Dear seniors,
Please clarify on the following.
We are from a Retail group and we are planning to consider the F&F settlements of resigned employees separately from regular payroll.
For eg if one employee puts his resignation on 15th July and he serves 1 month notice period as per agreement and get relived on Aug 15th. So can we give his whole July and Aug salary(till 15th) at a time as F&F.
Other case would be if any employee does not willing to serve complete notice period can we hold back his salary completely.
Please clarify if any employee benefit rules or labour laws apply on these.
Request to advice and thanks in advance
From India, Hyderabad
69Please clarify on the following.
We are from a Retail group and we are planning to consider the F&F settlements of resigned employees separately from regular payroll.
For eg if one employee puts his resignation on 15th July and he serves 1 month notice period as per agreement and get relived on Aug 15th. So can we give his whole July and Aug salary(till 15th) at a time as F&F.
Other case would be if any employee does not willing to serve complete notice period can we hold back his salary completely.
Please clarify if any employee benefit rules or labour laws apply on these.
Request to advice and thanks in advance
From India, Hyderabad
You can not view your system/ proposed system of Full and Final settlement from Legal point of view because your system lacks logic. legally, you can not hold salary of an employee (who might have put his papers) beyond seven days of wage period. That means, if the date of resignation is 15th July, you can not hold the salary for that month till final settlement which may take place in August 15th or later than that. This is true at least in the case of employees not in the managerial cadre.
At the same time, most of the companies have an F&F policy whereby the employee who has put his papers will not receive his month's salary in time but only at the time of F&F. Nobody questions it because they are much concerned about the service certificate and some times due to ignorance. Therefore, you may also go ahead with your own policy but do not say that it will be legally fit.
Regards,
Madhu.T.K
From India, Kannur
At the same time, most of the companies have an F&F policy whereby the employee who has put his papers will not receive his month's salary in time but only at the time of F&F. Nobody questions it because they are much concerned about the service certificate and some times due to ignorance. Therefore, you may also go ahead with your own policy but do not say that it will be legally fit.
Regards,
Madhu.T.K
From India, Kannur
Dear Bhandavi
As per payment of the Wages Act you cannot hold the salary of the employee for more than 7 day ( if the strength is 100 but less than 1000) and 10 days (if the employee strength is more than 1000).
But as far as full and final settlement, you can make settlement deducting the notice period days if he has not served as per your appointment order.
Normally why do you wait till such time, calculate and settle the amount at the earliest.
Regards
V.SRI
From India, Madras
As per payment of the Wages Act you cannot hold the salary of the employee for more than 7 day ( if the strength is 100 but less than 1000) and 10 days (if the employee strength is more than 1000).
But as far as full and final settlement, you can make settlement deducting the notice period days if he has not served as per your appointment order.
Normally why do you wait till such time, calculate and settle the amount at the earliest.
Regards
V.SRI
From India, Madras
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