I have a question. If an employee has resigned from the company and has requested an early exit. The employee doesn't serve the whole notice period of 90 days after the resignation and only serves 60 days notice period. What will be the recovery and will he be eligible for a gratuity. The employee has served the organization for 8 years.
From India, Ahmednagar
From India, Ahmednagar
625
As per service condition Notice Period is 90 days but the employee has served for 60 days. Therefore, there is a shortfall of 30 days. In most of the organizations in case of shortfall of notice period, the employee is required to pay the amount to employer equivalent to 30 days. The employee may check from the organization.
So far gratuity is concerned , as the employee has been worked for 8 years, he/she is entitled for the gratuity and organization has to pay it.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
So far gratuity is concerned , as the employee has been worked for 8 years, he/she is entitled for the gratuity and organization has to pay it.
S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
There are two issues as I could see
1. Short Notice Period: Generally in such cases shortfall in the number of days for Notice Period is adjusted from the Full & Final Settlement Amount to be paid to the employee unless there is something contrary in the Terms & Conditions of the Appointment.
2. Gratuity Payment: Company can not hold Gratuity payment on account of shortfall in Notice Period neither they can adjust any amount from the same. Rest assured that Company will have to pay full Gratuity amount within 30 days from the separation day.
Thanks
Aditya
From India, New Delhi
1. Short Notice Period: Generally in such cases shortfall in the number of days for Notice Period is adjusted from the Full & Final Settlement Amount to be paid to the employee unless there is something contrary in the Terms & Conditions of the Appointment.
2. Gratuity Payment: Company can not hold Gratuity payment on account of shortfall in Notice Period neither they can adjust any amount from the same. Rest assured that Company will have to pay full Gratuity amount within 30 days from the separation day.
Thanks
Aditya
From India, New Delhi
Whether an employee serves the entire notice period or only part thereof or even buys it out fully or in part, the qualifying period of service for the purpose of statutory gratuity has to be reckoned from the date of entry till the date of actual leaving.
From India, Salem
From India, Salem
Under no circumstances can the employer make deductions or withhold the amount payable to the employee in terms of his gratuity amount apart from the three conditions mentioned in Section 4(6) of the said act."
Section 4(6) of the 1972 Act lays down three circumstances in which the payment of gratuity may be withheld:
1. The service of an employee is terminated for willful omission or negligence on the part of the employee causing loss or damage or destruction of the property belonging to the company;
2. Service of the employee is terminated for riotous or disorderly conduct or any other act of
3. Violence;. termination of service due to an offence involving moral turpitude committed in course of this employment.
From India, Madras
Section 4(6) of the 1972 Act lays down three circumstances in which the payment of gratuity may be withheld:
1. The service of an employee is terminated for willful omission or negligence on the part of the employee causing loss or damage or destruction of the property belonging to the company;
2. Service of the employee is terminated for riotous or disorderly conduct or any other act of
3. Violence;. termination of service due to an offence involving moral turpitude committed in course of this employment.
From India, Madras
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Notice of Employee Change.doc
Five Ways To..Serve Your Notice Period Responsibly.pdf