Sirs,
We are following the practice of medical allowance is disbursed bymonthly and LTA yearly. Now my question is if a person has resigned in 1.5year tenure, whether he is eligible for part payment of med/Lta and what is the legal procedure of this
Regads,
Revathy
From India, Madras
We are following the practice of medical allowance is disbursed bymonthly and LTA yearly. Now my question is if a person has resigned in 1.5year tenure, whether he is eligible for part payment of med/Lta and what is the legal procedure of this
Regads,
Revathy
From India, Madras
Dear Revathy,
It depends on how your policies for medical & LTA have been framed.
As per our company practice, we follow a pro-rata method, which means that if the person has claimed LTA for two years but has left within 1.5 years the pro-rated half-year claim is recoverable from the employee. Similarly a calculation is done for medical.
However, in case the amounts claimed are less than what the pro-rated amount is shown to be, then we pay the same to the employee as part of his full & final settlement amount.
Hope this helps.
From India, New Delhi
8It depends on how your policies for medical & LTA have been framed.
As per our company practice, we follow a pro-rata method, which means that if the person has claimed LTA for two years but has left within 1.5 years the pro-rated half-year claim is recoverable from the employee. Similarly a calculation is done for medical.
However, in case the amounts claimed are less than what the pro-rated amount is shown to be, then we pay the same to the employee as part of his full & final settlement amount.
Hope this helps.
From India, New Delhi
I also agree with Swapna that it depends on your policy. In normal case it is paid on pro-rata basis. Regards, Sree
From United States
From United States
Sirs,
Thanks for your reply and let i know as per appointment order it shows "no LTA and medical encashment will be paid on pro-rata basis if the person has resigned in the middle of the year". I am asking what is the legal procedure?. Whether the employee is eligible for this amount.
Regards
Revathy
From India, Madras
Thanks for your reply and let i know as per appointment order it shows "no LTA and medical encashment will be paid on pro-rata basis if the person has resigned in the middle of the year". I am asking what is the legal procedure?. Whether the employee is eligible for this amount.
Regards
Revathy
From India, Madras
Dear Revathy,
As per the appointment letter the employee is not eligible and he can't go for any legal procedings against this. But I think if it is part of his CTC then how can u put such a clause in the appointment letter. Personally i am not agreeying with that condition. As per my opinion if it is part of the employee's CTC then he is eligible for the benefits.
Regards,
Sreekanth
From United States
As per the appointment letter the employee is not eligible and he can't go for any legal procedings against this. But I think if it is part of his CTC then how can u put such a clause in the appointment letter. Personally i am not agreeying with that condition. As per my opinion if it is part of the employee's CTC then he is eligible for the benefits.
Regards,
Sreekanth
From United States
Hi
Employers are not under any binding agreement under any statute to pay LTA and/or Medical Allowances at the time of exit to any employee.
It is entirely guided by the Standard Operating HR Practices / Guidelines that govern a employee. This clauses needs to be specifically mentioned in the Service Agreements, in this case which has been done.
So nothing stopping you from not paying that. But you know we tend to save on such small amounts and in the process we trade off with the image of our company.
So my suggestion would be - go ahead and pay it after u hv obtained a buy in from uor Sr Mgt. No legal provisions is going to stop u from doing that either :-)
Thanks
Abhisek Majumdar
From India, Bangalore
Employers are not under any binding agreement under any statute to pay LTA and/or Medical Allowances at the time of exit to any employee.
It is entirely guided by the Standard Operating HR Practices / Guidelines that govern a employee. This clauses needs to be specifically mentioned in the Service Agreements, in this case which has been done.
So nothing stopping you from not paying that. But you know we tend to save on such small amounts and in the process we trade off with the image of our company.
So my suggestion would be - go ahead and pay it after u hv obtained a buy in from uor Sr Mgt. No legal provisions is going to stop u from doing that either :-)
Thanks
Abhisek Majumdar
From India, Bangalore
Dear Revathi,
I agree with Mr. Abhishek and you are not at all any legal risk. As Mr. Abhishek said this is a meger amount and if you look at the company's image you should pay it off to the employee, because it matters to him much. You try to convince your sr. mgmt and try to pay it.
Best of luck.
Sreekanth
From United States
I agree with Mr. Abhishek and you are not at all any legal risk. As Mr. Abhishek said this is a meger amount and if you look at the company's image you should pay it off to the employee, because it matters to him much. You try to convince your sr. mgmt and try to pay it.
Best of luck.
Sreekanth
From United States
dear revathy, I agree with the team members. It depends on the policy. In our organisation, we recover on pro-rata basis..even if we cover it in CTC REGARDS MAUSAM
Revathy,
The LTA and Medical reimbursements are PART of the salary and are given quarterly or annualy for the ease of adminstrative purpose. Also as this is the CTC the employer cannot deny this amount to the parting employee.
So when the full and final settlement is made, these should be calculated and given to the employee.
Also when employees are treated fairly they will leave the organization in good faith else there will be negative publicity and gradullay it may impact the organization in long run.
Cordially,
preet
From India, Bangalore
The LTA and Medical reimbursements are PART of the salary and are given quarterly or annualy for the ease of adminstrative purpose. Also as this is the CTC the employer cannot deny this amount to the parting employee.
So when the full and final settlement is made, these should be calculated and given to the employee.
Also when employees are treated fairly they will leave the organization in good faith else there will be negative publicity and gradullay it may impact the organization in long run.
Cordially,
preet
From India, Bangalore
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Full n final settlement.doc
Final settlement - dubai.xls