Dear Seniors,
what if someone doesn't turn up to collect the final dues or F&F within time and start asking for final dues after almost about one year...is company liable to pay or can deny....
is there any govt. rule in this regard...pls let me know.
Thanks!
Saunee
From India, New Delhi
12what if someone doesn't turn up to collect the final dues or F&F within time and start asking for final dues after almost about one year...is company liable to pay or can deny....
is there any govt. rule in this regard...pls let me know.
Thanks!
Saunee
From India, New Delhi
Hi Saunee
You may define a stipulated period to handle F&F cases to ease your administration and reportings. However, you are liable to pay F&F to all ex-employees.
You need to work in tandem with Finance policy. All pending payable and payout cases are booked in financial reports which is signed off every year by CFO or as per your company rules. These are also subject to internal and external audit reportings.
You as HR is equally responsible to keep record, track and dispose as per company policy as well as compliance.
To avoid administration hassle and set positive example you may take explanation in writing from such ex-employees. This will help people to treat the process with respect.
Please check if his/her record exists in HR and Finance record as to be paid before you commit to the ex-employee to avoid internal issues.
Hope you are clear now.
Best wishes
Runa
From India, Mumbai
You may define a stipulated period to handle F&F cases to ease your administration and reportings. However, you are liable to pay F&F to all ex-employees.
You need to work in tandem with Finance policy. All pending payable and payout cases are booked in financial reports which is signed off every year by CFO or as per your company rules. These are also subject to internal and external audit reportings.
You as HR is equally responsible to keep record, track and dispose as per company policy as well as compliance.
To avoid administration hassle and set positive example you may take explanation in writing from such ex-employees. This will help people to treat the process with respect.
Please check if his/her record exists in HR and Finance record as to be paid before you commit to the ex-employee to avoid internal issues.
Hope you are clear now.
Best wishes
Runa
From India, Mumbai
Have you informed the employee that his F&F were settled and called up on him to collect it within a stipulated time. The employer cannot wait for the employee to enquire about his F&F and come and collect. For example the Gartuity Act requires the employer to pay gartuity within 30 days of it becoming payable.You cannot deny him his legal dues.They are his property in the hands of the comapny but not a bounty to be given to him as per the whim of the company. For all the delay, probabably the money attrcats interest also. The delay is fraught with such finacial implications..
B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
B.Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
Dear Sai,
Thanks for information. but its not about the delay from employer side, it is from employee side who was informed to collect his dues but didnt turn up. his cheque got expired after six months. now almost after one year he called up for dues. off course his dues will be paid but my qs was if there is any policy or practice being followed by companies to handle such things or any time limit being put by companies to collect the dues within.
Please answer...
From India, New Delhi
Thanks for information. but its not about the delay from employer side, it is from employee side who was informed to collect his dues but didnt turn up. his cheque got expired after six months. now almost after one year he called up for dues. off course his dues will be paid but my qs was if there is any policy or practice being followed by companies to handle such things or any time limit being put by companies to collect the dues within.
Please answer...
From India, New Delhi
Dear Saunee,
Even after reminding the employee to collect the dues, if the employee is not getting the dues within 1 year the same amount cannot be retained by the company and the same should be paid to the respective state labour welfare board at the end of the year.
All unpaid accumulation/ dues from the employer to employee has to paid to Labour welfare fund board.
So make the proof sent to the employee intimating that he should collect his dues mentioning the date. Send all the letter through registered post. Still the employee don't come you can pay the same to Labour welfare fund board.
Even when the employee comes in future to ask or go legally you can provide the documents properly.
From India, Mumbai
Even after reminding the employee to collect the dues, if the employee is not getting the dues within 1 year the same amount cannot be retained by the company and the same should be paid to the respective state labour welfare board at the end of the year.
All unpaid accumulation/ dues from the employer to employee has to paid to Labour welfare fund board.
So make the proof sent to the employee intimating that he should collect his dues mentioning the date. Send all the letter through registered post. Still the employee don't come you can pay the same to Labour welfare fund board.
Even when the employee comes in future to ask or go legally you can provide the documents properly.
From India, Mumbai
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