Dear All,
Can anybody tell me within how many days the full and final settlement is cleared from the date of resignation by the employees? What are the rules and regulations regarding it, and what are the drawbacks of non-payment after a month?
Thanks and Regards,
Rajneesh Srivastav
Mob: 9920714522
From India, Mumbai
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5Can anybody tell me within how many days the full and final settlement is cleared from the date of resignation by the employees? What are the rules and regulations regarding it, and what are the drawbacks of non-payment after a month?
Thanks and Regards,
Rajneesh Srivastav
Mob: 9920714522
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Rajneesh Srivastav,
This query is somewhat difficult, and because of this, most of the members are not coming forward to attempt this particular query. Moreover, as there is no specific law relating to full and final settlement of dues to be made for the employee/worker/officer who is not covered under any of the labor laws or covered under any of the laws, e.g., The Payment of Gratuity Act. To give a proper reply, one has to examine under which labor laws/other law the employee is entitled to payment from the employer. The position may also be different if someone resigns or if their services are terminated by the employer. For example, if a person resigns from a service covered under The Factories Act, 1948, then encashment of the EL will be made on or before the next payday. However, if the employment is terminated, then as per section 79(11), the encashment of EL shall be made before the second working day after such termination. If the establishment is covered under the Shops Act, then we need to refer to the provisions of the respective State Shops and Commercial Establishment Act for encashment of EL. Similarly, if bonus is applicable to the unit, then it will be paid or may be paid within eight months from the close of the accounting year. Gratuity, if payable, should be settled within 30 days. Thus, one has to examine each and every head of payment for this query.
Regards,
R.N.Khola
(Labour Law and Legal Consultants)
09810405361
From India, Delhi
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This query is somewhat difficult, and because of this, most of the members are not coming forward to attempt this particular query. Moreover, as there is no specific law relating to full and final settlement of dues to be made for the employee/worker/officer who is not covered under any of the labor laws or covered under any of the laws, e.g., The Payment of Gratuity Act. To give a proper reply, one has to examine under which labor laws/other law the employee is entitled to payment from the employer. The position may also be different if someone resigns or if their services are terminated by the employer. For example, if a person resigns from a service covered under The Factories Act, 1948, then encashment of the EL will be made on or before the next payday. However, if the employment is terminated, then as per section 79(11), the encashment of EL shall be made before the second working day after such termination. If the establishment is covered under the Shops Act, then we need to refer to the provisions of the respective State Shops and Commercial Establishment Act for encashment of EL. Similarly, if bonus is applicable to the unit, then it will be paid or may be paid within eight months from the close of the accounting year. Gratuity, if payable, should be settled within 30 days. Thus, one has to examine each and every head of payment for this query.
Regards,
R.N.Khola
(Labour Law and Legal Consultants)
09810405361
From India, Delhi
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Full n final settlement.doc