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A person designated as Deputy Manager joined in January 2007 on probation. He completed his 6-month probation and was issued a confirmation letter. He has resigned from his services effective 6th October 2007.
Now, I have some questions:
1) Should he be entitled to leave encashment in his full and final account, such as CL/SL?
2) Is he entitled to a bonus?
3) If so, how much – for example, 8.33% or the declared amount?
4) Since he did not serve the notice period, do I have the right to deduct one month's salary from his leave or bonus payment?
I need guidance on preparing his full and final settlement. Thank you.
Prashant More
DuFlon Polymers Pvt. Ltd
From India
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24A person designated as Deputy Manager joined in January 2007 on probation. He completed his 6-month probation and was issued a confirmation letter. He has resigned from his services effective 6th October 2007.
Now, I have some questions:
1) Should he be entitled to leave encashment in his full and final account, such as CL/SL?
2) Is he entitled to a bonus?
3) If so, how much – for example, 8.33% or the declared amount?
4) Since he did not serve the notice period, do I have the right to deduct one month's salary from his leave or bonus payment?
I need guidance on preparing his full and final settlement. Thank you.
Prashant More
DuFlon Polymers Pvt. Ltd
From India
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Dear Prashant,
1. Since he has been confirmed, I think leave encashment must be given.
2. As he has completed more than 30 days in the company, he will be eligible for a bonus.
3. I am not sure about the third question. Sorry for that.
4. As he has been confirmed, you can deduct the notice period from his final settlement, as per the terms of his appointment/confirmation.
Regards,
Sunil
From India, Bangalore
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1. Since he has been confirmed, I think leave encashment must be given.
2. As he has completed more than 30 days in the company, he will be eligible for a bonus.
3. I am not sure about the third question. Sorry for that.
4. As he has been confirmed, you can deduct the notice period from his final settlement, as per the terms of his appointment/confirmation.
Regards,
Sunil
From India, Bangalore
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Hi Prashant,
If you have issued a confirmation letter to any employee, automatically, he will be entitled to CL/SL and EL as well. If any employee who is confirmed works for more than 30 days, he is entitled to a bonus, whether it's 8.33% or 20%, or whatever your declared limit is. This depends upon the policy of your company.
If you have mentioned this requirement, I mean completion of the notice period; otherwise, the company will deduct one month's salary. Then you have the right to deduct his salary from his full and final account if he has not served his notice period.
If you need anything else, do tell me.
Thanks,
Sushma
From China, Beijing
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If you have issued a confirmation letter to any employee, automatically, he will be entitled to CL/SL and EL as well. If any employee who is confirmed works for more than 30 days, he is entitled to a bonus, whether it's 8.33% or 20%, or whatever your declared limit is. This depends upon the policy of your company.
If you have mentioned this requirement, I mean completion of the notice period; otherwise, the company will deduct one month's salary. Then you have the right to deduct his salary from his full and final account if he has not served his notice period.
If you need anything else, do tell me.
Thanks,
Sushma
From China, Beijing
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Hi Prashanth, Answer for 3rd Q? You have to give him the declared one as he has got the confirmation letter. Regards Pandian
From India, Bangalore
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From India, Bangalore
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Hi Sushma,
Thank you for your reply.
Regarding my third question, at the time of his appointment, we had given him the total package inclusive of a 20% bonus for the period of 2006-07. Now, for the year 2007-08, do I have to give him a 20% bonus or can I provide the standard 8.33%? Which is applicable for him?
Thank you,
Prashant
From India
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Thank you for your reply.
Regarding my third question, at the time of his appointment, we had given him the total package inclusive of a 20% bonus for the period of 2006-07. Now, for the year 2007-08, do I have to give him a 20% bonus or can I provide the standard 8.33%? Which is applicable for him?
Thank you,
Prashant
From India
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Response to your queries:
1) Whether he should be entitled to leave encashment in Full & final account, e.g., CL/SL?
Ans: CL or SL is not supposed to be encashed. Only earned leave is to be encashed. If he has any, it has to be encashed.
