Dear All,
I have an query i am working in a Private company as a assistant HR.,our director has terminate an employee without a valid reason and the company is taking her ex Gracia amount 10% of her CTC.now she wants her full and final settlement i had a discussion with my director he told me that we will not give her ex Gracia amount. she wants me to a fair decision what we can do in this situation.
Kindly reply ASAP.
Thanks & Regards:
Gitika
From India, Mumbai
1I have an query i am working in a Private company as a assistant HR.,our director has terminate an employee without a valid reason and the company is taking her ex Gracia amount 10% of her CTC.now she wants her full and final settlement i had a discussion with my director he told me that we will not give her ex Gracia amount. she wants me to a fair decision what we can do in this situation.
Kindly reply ASAP.
Thanks & Regards:
Gitika
From India, Mumbai
Dear Gitika,
You have written that "company is taking her ex Gracia amount 10% of her CTC". Has company taken this amount as a one time measure or company had been deducting 10% of CTC each month? Has this deduction mentioned in the appointment letter of the employee?
As a Asst HR Manager, you are representative of your management. Therefore, it is your duty to communicate their point of view to the employee. However, while doing so, do not just become a communicator.
In the meanwhile, if you feel that deduction is illegal, apprise your management how it is illegal. Legality of the decision apart, you may tell him that if the other staff member perceive this deduction as unfair, it will impact the organisation's culture. It will destroy the environment of trust which is very important for any company. However, whether to say this will depend on Md's personality. Many of them are headstrong and just do not wish to listen anything from the subordinates.
Lastly, if you have evidence that shows that the deduction is illegal then you may pass on informal message to the employee about approaching the labour office of the local area and solving the problem. However, do not tell this on telephone but in private. Ensure that the employee is not recording your conversation.
Thanks,
Dinesh Divekar
From India, Bangalore
You have written that "company is taking her ex Gracia amount 10% of her CTC". Has company taken this amount as a one time measure or company had been deducting 10% of CTC each month? Has this deduction mentioned in the appointment letter of the employee?
As a Asst HR Manager, you are representative of your management. Therefore, it is your duty to communicate their point of view to the employee. However, while doing so, do not just become a communicator.
In the meanwhile, if you feel that deduction is illegal, apprise your management how it is illegal. Legality of the decision apart, you may tell him that if the other staff member perceive this deduction as unfair, it will impact the organisation's culture. It will destroy the environment of trust which is very important for any company. However, whether to say this will depend on Md's personality. Many of them are headstrong and just do not wish to listen anything from the subordinates.
Lastly, if you have evidence that shows that the deduction is illegal then you may pass on informal message to the employee about approaching the labour office of the local area and solving the problem. However, do not tell this on telephone but in private. Ensure that the employee is not recording your conversation.
Thanks,
Dinesh Divekar
From India, Bangalore
Ms. Gitika,
Greetings ....
The term "Ex-gratia" itself suggests that "it is not a part of One's salary" and is paid over and above the salary. However, if it is mentioned in the Letter of Appointment, you need to confirm first if this payment is subject to fulfillment of certain condition. In case such condition is found in the Letter of Appointment, payment of the same would be a clear discretion of the Management and your MD can always deny payment of Ex-gratia on plea of "non-fulfillment" of such payment condition.
But if there is no such clause in the Letter and if the Employee is drawing through payslip regularly it is already been proved that "Ex-gratia" is a part of her Salary and denial of Payment of Eg-gratia would lead to legal complication. And .... while I say so mind you that Labour Court Judgements are always Pro-Labour.
Regards,
From India, Pune
Greetings ....
The term "Ex-gratia" itself suggests that "it is not a part of One's salary" and is paid over and above the salary. However, if it is mentioned in the Letter of Appointment, you need to confirm first if this payment is subject to fulfillment of certain condition. In case such condition is found in the Letter of Appointment, payment of the same would be a clear discretion of the Management and your MD can always deny payment of Ex-gratia on plea of "non-fulfillment" of such payment condition.
But if there is no such clause in the Letter and if the Employee is drawing through payslip regularly it is already been proved that "Ex-gratia" is a part of her Salary and denial of Payment of Eg-gratia would lead to legal complication. And .... while I say so mind you that Labour Court Judgements are always Pro-Labour.
Regards,
From India, Pune
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