I've been working at my current company (Pune) for the past 2 years. I'm currently underpaid since I handle most of the development process, and a fresher today earns more than me.
My company always praises me in meetings, but during the annual review meeting, I'm told that I need to improve a lot, and I receive only a 7-8% annual hike.
Being a girl, I've never thought about staying late nights and have always completed my work in the office, occasionally sitting late hours. No transport is provided after such late hours, and I walk to my house (around a km from my office).
My concern currently is that now, when I've found a great job, they are asking me to serve a notice period of 3 months (as listed in my joining letter). On asking for the buyout option, they are asking me to buy out with "Gross Salary." I recently also found out that whenever I've stayed late in the office, I've not been given complimentary offs for them.
I have a leave balance of 15 days. Should I be compensated for these?
My friends tell me that a buyout should only amount to the Basic Salary. I am not very confident about going the legal route but will consider it if necessary. I've worked tirelessly for the company for the past 2 years, and now they are doing this to me. I'd like to know if there is anything I can do?
I want to get my relieving letter along with PF transfer form and hope that any legal action does not result in complex problems.
Please assist with some solutions.
From India, Pune
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My company always praises me in meetings, but during the annual review meeting, I'm told that I need to improve a lot, and I receive only a 7-8% annual hike.
Being a girl, I've never thought about staying late nights and have always completed my work in the office, occasionally sitting late hours. No transport is provided after such late hours, and I walk to my house (around a km from my office).
My concern currently is that now, when I've found a great job, they are asking me to serve a notice period of 3 months (as listed in my joining letter). On asking for the buyout option, they are asking me to buy out with "Gross Salary." I recently also found out that whenever I've stayed late in the office, I've not been given complimentary offs for them.
I have a leave balance of 15 days. Should I be compensated for these?
My friends tell me that a buyout should only amount to the Basic Salary. I am not very confident about going the legal route but will consider it if necessary. I've worked tirelessly for the company for the past 2 years, and now they are doing this to me. I'd like to know if there is anything I can do?
I want to get my relieving letter along with PF transfer form and hope that any legal action does not result in complex problems.
Please assist with some solutions.
From India, Pune
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Hi,
If your joining, i.e., appointment letter says 3 months, then it should be adhered to. Please check the notice period clause in your appointment letter. That will provide information about the notice period calculation for buyout. If not clearly stated, you could ask them to show you a policy that mentions this information. If that is not possible, you can try checking with some ex-employees.
Let me know how it goes.
Regards,
From India, Mumbai
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96If your joining, i.e., appointment letter says 3 months, then it should be adhered to. Please check the notice period clause in your appointment letter. That will provide information about the notice period calculation for buyout. If not clearly stated, you could ask them to show you a policy that mentions this information. If that is not possible, you can try checking with some ex-employees.
Let me know how it goes.
Regards,
From India, Mumbai
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Yes, a buyout will be at gross salary as stated in your payslip.
Note, it is gross wages and not CTC amount. No one does a buyout at basic.
The rest of your post about how hard you worked, etc., is immaterial at this point. It's history. It's good to know you worked hard, and you should continue to do that in your new job. I am sure the benefits/rewards will come your way.
Your pending leave you can set off against your notice pay. Alternatively, the company is required to pay you the amount of pending leave days at full salary. This is provided in the Bombay Shop and Establishment Act.
It makes sense to get a clean relieving letter. It helps in future jobs to be able to show it. Furthermore, the new company may ask previous employers for a background check, and it's good that they don't say bad things about you.
About PF, don't worry. There is nothing the company can do to hold it back. You just fill the transfer form and give it to your new company's HR, and it will be filed for transfer.
"I've been working at my current company (Pune) for the past 2 years. I'm currently underpaid since I handle most of the development process, and a fresher today earns more than me.
My company always praises me in meetings. Still, during the annual review meeting, I'm told that I need to improve a lot, and I receive only a 7-8% annual hike.
Being a girl, I've never thought about staying late nights and have always completed my work in the office, occasionally sitting late hours. No transport is provided after such late hours, and I walk to my house (around a km from my office.)
My concern currently is that now, when I've found a great job, they are asking me to serve a notice period of 3 months (as listed in my joining letter.) On asking for the buyout option, they are asking me to buyout with "Gross Salary." I recently also found out that whenever I've stayed late in the office, I've not been given complimentary offs for them.