2) Whether he should be entitled to a Bonus?
Ans: It depends on his salary. If his Basic & DA salary is less than 3500, he will be paid the bonus; if not, he is not eligible for a Bonus.
3) If yes, then how much, I mean 8.33% or the declared one?
Ans: NA
4) He has not served the notice period. Do I have the right to deduct the 1-month salary from leave or bonus payment?
Ans: Since his job is not confirmed, he can leave the job with a day's notice. No deduction is to be made. Check his Appointment Letter for this clause.
Bibek Banerjee
From India, Calcutta
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1) Whether he should be entitled to leave encashment in Full & final account, e.g., CL/SL?
Ans: CL or SL is not supposed to be encashed. Only earned leave is to be encashed. If he has any, it has to be encashed.
2) Whether he should be entitled to a Bonus?
Ans: It depends on his salary. If his Basic & DA salary is less than 3500, he will be paid the bonus; if not, he is not eligible for a Bonus.
3) If yes, then how much, I mean 8.33% or the declared one?
Ans: NA
4) He has not served the notice period. Do I have the right to deduct the 1-month salary from leave or bonus payment?
Ans: Since his job is not confirmed, he can leave the job with a day's notice. No deduction is to be made. Check his Appointment Letter for this clause.
Bibek Banerjee
From India, Calcutta
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Hi Prashant,
Good morning.
If you have mentioned his CTC including a 20% bonus or if you have specified his 20% bonus in the appointment letter, then you'll have to give him 20%.
Here, I want to inform you about the policy of my company. We provide a 20% bonus to all our employees during Diwali. However, if any employee leaves the company, we only offer him/her 8.33% in their full and final settlement as per the instruction of the Managing Director. This instruction comes directly from the MD, so we must adhere to it.
Thank you,
Sushma
From China, Beijing
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Good morning.
If you have mentioned his CTC including a 20% bonus or if you have specified his 20% bonus in the appointment letter, then you'll have to give him 20%.
Here, I want to inform you about the policy of my company. We provide a 20% bonus to all our employees during Diwali. However, if any employee leaves the company, we only offer him/her 8.33% in their full and final settlement as per the instruction of the Managing Director. This instruction comes directly from the MD, so we must adhere to it.
Thank you,
Sushma
From China, Beijing
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Dear All,
How can an employee become eligible for Earned Leave (EL) without completing one year of service in a company? If the employee is confirmed, should we require him to serve a one-month notice period, or do we deduct the equivalent amount from his final settlement?
Regards,
V. Arunkumar.
From India, Madras
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How can an employee become eligible for Earned Leave (EL) without completing one year of service in a company? If the employee is confirmed, should we require him to serve a one-month notice period, or do we deduct the equivalent amount from his final settlement?
Regards,
V. Arunkumar.
From India, Madras
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Hi Arun U r right if an employees does not serve the organisation for 240 days he will not be eligible for EL. Sushma
From China, Beijing
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From China, Beijing
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Hi,
With respect to your queries:
1) Whether he should be entitled to leave encashment in Full & Final account, e.g., CL/SL? Since he is confirmed, he is entitled to the same.
2) Whether he should be entitled to a bonus? He is entitled to the bonus mentioned in the appointment letter.
3) If yes, then how much, I mean 8.33% or the declared one? Declared one.
4) He has not served the notice period. Do I have the right to deduct the 1-month salary from the leave or bonus payment? Yes, you should deduct the notice period amount.
Hope this helps you.
Regards, Karuuna 9833471989
From India, Mumbai
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With respect to your queries:
1) Whether he should be entitled to leave encashment in Full & Final account, e.g., CL/SL? Since he is confirmed, he is entitled to the same.
2) Whether he should be entitled to a bonus? He is entitled to the bonus mentioned in the appointment letter.
3) If yes, then how much, I mean 8.33% or the declared one? Declared one.
4) He has not served the notice period. Do I have the right to deduct the 1-month salary from the leave or bonus payment? Yes, you should deduct the notice period amount.
Hope this helps you.
Regards, Karuuna 9833471989
From India, Mumbai
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