Resolving Contract Agency Settlement Disputes: Employee Rights and Legal Recourse - CiteHR

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Anonymous
I worked for an MNC in Kerala as a contract software engineer from February 2012 to September 2013 (20 months). The contract agency is addressed in Chennai in the offer letter.

Monthly Salary Breakup

- Basic: 15,500
- HRA: 7,750
- Transportation Allowance: 800
- Medical Reimbursement: 1,250
- Special Allowances: 5,700
- Leave Encashment: 1,192
- Health Insurance: 100
- LTA: 1,550
- Gratuity: 745

Total Cost to Company: 34,588

Of these, I received 31,000 (although the CTC is 34,588 in the offer letter) only. The rest 3,588 (Leave Encashment + Health Insurance + LTA + Gratuity) was deducted. No tax was paid by them, and no paid leaves were given.

The last month's salary was not paid until December for no reason. The remaining amount from Leave Encashment and LTA is about 49,000. After several promised dates, they are not giving the amount or informing me of how much I will receive.

Am I eligible for the LTA? Since I did not get the final settlement done after 4 months, can I legally claim it with a penalty? Kindly advise.

Details from the offer letter are attached.

From India, Trivandrum
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File Type: doc offer.doc (12.5 KB, 37 views)

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bcarya
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As per the attachment and supplied information, the paid salary, i.e., 31k, is correct. LTA, Leave Encashment, and Gratuity (as included in CTC) are payable at the end of the contract in a contract engagement. Health Insurance should be payable to the Insurance Company from where the organization has taken GMP or GPA. Since you mentioned that you were working with them since Feb'2012, then LTA, Leave Encashment, and Gratuity must be settled on 31st Jan'2013. If it was not settled at that time, then you can claim for the same and the further pending dues also.

If they are not responding in this regard, then you can write them a registered letter mentioning that you have been continuously following up with them for the last 4 months and your account is still not settled. Ask them to settle your account at the earliest. You can also mention that if your account is not settled within a reasonable time, you will approach Legal Authorities.

Hope this helps you.

Regards

From India, Delhi
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