Dear All,
I have following query:
In our company an Employee has joined in month of 1st Jan 2009 & resigned in the month of 31st October 2009. In his appointment letter it is clearly mentioned that he will eligible for LTA & Medical after completion of one year service & accordingly we made full & final statement but he refuse to accept it & says the will go to the labour office.
According to the concern employee:
1) LTA & Medical is part of his CTC & it should calculate on pro rata basis.
2) As per the factory act he has worked more than 240days. Means worked one year.
3) If any employee completed 4 year and 240days he is applicable for 5 years gratuity.
4) Last but not least company's standing orders are not certified with the labour office.
You advise will be highly appreciated.
Bala Panmand
From India, Mumbai
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5I have following query:
In our company an Employee has joined in month of 1st Jan 2009 & resigned in the month of 31st October 2009. In his appointment letter it is clearly mentioned that he will eligible for LTA & Medical after completion of one year service & accordingly we made full & final statement but he refuse to accept it & says the will go to the labour office.
According to the concern employee:
1) LTA & Medical is part of his CTC & it should calculate on pro rata basis.
2) As per the factory act he has worked more than 240days. Means worked one year.
3) If any employee completed 4 year and 240days he is applicable for 5 years gratuity.
4) Last but not least company's standing orders are not certified with the labour office.
You advise will be highly appreciated.
Bala Panmand
From India, Mumbai
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According to the concerned employee:
1) LTA & Medical is part of his CTC and it should be calculated on a pro-rata basis. - He is absolutely correct!
2) As per the Factory Act, he has worked more than 240 days, which means he has worked for one year. - 240 days represent physical attendance, not months.
3) If any employee has completed 4 years and 240 days, he is eligible for 5 years of gratuity. - Yes.
4) Last but not least, the company's standing orders are not certified with the labor office. - Get it certified at the earliest.
From India, Pune
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1) LTA & Medical is part of his CTC and it should be calculated on a pro-rata basis. - He is absolutely correct!
2) As per the Factory Act, he has worked more than 240 days, which means he has worked for one year. - 240 days represent physical attendance, not months.
3) If any employee has completed 4 years and 240 days, he is eligible for 5 years of gratuity. - Yes.
4) Last but not least, the company's standing orders are not certified with the labor office. - Get it certified at the earliest.
From India, Pune
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Hi,
If an employee has completed 240 working days, it amounts to the completion of 1 year of service as per the law. In your case, the said employee had worked for 300 days. If you subtract all Sundays or the weekly offs, which should be approximately 43 days, then the total working days come to 257 working days. Therefore, he had worked for more than 240 days, which means he had completed 1 year of service as per the Factories Act.
He is eligible for the benefits of LTA and Medical allowances on a pro-rata basis. Additionally, any remaining leaves in his account should be paid along with a bonus for the 10-month period.
Regarding Standing Orders, if a company has an employee strength of 50 or more, they should have standing orders approved by the Labour Commissioner's office. It is a statutory requirement and a must. If there are fewer than 50 employees, there is no need for standing orders certification or registration.
Mohan Rao
Manager HR
From India, Visakhapatnam
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If an employee has completed 240 working days, it amounts to the completion of 1 year of service as per the law. In your case, the said employee had worked for 300 days. If you subtract all Sundays or the weekly offs, which should be approximately 43 days, then the total working days come to 257 working days. Therefore, he had worked for more than 240 days, which means he had completed 1 year of service as per the Factories Act.
He is eligible for the benefits of LTA and Medical allowances on a pro-rata basis. Additionally, any remaining leaves in his account should be paid along with a bonus for the 10-month period.
Regarding Standing Orders, if a company has an employee strength of 50 or more, they should have standing orders approved by the Labour Commissioner's office. It is a statutory requirement and a must. If there are fewer than 50 employees, there is no need for standing orders certification or registration.
Mohan Rao
Manager HR
From India, Visakhapatnam
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