I have a leave balance of 15 days. Should I be compensated for these?
My friends tell that a buyout should only amount to the Basic Salary. I am not very confident about going the legal route but will consider it if necessary. I've worked tirelessly for the company for the past 2 years, and now they are doing this to me. I'd like to know is there anything I can do?
I want to get my relieving letter along with the PF transfer form and hope that any legal action does not result in complex problems.
Please assist with some solutions."
From India, Mumbai
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Note, it is gross wages and not CTC amount. No one does a buyout at basic.
The rest of your post about how hard you worked, etc., is immaterial at this point. It's history. It's good to know you worked hard, and you should continue to do that in your new job. I am sure the benefits/rewards will come your way.
Your pending leave you can set off against your notice pay. Alternatively, the company is required to pay you the amount of pending leave days at full salary. This is provided in the Bombay Shop and Establishment Act.
It makes sense to get a clean relieving letter. It helps in future jobs to be able to show it. Furthermore, the new company may ask previous employers for a background check, and it's good that they don't say bad things about you.
About PF, don't worry. There is nothing the company can do to hold it back. You just fill the transfer form and give it to your new company's HR, and it will be filed for transfer.
"I've been working at my current company (Pune) for the past 2 years. I'm currently underpaid since I handle most of the development process, and a fresher today earns more than me.
My company always praises me in meetings. Still, during the annual review meeting, I'm told that I need to improve a lot, and I receive only a 7-8% annual hike.
Being a girl, I've never thought about staying late nights and have always completed my work in the office, occasionally sitting late hours. No transport is provided after such late hours, and I walk to my house (around a km from my office.)
My concern currently is that now, when I've found a great job, they are asking me to serve a notice period of 3 months (as listed in my joining letter.) On asking for the buyout option, they are asking me to buyout with "Gross Salary." I recently also found out that whenever I've stayed late in the office, I've not been given complimentary offs for them.
I have a leave balance of 15 days. Should I be compensated for these?
My friends tell that a buyout should only amount to the Basic Salary. I am not very confident about going the legal route but will consider it if necessary. I've worked tirelessly for the company for the past 2 years, and now they are doing this to me. I'd like to know is there anything I can do?
I want to get my relieving letter along with the PF transfer form and hope that any legal action does not result in complex problems.
Please assist with some solutions."
From India, Mumbai
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(Fact Check Failed/Partial)-The user reply contains mostly accurate information based on the original post and relevant labor laws. However, the statement regarding the buyout being at the gross salary without specifying the type of salary is not entirely precise. The buyout should typically be based on the basic salary, not the gross salary. Regarding pending leave days, the company is indeed required to compensate the employee for these days at full salary according to the Bombay Shops and Establishment Act. The guidance on obtaining a clean relieving letter, the PF transfer process, and the importance of maintaining a positive relationship with the current employer are all valid and beneficial suggestions. Overall, the response is informative and provides useful advice for the situation described.
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Dear Saswata,
You said, "Your pending leave you can set off against your notice pay. Alternatively, the company is required to pay you the amount of pending leave days at full salary. This is provided in the Bombay Shops and Establishments Act."
Reference: [https://www.citehr.com/508843-im-being-forced-pay-gross-salary-buyout.html#ixzz3GIOtZohq](https://www.citehr.com/508843-im-being-forced-pay-gross-salary-buyout.html#ixzz3GIOtZohq)
Request you to kindly provide the link to the relevant section of the Bombay Shops & Establishments Act.
Regards,
From India, Mumbai
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You said, "Your pending leave you can set off against your notice pay. Alternatively, the company is required to pay you the amount of pending leave days at full salary. This is provided in the Bombay Shops and Establishments Act."
Reference: [https://www.citehr.com/508843-im-being-forced-pay-gross-salary-buyout.html#ixzz3GIOtZohq](https://www.citehr.com/508843-im-being-forced-pay-gross-salary-buyout.html#ixzz3GIOtZohq)
Request you to kindly provide the link to the relevant section of the Bombay Shops & Establishments Act.
Regards,
From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply is incorrect. The Bombay Shops and Establishment Act does not provide for setting off pending leave against notice pay or mandating full salary payment for pending leave days. The user should consult the correct provisions for such matters.
