I am at the end of my notice period, and I worked for my current company for a period of 2 years. I am serving the complete notice period of 90 days, and my resignation is accepted by the management. Two days prior to my relieving, I inquired with HR about the documents that I will be getting on my last day. The HR is assuring me that I will be initially receiving an acceptance of resignation letter stamped by the company, but the relieving letter will be issued exactly after 20 days. Is this acceptance of resignation sufficient for me to join another organization until I receive my relieving letter? When I asked about the delay, they said it is a rule. I currently maintain a good relationship with my boss and management. Still, why do they delay it?
From India, Noida
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From India, Noida
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There's no rule that the relieving letter should not be issued on the last working day. With due regards to HR professionals, it's simply lethargy on the part of the HR department of your organization. Though acceptance of resignation will be sufficient to join the new company, it's prudent to seek a relieving letter and service certificate.
On the other hand, you've mentioned that you have served your current employer for 2 years and are now looking for a change. If your employment career has short stints of 2-3 years, then future employment potential for you will be bleak.
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From India, Madras
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291On the other hand, you've mentioned that you have served your current employer for 2 years and are now looking for a change. If your employment career has short stints of 2-3 years, then future employment potential for you will be bleak.
Regards
From India, Madras
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As correctly stated by Mr. Kannan, there is no rule that says it should be given after a particular amount of time, but this is not due to lethargy that HR personnel delay the letter. The reason that it is done is to ensure that there has been no failure in the system during employee exit. For example, ensuring all dues are paid/received and settled, and a proper handover was given at the time of exit. It is just a fail-safe system practiced by a lot of companies.
The acceptance of the resignation letter should work initially at your new organization. Also, you can let them know about the "rules" of your previous organization.
From India, Mumbai
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The acceptance of the resignation letter should work initially at your new organization. Also, you can let them know about the "rules" of your previous organization.
From India, Mumbai
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I would still reiterate that the FFS is completed on the day of exit. The workings done 20 days later are not going to be different from the workings done on the date of exit. To prevent inadvertent mistakes in working, HR should prepare a checklist for FFS. I've listed a few aspects:
1. Is the employee eligible for Gratuity?
2. Days of notice period served.
3. Recovery of notice period if any.
4. EL available for encashment till the date of exit.
5. Medical reimbursement applicable till the date of exit.
6. Recovery of Medical reimbursement availed in excess of entitlement.
7. LTA applicable till the date of exit.
8. Recovery of LTA availed in excess of entitlement.
9. IT recovery after considering the deductions submitted by the employee. In this aspect, the Finance department has to play a vital role.
10. Profession tax deductions till the date of exit.
11. Recovery of unsettled imprest/advance drawn by the employee.
12. Retrieval of property belonging to the company or recovery of value equivalent.
13. Is he eligible for Superannuation benefits?
14. Is the employee eligible for bonus? This has to be noted and paid as and when it arises.
A few points get added from time to time on a case-to-case basis, and these points become part of the standard checklist.
Generally, we tend to give more attention to employees who work with us compared to attention for employees who have quit. If we delay the process beyond the date promised to the employee who has quit, the information gets passed on to the employees who are working, and they may tend to exhaust all the eligible benefits and abandon employment without proper notice due to lack of confidence.
This is my opinion, and I have been practicing this for the past 30 years, and I have had instances of a few rehiring as the employee who quit felt he was treated better in our company.
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From India, Madras
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1. Is the employee eligible for Gratuity?
2. Days of notice period served.
3. Recovery of notice period if any.
4. EL available for encashment till the date of exit.
5. Medical reimbursement applicable till the date of exit.
6. Recovery of Medical reimbursement availed in excess of entitlement.
7. LTA applicable till the date of exit.
8. Recovery of LTA availed in excess of entitlement.
9. IT recovery after considering the deductions submitted by the employee. In this aspect, the Finance department has to play a vital role.
10. Profession tax deductions till the date of exit.
11. Recovery of unsettled imprest/advance drawn by the employee.
12. Retrieval of property belonging to the company or recovery of value equivalent.
13. Is he eligible for Superannuation benefits?
14. Is the employee eligible for bonus? This has to be noted and paid as and when it arises.
A few points get added from time to time on a case-to-case basis, and these points become part of the standard checklist.
Generally, we tend to give more attention to employees who work with us compared to attention for employees who have quit. If we delay the process beyond the date promised to the employee who has quit, the information gets passed on to the employees who are working, and they may tend to exhaust all the eligible benefits and abandon employment without proper notice due to lack of confidence.
This is my opinion, and I have been practicing this for the past 30 years, and I have had instances of a few rehiring as the employee who quit felt he was treated better in our company.
Regards
From India, Madras
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Yes, thanks for the inputs, Praful. I enquired with my upcoming company's HR, and I got a positive response.
@Kannan sir, my area of expertise is information security, and there is a huge need for professionals in this area. Therefore, companies are willing to hire people at any cost from other competitors without worrying about 2 or 3 years. I hope this trend will not affect me in the long run. Many thanks for your inputs; they were really useful.
