I need some clarification regarding paid leave in the final settlement (FNF) for a retail company in Chennai, Tamil Nadu. The issue is that the company deducted 7000 INR for 7 days of paid leave in an employee's FNF. When the employee contacted HR for an explanation, HR stated that there are 21 days of paid leave per year, and the employee had used 17 days from January to July. The paid leave was approved by the reporting manager for chickenpox in March. In July, the employee applied for 7 days, of which 4 days were approved, and 3 days were rejected. The employee submitted a resignation on July 12th and was relieved on July 20th.
According to HR's calculation, they deduct 1.75 days per month, which amounts to 1.75 x 7 for deduction. However, the employee claims to have 3 more days available for July. The employee applies for leave using PeopleWorks software, which has limitations. If there is pending leave, the system will not accept it, even if the reporting manager approves it. HR claims the amount has already been paid as paid leave. No extra amount is credited in the salary, and last year's pending paid leave is also not credited or mentioned in the payslip.
From India, Chennai
Acknowledge(0)
Amend(0)
According to HR's calculation, they deduct 1.75 days per month, which amounts to 1.75 x 7 for deduction. However, the employee claims to have 3 more days available for July. The employee applies for leave using PeopleWorks software, which has limitations. If there is pending leave, the system will not accept it, even if the reporting manager approves it. HR claims the amount has already been paid as paid leave. No extra amount is credited in the salary, and last year's pending paid leave is also not credited or mentioned in the payslip.
From India, Chennai
Acknowledge(0)Amend(0)
In this scenario, it's essential to review the company's leave policy and the relevant labor laws to determine the correct application of paid leave deductions in the final settlement (FNF). Here are some steps to address this issue:
1. Review the Company's Leave Policy: Check the company's HR policy or employment contract to understand the rules and regulations regarding paid leave entitlement, accrual, approval process, and settlement upon resignation.
2. Verify Leave Balances: Cross-verify the employee's leave balances for the year to ensure accurate deduction calculations. Consider any carry-over leave from the previous year that might impact the current year's entitlement.
3. Clarify Approval Process: Understand the discrepancies in the leave approval process between the employee, reporting manager, and the HR system. Ensure that all approved leaves are correctly reflected in the system.
4. Communicate with HR: Arrange a meeting with HR to discuss the concerns raised by the employee regarding the paid leave deduction. Seek clarification on the calculation method used and the discrepancy in the available leave days.
5. Request Payroll Reconciliation: If there are discrepancies in the paid leave deductions and salary credits, request a detailed payroll reconciliation to identify any errors or omissions in the final settlement.
6. Escalate if Necessary: If the issue remains unresolved, escalate the matter to higher management or seek guidance from legal advisors to ensure compliance with labor laws and fair treatment of the employee.
By following these steps and addressing the concerns raised by the employee, you can work towards resolving the paid leave deduction issue effectively and transparently.
From India, Gurugram
Acknowledge(0)Amend(0)
541. Review the Company's Leave Policy: Check the company's HR policy or employment contract to understand the rules and regulations regarding paid leave entitlement, accrual, approval process, and settlement upon resignation.
2. Verify Leave Balances: Cross-verify the employee's leave balances for the year to ensure accurate deduction calculations. Consider any carry-over leave from the previous year that might impact the current year's entitlement.
3. Clarify Approval Process: Understand the discrepancies in the leave approval process between the employee, reporting manager, and the HR system. Ensure that all approved leaves are correctly reflected in the system.
4. Communicate with HR: Arrange a meeting with HR to discuss the concerns raised by the employee regarding the paid leave deduction. Seek clarification on the calculation method used and the discrepancy in the available leave days.
5. Request Payroll Reconciliation: If there are discrepancies in the paid leave deductions and salary credits, request a detailed payroll reconciliation to identify any errors or omissions in the final settlement.
6. Escalate if Necessary: If the issue remains unresolved, escalate the matter to higher management or seek guidance from legal advisors to ensure compliance with labor laws and fair treatment of the employee.
By following these steps and addressing the concerns raised by the employee, you can work towards resolving the paid leave deduction issue effectively and transparently.
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
LEAVE ENCASHMENT NOT INCLUDED IN WAGES FOR P. F. CALCULATION.pdf
Why did this talented employee leave.doc