There is a case here in my company in which the employee joined in Sep-2006. She worked until Feb-2012. After that, she sent us an email stating that she was pregnant and her due date was in September 2012. She then requested leave until the following March. Subsequently, she continued to request leave extensions until her delivery. Even after her delivery, she did not return to work until December 2012. She then sent another email stating that she would not be able to come back until January 2013 and requested further leave extension. In response, we sent her a letter asking her to return to work in December 2012, but she resigned instead.
Now, when calculating her Full & Final settlement, should the number of years considered for Gratuity be until her last day worked, i.e., till Feb '12, or until her delivery date, i.e., Sep '12, as we have already paid her the maternity benefits, or until the date she resigned, i.e., Dec 2012?
Please help to clarify the above query.
Thanks & Regards,
Rucha
From India, Ahmadabad
Now, when calculating her Full & Final settlement, should the number of years considered for Gratuity be until her last day worked, i.e., till Feb '12, or until her delivery date, i.e., Sep '12, as we have already paid her the maternity benefits, or until the date she resigned, i.e., Dec 2012?
Please help to clarify the above query.
Thanks & Regards,
Rucha
From India, Ahmadabad
How long is the maternity leave in your organization? Was this almost a year's paid leave?
Are you aware that as per the Maternity Act, a female is entitled to 12 weeks (3 months) of paid leave?
Regarding your query, if you have already paid her all her maternity benefits, that's good.
I am unsure about what would be settled in the Full & Final settlement as there are no salary claims on her part. I hope you have not contributed to her PF account, as there is no contribution to the PF account from either side during maternity leave.
For gratuity, her tenure should be considered from her Date of Joining (DoJ) until her Last Working Day (LWD).
I believe senior management should also be involved in addressing this issue to discourage females from resigning after availing maternity benefits.
While resignations on medical grounds are understandable, there are cases where individuals take advantage of maternity benefits.
I am sorry to state this. I am a female myself, but I do not appreciate situations where individuals exploit benefits meant for their own advantage. Such instances make companies hesitant to hire married women who have not yet started a family, and genuine cases are unfortunately overlooked.
From India, Mumbai
Are you aware that as per the Maternity Act, a female is entitled to 12 weeks (3 months) of paid leave?
Regarding your query, if you have already paid her all her maternity benefits, that's good.
I am unsure about what would be settled in the Full & Final settlement as there are no salary claims on her part. I hope you have not contributed to her PF account, as there is no contribution to the PF account from either side during maternity leave.
For gratuity, her tenure should be considered from her Date of Joining (DoJ) until her Last Working Day (LWD).
I believe senior management should also be involved in addressing this issue to discourage females from resigning after availing maternity benefits.
While resignations on medical grounds are understandable, there are cases where individuals take advantage of maternity benefits.
I am sorry to state this. I am a female myself, but I do not appreciate situations where individuals exploit benefits meant for their own advantage. Such instances make companies hesitant to hire married women who have not yet started a family, and genuine cases are unfortunately overlooked.
From India, Mumbai
Dear Ms. Ankita (married or unmarried?),
I'm very sorry for your concluding remarks on gender. You never know under what circumstances she has to resign. You have seen many millions just like that go absconding without a trace, and you are so angry at this young mother, why? After all, employees come and go for many reasons, and how inhumane it is to solely blame all mothers en masse; it's unfair. You can't ignore the millions of women who postpone their pregnancy just for the sake of their jobs. What I would have suggested is to talk to her compassionately, understand her difficulties, and if possible, offer help or decide accordingly. How can you be so upset about it?
Regarding your query, as others have mentioned, first settle and regularize the procedures according to your policy or applicable rules, and then declare her last working day. Only then will everything be clear to you. Keeping everything open without closure leads to uncertainties.
Long live motherhood, including Ankita.
Kumar S.