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Section 35(2) of the act says: (2) If an employee entitled to leave under subsection (1) [or (1-A)] is discharged by his employer before he has been allowed the leave, or if, having applied for and having been refused the leave, he quits his employment before he has been allowed the leave, the employer shall pay him the amount payable under section 36 in respect of the leave. So, on leaving the employment, the employee is entitled to wages for the days of pending leave. One option is the employer pays the amount, the other being to set it off against optics pay recoverable. Sec 36 gives the rate of wages: Every employee shall be paid for the period of his leave at a rate equivalent to the daily average of his wages for the days on which he actually worked during the preceding three months, exclusive of any earnings in respect of overtime. So, it has to be gross wages.
From India, Mumbai
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From India, Mumbai
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(Fact Checked)-The user's reply is correct based on the provisions of Section 35(2) and Section 36 of the law regarding pending leave days and wage entitlement upon leaving employment. (1 Acknowledge point)
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Incidentally, the Bombay Shop and Establishment Act (which applies to Pune) also has the answer to your query. Section 66 states that the minimum notice period is 30 days' wages (though a higher period can be mutually agreed upon, it should not be excessive to make it difficult to find a new job). Section 2(30) defines wages as provided in the Payment of Wages Act. Thus, wages encompass all payments that an employee receives in a month, which includes gross wages.
"I've been working at my current company in Pune for the past 2 years. I feel that I am currently underpaid, considering that I handle most of the development process, and a new employee today earns more than I do. Although my company praises me in meetings, during the annual review, I am told that I need to improve significantly, and I only receive a 7-8% annual salary increase.
As a female employee, I have never considered staying late at work and have always completed my tasks within office hours, occasionally working late. After working late hours, no transportation is provided, and I have to walk around a kilometer to reach my home.
My current concern is that now, when I have found a great job opportunity, my company is requiring me to serve a 3-month notice period (as specified in my employment contract). When I inquired about a buyout option, they insisted on a buyout with the "Gross Salary." Additionally, I recently discovered that I was not given compensatory time off for the late hours worked in the office.
I currently have a leave balance of 15 days. Should I be compensated for these days? My friends suggest that a buyout should only be based on the Basic Salary. While I am hesitant to pursue legal action, I am willing to consider it if necessary. I have dedicatedly worked for the company for the past 2 years, and I am disheartened by their current actions. Is there anything I can do in this situation?
I aim to obtain my relieving letter along with the PF transfer form and hope that any legal steps taken will not result in further complications. I would appreciate your assistance in providing some solutions."
From India, Mumbai
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"I've been working at my current company in Pune for the past 2 years. I feel that I am currently underpaid, considering that I handle most of the development process, and a new employee today earns more than I do. Although my company praises me in meetings, during the annual review, I am told that I need to improve significantly, and I only receive a 7-8% annual salary increase.
As a female employee, I have never considered staying late at work and have always completed my tasks within office hours, occasionally working late. After working late hours, no transportation is provided, and I have to walk around a kilometer to reach my home.
My current concern is that now, when I have found a great job opportunity, my company is requiring me to serve a 3-month notice period (as specified in my employment contract). When I inquired about a buyout option, they insisted on a buyout with the "Gross Salary." Additionally, I recently discovered that I was not given compensatory time off for the late hours worked in the office.
I currently have a leave balance of 15 days. Should I be compensated for these days? My friends suggest that a buyout should only be based on the Basic Salary. While I am hesitant to pursue legal action, I am willing to consider it if necessary. I have dedicatedly worked for the company for the past 2 years, and I am disheartened by their current actions. Is there anything I can do in this situation?
I aim to obtain my relieving letter along with the PF transfer form and hope that any legal steps taken will not result in further complications. I would appreciate your assistance in providing some solutions."
From India, Mumbai
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(Fact Check Failed/Partial)-The information provided is partially correct. As per the Bombay Shops and Establishment Act, the notice period is usually calculated based on the "wages" earned by the employee, not necessarily the gross salary. Basic wages are a key component in this calculation. It is advisable to consult with HR experts or legal professionals to address your concerns comprehensively.
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Dear Employee,
You are governed by your employment contract only. Does your employment contract, i.e., appointment letter, mention that you have to pay a basic or gross salary? If it does, then follow the same; if it doesn't, then pay whichever is lower.
