Hi, I have a query regarding the full and final settlement. I was working in a company, and after completing 5 months, I resigned with a proper handover. I submitted my resignation on Saturday, and during that week, I worked for 5 days. Am I eligible to take a weekly off with pay? Also, am I eligible to encash earned leave while I was on probation?
From India, Faridabad
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From India, Faridabad
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Resignation normally becomes effective only from the actual date of formal relief after its acceptance by the employer. Thus, from that particular date of formal relief from the organization, the contract of employment ceases to exist. Therefore, an ex-employee cannot claim any weekly off falling after the date of his formal relief from the employment.
Though there is no mention in the post about the type of establishment, normally the accrual of E.L. becomes effective only after the completion of one year or 240 days of continuous service in the establishment. Since the poster seems to have completed only 5 months of service prior to his resignation, he is not eligible to claim the surrender value of his E.L.
From India, Salem
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6185Though there is no mention in the post about the type of establishment, normally the accrual of E.L. becomes effective only after the completion of one year or 240 days of continuous service in the establishment. Since the poster seems to have completed only 5 months of service prior to his resignation, he is not eligible to claim the surrender value of his E.L.
From India, Salem
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Resignation becomes effective from the last working date and its acceptance by the employer. Thus, after the last working date of formal relief from the organization, the contract of employment ceases.
Therefore, an ex-employee cannot claim any weekly off falling after the last working date of his formal relief from the employment.
From India, Bengaluru
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Therefore, an ex-employee cannot claim any weekly off falling after the last working date of his formal relief from the employment.
From India, Bengaluru
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Hi,
The establishment deals in the manufacturing of LED TV packing thermocol. 240 days is the entitlement of E.L. If an employee joins in the month of July, then how can he complete his 240 days in that year? E.L. is the earning of an employee on 20 working days. In full and final settlement, the encashment of earned leave should be on a pro rata basis.
From India, Faridabad
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The establishment deals in the manufacturing of LED TV packing thermocol. 240 days is the entitlement of E.L. If an employee joins in the month of July, then how can he complete his 240 days in that year? E.L. is the earning of an employee on 20 working days. In full and final settlement, the encashment of earned leave should be on a pro rata basis.
From India, Faridabad
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Dear Dinesh, The reason for insisting on the questioner to furnish all particulars relevant to any query in a single go is this only. Anyway, I would request you to check with section 79(2) of the Factories Act, 1948 and arrive at the answer on your own.
From India, Salem
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From India, Salem
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Hi Sir,
Thank you for your valuable inputs.
I have one more query regarding the payment of bonuses. Employees earning wages up to $21,000 per month or less are eligible for a bonus. The amount of $21,000 is the gross salary or basic salary + DA?
With regards,
Dinesh
From India, Faridabad
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Thank you for your valuable inputs.
I have one more query regarding the payment of bonuses. Employees earning wages up to $21,000 per month or less are eligible for a bonus. The amount of $21,000 is the gross salary or basic salary + DA?
With regards,
Dinesh
From India, Faridabad
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Dear Dinesh,
In my opinion, the gross salary is to be taken for the purpose of an employee's eligibility to claim any monetary employment benefit prescribed under any law applicable to the establishment where he is employed. Some others may hold a contrary view sticking to the definition of the term "salary or wages" so defined in the particular enactment conferring such benefit.
The logical reasoning that I can give in support of my view is this: The term "wage" or "salary" would indicate the overall compensation paid by the employer at the end of a wage period in consideration of the services rendered by the employee. Therefore, it has to be taken as a single package only as there is no uniformity in the definitions of the term under various enactments. The definition part of any Law would begin with a general phrase - "In this Act, unless the context otherwise requires -". It implies that the definitions have to be read with the purpose of the particular legislation only.
When it is a monetary legislation like the Payment of Bonus Act, the purpose of the Act is to grant a bonus to employees with reference to the performance of the establishment in an accounting year based on the wages earned by them. Hence the definition of "wages" has to be adopted and applied for the purpose of the calculation of the bonus only and not for determining the applicability of the Act.
From India, Salem
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In my opinion, the gross salary is to be taken for the purpose of an employee's eligibility to claim any monetary employment benefit prescribed under any law applicable to the establishment where he is employed. Some others may hold a contrary view sticking to the definition of the term "salary or wages" so defined in the particular enactment conferring such benefit.
The logical reasoning that I can give in support of my view is this: The term "wage" or "salary" would indicate the overall compensation paid by the employer at the end of a wage period in consideration of the services rendered by the employee. Therefore, it has to be taken as a single package only as there is no uniformity in the definitions of the term under various enactments. The definition part of any Law would begin with a general phrase - "In this Act, unless the context otherwise requires -". It implies that the definitions have to be read with the purpose of the particular legislation only.
When it is a monetary legislation like the Payment of Bonus Act, the purpose of the Act is to grant a bonus to employees with reference to the performance of the establishment in an accounting year based on the wages earned by them. Hence the definition of "wages" has to be adopted and applied for the purpose of the calculation of the bonus only and not for determining the applicability of the Act.
From India, Salem
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