From India, Noida
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@Kannan sir, my area of expertise is information security, and there is a huge need for professionals in this area. Therefore, companies are willing to hire people at any cost from other competitors without worrying about 2 or 3 years. I hope this trend will not affect me in the long run. Many thanks for your inputs; they were really useful.
From India, Noida
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Gratuity ceiling for private sector employees to be raised to Rs 20 lakh
New Delhi: Formal sector workers may soon be eligible for up to Rs 20 lakh tax-free gratuity as central trade unions have agreed on the proposal in a tripartite consultation with the Labour Ministry.
The central trade unions have agreed on doubling the gratuity amount ceiling as an interim measure in a tripartite meeting on the proposed amendment to the Payment of Gratuity Act conducted today by the Labour Ministry.
The unions demanded the removal of conditions asking to have at least 10 employees in an establishment and a minimum of five years of service for the payment of gratuity.
"While accepting the maximum payment limit of Rs 20 lakh as an interim measure, the unions demanded that the ceilings/limit with respect to the number of employees and years of service should be removed," the All India Trade Union Congress (AITUC) said in a statement.
It said, "The central trade unions have been urging the government that the ceiling in the amount of gratuity should be removed."
At present, as per the Payment of Gratuity Act, an employee is required to do a minimum service of five years to become eligible for a gratuity amount. Moreover, the Act applies to those establishments where the number of employees is not less than 10.
The statement said the application of the amended provision regarding the maximum amount should be made effective from January 1, 2016, as done in the case of central government employees.
Besides that, the rate of 15 days' wages for each completed year of service to be raised to 30 days' wages, the unions demanded.
The proposed amendment to the Payment of Gratuity Act as circulated by the government along with the letter dated February 15, 2017, only deals with enhancing the ceiling of the maximum amount under Section 4(3) of the Act from Rs 10 lakh to Rs 20 lakh, the unions said.
They pointed out during the meeting that the proposed amendment is being brought to bring the maximum ceiling amount to Rs 20 lakh in line with the recommendation of the 7th Central Pay Commission as accepted by the government.
MUST READ
7th Pay Commission: Gratuity ceiling doubled to Rs 20 lakh
The relevant amendment for central government employees was notified on July 25, 2016, and the enhanced amount ceiling was made effective from January 1, 2016.
The unions are of the view that the delay of 8 months for employees covered under the Payment of Gratuity Act should not result in adversely affecting the interest of the concerned employees.
The employers as well as state representatives also agreed to the proposal of raising the amount of gratuity to Rs 20 lakh, it said.
Regards
S. Boopathi
From India, Coimbatore
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New Delhi: Formal sector workers may soon be eligible for up to Rs 20 lakh tax-free gratuity as central trade unions have agreed on the proposal in a tripartite consultation with the Labour Ministry.
The central trade unions have agreed on doubling the gratuity amount ceiling as an interim measure in a tripartite meeting on the proposed amendment to the Payment of Gratuity Act conducted today by the Labour Ministry.
The unions demanded the removal of conditions asking to have at least 10 employees in an establishment and a minimum of five years of service for the payment of gratuity.
"While accepting the maximum payment limit of Rs 20 lakh as an interim measure, the unions demanded that the ceilings/limit with respect to the number of employees and years of service should be removed," the All India Trade Union Congress (AITUC) said in a statement.
It said, "The central trade unions have been urging the government that the ceiling in the amount of gratuity should be removed."
At present, as per the Payment of Gratuity Act, an employee is required to do a minimum service of five years to become eligible for a gratuity amount. Moreover, the Act applies to those establishments where the number of employees is not less than 10.
The statement said the application of the amended provision regarding the maximum amount should be made effective from January 1, 2016, as done in the case of central government employees.
Besides that, the rate of 15 days' wages for each completed year of service to be raised to 30 days' wages, the unions demanded.
The proposed amendment to the Payment of Gratuity Act as circulated by the government along with the letter dated February 15, 2017, only deals with enhancing the ceiling of the maximum amount under Section 4(3) of the Act from Rs 10 lakh to Rs 20 lakh, the unions said.
They pointed out during the meeting that the proposed amendment is being brought to bring the maximum ceiling amount to Rs 20 lakh in line with the recommendation of the 7th Central Pay Commission as accepted by the government.
MUST READ
7th Pay Commission: Gratuity ceiling doubled to Rs 20 lakh
The relevant amendment for central government employees was notified on July 25, 2016, and the enhanced amount ceiling was made effective from January 1, 2016.
The unions are of the view that the delay of 8 months for employees covered under the Payment of Gratuity Act should not result in adversely affecting the interest of the concerned employees.
The employers as well as state representatives also agreed to the proposal of raising the amount of gratuity to Rs 20 lakh, it said.
Regards
S. Boopathi
From India, Coimbatore
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Relieving Clearance form.doc