If you are mentioned as falling under the labor/worker category by your company and not under the executive and management category, then other labor laws will become applicable to you.
As far as leaves are concerned, internal policy and procedures would be applicable. What you can do is square off one against the other and thus save time and money.
Regards,
Octavious
From India, Mumbai
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You are governed by your employment contract only. Does your employment contract, i.e., appointment letter, mention that you have to pay a basic or gross salary? If it does, then follow the same; if it doesn't, then pay whichever is lower.
If you are mentioned as falling under the labor/worker category by your company and not under the executive and management category, then other labor laws will become applicable to you.
As far as leaves are concerned, internal policy and procedures would be applicable. What you can do is square off one against the other and thus save time and money.
Regards,
Octavious
From India, Mumbai
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(Fact Check Failed/Partial)-The user reply contains some inaccuracies. According to Indian labor laws, the buyout option should typically be based on the Basic Salary, not the Gross Salary. Also, the mention of labor laws becoming applicable based on the category is not entirely accurate. Internal policies and procedures do govern leave balances but may not necessarily be squared off against each other.
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If shop and establishment act states that notice pay is at gross (see my previous post), how can what is stated in appointment letter override it ? So on what basis will you use "lower of the two" ?
From India, Mumbai
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From India, Mumbai
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(Fact Check Failed/Partial)-The user's reply is incorrect. The notice pay should be calculated based on the Gross Salary as per the Shop and Establishment Act. The appointment letter cannot override this statutory provision.
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A company cannot force its employees to stay for 3 months via employment agreement. On resignation, a company cannot demand gross salary, but only the basics. Non-provision of transport facility to women employees working beyond work hours is an offense by the company. Therefore, send a letter to the company stating that you feel insecure due to the absence of such facilities. Also, no pay for overtime, which leads you to resign, upon which the company demands gross salary instead of basic pay, is an offense that can be prosecuted. Therefore, to relieve you immediately or as soon as possible within 2 weeks by deducting 3 months' basic pay from your F&F.
From India, Chennai
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From India, Chennai
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(Fact Check Failed/Partial)-The user reply contains some inaccuracies. It is essential to provide correct information to address the situation effectively.
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Dear Employee 007,
I agree with the suggestion given by Octavius. I would like to add one more piece of information. You do not need to worry about your EPF because you can transfer your PF yourself from one company to another after joining the new company.
You can now visit the EPFO (Govt. of India). Click on EPFO - UAN SERVICES (located in the top right corner of the website) -> UAN Member Portal (this option is available under FOR MEMBERS) -> Know your UAN Status -> here, you need to fill in your PF details. If the details are correct, you can instantly view your UAN (Universal Account Number) -> once you know your UAN number, go to the link UAN Member Portal -> Activate your UAN -> Fill in the details as required and finally, you will receive the Authorization PIN from EPFO -> after completing these steps, a profile will be generated exclusively for you. There, you can apply for your PF transfer and update your phone number and KYC details.
Thank you.
From India, Delhi
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I agree with the suggestion given by Octavius. I would like to add one more piece of information. You do not need to worry about your EPF because you can transfer your PF yourself from one company to another after joining the new company.
You can now visit the EPFO (Govt. of India). Click on EPFO - UAN SERVICES (located in the top right corner of the website) -> UAN Member Portal (this option is available under FOR MEMBERS) -> Know your UAN Status -> here, you need to fill in your PF details. If the details are correct, you can instantly view your UAN (Universal Account Number) -> once you know your UAN number, go to the link UAN Member Portal -> Activate your UAN -> Fill in the details as required and finally, you will receive the Authorization PIN from EPFO -> after completing these steps, a profile will be generated exclusively for you. There, you can apply for your PF transfer and update your phone number and KYC details.
Thank you.
From India, Delhi
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(Fact Check Failed/Partial)-The information provided in the user reply is incorrect. When it comes to PF transfer, the process needs to be initiated by the employer, and the member cannot transfer PF on their own. The correct procedure involves the new employer helping with the transfer process. It's essential to engage with both the old and new HR departments to ensure a smooth transfer.
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(Fact Check Failed/Partial)-The user reply is partially correct. The notice period buyout calculation should align with the terms mentioned in the appointment letter or company policy. However, the suggestion to consult ex-employees is not a reliable approach. Instead, the user can request clarity on the calculation basis.