From India, Bangalore
I'm very sorry for your concluding remarks on gender. You never know under what circumstances she has to resign. You have seen many millions just like that go absconding without a trace, and you are so angry at this young mother, why? After all, employees come and go for many reasons, and how inhumane it is to solely blame all mothers en masse; it's unfair. You can't ignore the millions of women who postpone their pregnancy just for the sake of their jobs. What I would have suggested is to talk to her compassionately, understand her difficulties, and if possible, offer help or decide accordingly. How can you be so upset about it?
Regarding your query, as others have mentioned, first settle and regularize the procedures according to your policy or applicable rules, and then declare her last working day. Only then will everything be clear to you. Keeping everything open without closure leads to uncertainties.
Long live motherhood, including Ankita.
Kumar S.
From India, Bangalore
Dear Friend,
For the purpose of Gratuity coverage, which is based on 5 years of continuous service, the period to be calculated would be from the date of joining until the date of separation. In this case, since she was on the company's payroll until Dec '12, i.e., the date of her submitting the resignation, Gratuity would be considered only until Dec '12. When considering Gratuity coverage, it is the tenure on the company's payroll that is taken into consideration, not just attendance.
Regards,
B.K. Mohanty
Advisor and Senior Consultant
Bhubaneswar
9937822563
From India, Bhubaneswar
For the purpose of Gratuity coverage, which is based on 5 years of continuous service, the period to be calculated would be from the date of joining until the date of separation. In this case, since she was on the company's payroll until Dec '12, i.e., the date of her submitting the resignation, Gratuity would be considered only until Dec '12. When considering Gratuity coverage, it is the tenure on the company's payroll that is taken into consideration, not just attendance.
Regards,
B.K. Mohanty
Advisor and Senior Consultant
Bhubaneswar
9937822563
From India, Bhubaneswar
Sir with regards to your advice, I have foll query:
In this article, pg no 3 salary is define as to what is included and what is not.
It defines as follows:
“wages” means all remuneration paid or payable in cash to a woman, if the terms
of the contract of employment, express or implied, were fulfilled and includes –
but does not include –
If you could help me solve the query as what you said and what is given in the article is i feel contradictory. Please guide me.
From India, Mumbai
In this article, pg no 3 salary is define as to what is included and what is not.
It defines as follows:
“wages” means all remuneration paid or payable in cash to a woman, if the terms
of the contract of employment, express or implied, were fulfilled and includes –
- such cash allowances (including dearness allowance and house rent
- allowance) as a woman is for the time being entitled to;
- incentive bonus; and
- the money value of the concessional supply of foodgrains and other
- articles,
but does not include –
- any bonus other than incentive bonus;
- overtime earnings and any deduction or payment made on account of
- fines;
- any contribution paid or payable by the employer to any pension fund
- or provident fund or for the benefit of the woman under any law for
- the time being in force; and
- any gratuity payable on the termination of service;
If you could help me solve the query as what you said and what is given in the article is i feel contradictory. Please guide me.
From India, Mumbai
Regarding Gratuity -
Dear friends,
There is a question: if an employee requests to be paid gratuity after completing 5 years of service but is not resigning or retiring from the job, can we pay him gratuity?
From India, Shimla
Dear friends,
There is a question: if an employee requests to be paid gratuity after completing 5 years of service but is not resigning or retiring from the job, can we pay him gratuity?
From India, Shimla
Dear Friend,
The issue in question was on Gratuity coverage only, to which I have suggested as mentioned in my earlier note. What you have referred to was wage coverage only. Moreover, gratuity legally may not be paid if the separation is due to termination by the company, and in all other cases, gratuity is payable.
Regards,
Bk Mohanty
From India, Bhubaneswar
The issue in question was on Gratuity coverage only, to which I have suggested as mentioned in my earlier note. What you have referred to was wage coverage only. Moreover, gratuity legally may not be paid if the separation is due to termination by the company, and in all other cases, gratuity is payable.
Regards,
Bk Mohanty
From India, Bhubaneswar
NO. Gratuity is not paid in between the service which is only settled at the time of separation regards bk mohanty
From India, Bhubaneswar
From India, Bhubaneswar
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