Dear seniors, I need a full and final settlement company policy and please share details "any time line is mentioned in any act for closing full and final settlement".
From India, Chennai
1From India, Chennai
Dear Gopi,
As "F&F Settlement" pertains to the act of payment of dues which are mostly legal to an employee by the employer on the termination of his employment, I think that whatever policy an employer can have in this regard should not run counter to the statutory provisions governing the respective components of the terminal benefits.
For example, if gratuity forms part of the F&F, it should be paid within 30 days from the actual date of termination.
If it is wages/salary for the period worked, it shall be paid on the last working day. Strictly speaking, the same condition applies to the payment of notice pay to an employee if the cause for termination entitles him to that. Other dues like encashment of leave etc., would also require immediate disbursement as soon as termination of employment becomes effective. Only statutory bonus payable for the period of service rendered prior to the date of termination could be paid on the close of the Accounting Year for which the percentage of bonus is yet to be decided.
In fine, the process of F&F Settlement should be completed within 30 days from the actual date of termination of employment depending upon it's nature.
From India, Salem
As "F&F Settlement" pertains to the act of payment of dues which are mostly legal to an employee by the employer on the termination of his employment, I think that whatever policy an employer can have in this regard should not run counter to the statutory provisions governing the respective components of the terminal benefits.
For example, if gratuity forms part of the F&F, it should be paid within 30 days from the actual date of termination.
If it is wages/salary for the period worked, it shall be paid on the last working day. Strictly speaking, the same condition applies to the payment of notice pay to an employee if the cause for termination entitles him to that. Other dues like encashment of leave etc., would also require immediate disbursement as soon as termination of employment becomes effective. Only statutory bonus payable for the period of service rendered prior to the date of termination could be paid on the close of the Accounting Year for which the percentage of bonus is yet to be decided.
In fine, the process of F&F Settlement should be completed within 30 days from the actual date of termination of employment depending upon it's nature.
From India, Salem
In India, there is no specific time frame mandated by a central act for the closure of full and final settlement of an employee’s dues after resignation or termination. However, some general guidelines and practices are followed:
Industrial Employment (Standing Orders) Act, 1946: According to this Act, the payment of wages should be made within two working days from the date of termination of employment.
Shops and Establishments Act: Different states have their own Shops and Establishments Acts, which may specify timelines for the settlement of dues. For example, the Uttar Pradesh Shops and Establishments Act may have specific provisions regarding this, which usually range from a few days to a month.
Company Policy: In the absence of a specific statutory mandate, companies often have their own policies regarding the timeline for full and final settlement. This is typically mentioned in the employee handbook or the employment contract. Commonly, companies complete this process within 30-45 days from the employee’s last working day.
For a precise timeline applicable in Uttar Pradesh or specific companies, it would be best to refer to the Uttar Pradesh Shops and Establishments Act and the company’s internal policies. If you need detailed information from the act or company policies, please let me know!
From India, Mumbai
Industrial Employment (Standing Orders) Act, 1946: According to this Act, the payment of wages should be made within two working days from the date of termination of employment.
Shops and Establishments Act: Different states have their own Shops and Establishments Acts, which may specify timelines for the settlement of dues. For example, the Uttar Pradesh Shops and Establishments Act may have specific provisions regarding this, which usually range from a few days to a month.
Company Policy: In the absence of a specific statutory mandate, companies often have their own policies regarding the timeline for full and final settlement. This is typically mentioned in the employee handbook or the employment contract. Commonly, companies complete this process within 30-45 days from the employee’s last working day.
For a precise timeline applicable in Uttar Pradesh or specific companies, it would be best to refer to the Uttar Pradesh Shops and Establishments Act and the company’s internal policies. If you need detailed information from the act or company policies, please let me know!
From India, Mumbai
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Full n final settlement.doc