Want to know certain info regards to Full & final Settlement. There was one employee who was terminated while he was on probation period & then according to the policy we proceeded with his full & final settlement called him 2 times.
In 1st meeting he didn't turned up & 2nd time he came in but he was not ready to accept as their were certain deduction as per the company policy.
We also dropped him MOM, till what time we should hold his F & F or should we go ahead & drop him a mail of revoking his F & F settlement process.
From India, Mumbai
2In 1st meeting he didn't turned up & 2nd time he came in but he was not ready to accept as their were certain deduction as per the company policy.
We also dropped him MOM, till what time we should hold his F & F or should we go ahead & drop him a mail of revoking his F & F settlement process.
From India, Mumbai
Dear Trupti,
The term " F&F Settlement " refers to the settlement of all the dues to an employee consequent on the termination of his/her employment.
Apart from the wage/salary due for the last wage period up to and inclusive of the date of termination of employment, the components of statutory terminal dues and the time limit of their disbursement depends upon the nature of termination. They are leave salary, unpaid bonus, gratuity, notice pay and/or retrenchment compensation as the case be.
In the case of discharge simpliciter as per the contract of employment, notice salary if no notice is issued by the employer has to be paid additionally.
In case of resignation or dismissal, leave salary for the E.L at the credit of the employee and proportionate bonus for the service rendered in the accounting year if eligible in addition to other terminal benefits have to be paid.
In case of retrenchment, retrenchment compensation @ 15 days average pay for every year of completed service should be paid in addition to other terminal benefits at the time of retrenchment itself.
In case of retirement on attaining the age of superannuation all the dues including gratuity should be paid.
Coming to the time limit for their actual payment, notice pay and retrenchment compensation should be paid on the same day itself. Gratuity should be paid within 30 days of termination of employment and in case of any dispute the amount as per the calculation of the employer should be deposited with the Controlling Authority under the P.G Act,1972 within the same period. Bonus for the AY can be paid after its declaration but before the expiry of 8 months from the close of the AY.
If the ex-employee fails to turn up or refuses to receive the amounts on the ground of miscalculation, you can send him a memo explaining the correctness of your calculation and fix a dead line for him to receive the amount on proper vouchers failing which you would be at liberty to deposit the amounts as per Law. If there is provision in your State Labor Welfare Fund Act, you can remit all amounts other than gratuity into the unclaimed amounts account of the Welfare Board under intimation to the ex-employee.
From India, Salem
The term " F&F Settlement " refers to the settlement of all the dues to an employee consequent on the termination of his/her employment.
Apart from the wage/salary due for the last wage period up to and inclusive of the date of termination of employment, the components of statutory terminal dues and the time limit of their disbursement depends upon the nature of termination. They are leave salary, unpaid bonus, gratuity, notice pay and/or retrenchment compensation as the case be.
In the case of discharge simpliciter as per the contract of employment, notice salary if no notice is issued by the employer has to be paid additionally.
In case of resignation or dismissal, leave salary for the E.L at the credit of the employee and proportionate bonus for the service rendered in the accounting year if eligible in addition to other terminal benefits have to be paid.
In case of retrenchment, retrenchment compensation @ 15 days average pay for every year of completed service should be paid in addition to other terminal benefits at the time of retrenchment itself.
In case of retirement on attaining the age of superannuation all the dues including gratuity should be paid.
Coming to the time limit for their actual payment, notice pay and retrenchment compensation should be paid on the same day itself. Gratuity should be paid within 30 days of termination of employment and in case of any dispute the amount as per the calculation of the employer should be deposited with the Controlling Authority under the P.G Act,1972 within the same period. Bonus for the AY can be paid after its declaration but before the expiry of 8 months from the close of the AY.
If the ex-employee fails to turn up or refuses to receive the amounts on the ground of miscalculation, you can send him a memo explaining the correctness of your calculation and fix a dead line for him to receive the amount on proper vouchers failing which you would be at liberty to deposit the amounts as per Law. If there is provision in your State Labor Welfare Fund Act, you can remit all amounts other than gratuity into the unclaimed amounts account of the Welfare Board under intimation to the ex-employee.
From India, Salem
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Full n final settlement.doc