her leaves is my query?
Shalini
From India, Bangalore
Dear Shalini
Thanks for your response.
We keep on requesting members to always post their query along with necessary background information, to enable viewing the case in proper perspective and for better, specific responses.
Hope your doubts have been put to rest.
Warm regards.
From India, Delhi
Thanks for your response.
We keep on requesting members to always post their query along with necessary background information, to enable viewing the case in proper perspective and for better, specific responses.
Hope your doubts have been put to rest.
Warm regards.
From India, Delhi
Dear Shalini,
Perhaps, you have put this question for clearing your doubts. but be clear that EL should be encashed to the terminated employees, even if he is terminated on ground of bad performance. because as senior moderator said that the termination and full and final both are different.
Regards,
U.C. Kaushik
From India, Delhi
Perhaps, you have put this question for clearing your doubts. but be clear that EL should be encashed to the terminated employees, even if he is terminated on ground of bad performance. because as senior moderator said that the termination and full and final both are different.
Regards,
U.C. Kaushik
From India, Delhi
Dear Shalini El encashment to be paid at the time of sepration of an employee.let it be any reason for sepration.
From India, Delhi
From India, Delhi
Dear member , if EL not given at the time of full and final payment then what legal action can be?
From India, Faridabad
From India, Faridabad
Dear
Section 80 of the Factories Act, 1948 is dealing with Encashment of Leave, if any employee who has been rendered 12 month continuous service with the management and has been terminated on performance ground, even in this case he has to be compensated with payment of his leaves in credit at the the time of terminating his services. If an employee who have continuously worked for 4 months in any factory, will be eligible for encashment in case of termination of service by the management.
Regards
R B Yadav
Advocate
From India, Mumbai
Section 80 of the Factories Act, 1948 is dealing with Encashment of Leave, if any employee who has been rendered 12 month continuous service with the management and has been terminated on performance ground, even in this case he has to be compensated with payment of his leaves in credit at the the time of terminating his services. If an employee who have continuously worked for 4 months in any factory, will be eligible for encashment in case of termination of service by the management.
Regards
R B Yadav
Advocate
From India, Mumbai
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