Payroll Point of View:
If an employee works even for one day, the employer is liable to pay the salary/earnings, and the PF has to be deducted from the earnings. Deductions, including notice period recovery, should be calculated separately.
The best way is to calculate the January salary and deduct the PF accordingly. Keep the net ON HOLD/WITHHELD. Pay the PF payment.
During full and final settlement, put the notice period recovery as a deduction (whatever is decided by your management) and add the previously held salary. You will receive a minus figure as a settlement (recovery). Recover it and close the account.
This is the proper way of accounting for payroll and statutory compliance.
From India, Chennai
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109If an employee works even for one day, the employer is liable to pay the salary/earnings, and the PF has to be deducted from the earnings. Deductions, including notice period recovery, should be calculated separately.
The best way is to calculate the January salary and deduct the PF accordingly. Keep the net ON HOLD/WITHHELD. Pay the PF payment.
During full and final settlement, put the notice period recovery as a deduction (whatever is decided by your management) and add the previously held salary. You will receive a minus figure as a settlement (recovery). Recover it and close the account.
This is the proper way of accounting for payroll and statutory compliance.
From India, Chennai
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Dear Samir,
I want to ask and suggest my viewpoints as below:
1- People join and leave organizations in their way is a normal routine thing. People join based on potential/intellectual assets, and at the same time, they bring in some deficiency aiming to make up at the new organization. You have not issued an appointment letter, and before this candidate resigned, does not permit any scope to create/act anything wrong, mischievous, and damaging. You should have done your work with integrity and honesty towards the company and candidate both. Don't you think that this is a dishonest act you want to play as a game which was not permitted neither earlier nor never ever? I fail to understand, why are you thinking about it even? Who will gain or who is at loss, and why are you attempting to jump way from limits of professionalism? The problem-solving approach here is not only incorrect but also objectionable on moral and legal grounds both. As against the proposed demand of notice pay, the gentleman is accepting your punishment also. So here is scope and opportunity available to you to correct the action. Treat it as a normal issue without any intention in mind to harm the employee for none of any faults from his side. I doubt you will earn any credit/respect from a superior if he believes in a fair and firm formula.
2- Since his Gross salary is Rs.60,000/month. Please do not make him PF/EPS member. Design his PFable salary in such a manner that it becomes more than Rs. 15,000, and he goes away happily, and you stand done and complied with in the right manner. There is a good scope available to you to exempt from PF coverage. Form 11 is not required, and he will be thus in the list of exempted members.
Thanks and best regards,
RDS Yadav
From India, Delhi
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I want to ask and suggest my viewpoints as below:
1- People join and leave organizations in their way is a normal routine thing. People join based on potential/intellectual assets, and at the same time, they bring in some deficiency aiming to make up at the new organization. You have not issued an appointment letter, and before this candidate resigned, does not permit any scope to create/act anything wrong, mischievous, and damaging. You should have done your work with integrity and honesty towards the company and candidate both. Don't you think that this is a dishonest act you want to play as a game which was not permitted neither earlier nor never ever? I fail to understand, why are you thinking about it even? Who will gain or who is at loss, and why are you attempting to jump way from limits of professionalism? The problem-solving approach here is not only incorrect but also objectionable on moral and legal grounds both. As against the proposed demand of notice pay, the gentleman is accepting your punishment also. So here is scope and opportunity available to you to correct the action. Treat it as a normal issue without any intention in mind to harm the employee for none of any faults from his side. I doubt you will earn any credit/respect from a superior if he believes in a fair and firm formula.
2- Since his Gross salary is Rs.60,000/month. Please do not make him PF/EPS member. Design his PFable salary in such a manner that it becomes more than Rs. 15,000, and he goes away happily, and you stand done and complied with in the right manner. There is a good scope available to you to exempt from PF coverage. Form 11 is not required, and he will be thus in the list of exempted members.
Thanks and best regards,
RDS Yadav
From India, Delhi
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Dear Seniors,
I have a query regarding this topic. I have heard that in order to establish an employee-employer relationship, an appointment letter must be issued and accepted by both the employer and employee. Since the appointment letter was not issued, is there any legal requirement for the employer to pay the salary? Also, do they have any legal right to ask for recovery?
From India, Mumbai
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I have a query regarding this topic. I have heard that in order to establish an employee-employer relationship, an appointment letter must be issued and accepted by both the employer and employee. Since the appointment letter was not issued, is there any legal requirement for the employer to pay the salary? Also, do they have any legal right to ask for recovery?
From India, Mumbai
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls