Hi,
As you have only two employees, there is no need to worry or panic about the applicability of labor laws. The conciliation officer has instructed you to pay the amount based on the gratuity payment formula. However, the applicability of PF/ESI/Gratuity/Bonus to your shop is nil.
The person who has requested separation from your shop is not entitled to receive any terminal benefits under the aforementioned Acts, except for PL leave encashment.
In addition, considering the services provided by the individual, you may want to consider offering an "ex-gratia" payment to them. This is not mandatory under labor statutes but is purely of an obligatory nature. Although not required under the relevant provisions of the PF/ESI Acts, your shop is covered under these Acts. Therefore, you can assist the individual in receiving their PF dues or arrange for the transfer of their PF dues if they secure employment elsewhere.
From India, Aizawl
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699As you have only two employees, there is no need to worry or panic about the applicability of labor laws. The conciliation officer has instructed you to pay the amount based on the gratuity payment formula. However, the applicability of PF/ESI/Gratuity/Bonus to your shop is nil.
The person who has requested separation from your shop is not entitled to receive any terminal benefits under the aforementioned Acts, except for PL leave encashment.
In addition, considering the services provided by the individual, you may want to consider offering an "ex-gratia" payment to them. This is not mandatory under labor statutes but is purely of an obligatory nature. Although not required under the relevant provisions of the PF/ESI Acts, your shop is covered under these Acts. Therefore, you can assist the individual in receiving their PF dues or arrange for the transfer of their PF dues if they secure employment elsewhere.
From India, Aizawl
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Going through the content, a simple question arises: if the shop or establishment never had 10 or more employees in the past, why was EL even paid previously? The post only mentions the present status of the establishment, not its entire history.
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Firm came to a settlement in the meeting and agreed to pay the asked amount of 49500 (service compensation) - 9500 (advance) = 40000 and thus gave a cheque to the employee in front of the ACL. The employee just gave a receipt of full and final settlement stating, "I have received 40000 cheque from firm as my FnF settlement and I have no further monetary claims." That's all. This copy was signed by the ACL and given to the firm owner. In his notesheet, ACL mentioned the case closed. There was no mention of any laws or sections or how the amount of 49500 was reached in the receipt or in ACL notesheet.
Is the owner and her firm safe from any further allegations? Will the employee again create problems? The owner says she just wants peace from all this and does not want this to go further. She stated that she was put on the spot as ACL was saying if you pay now it will settle, or else the employee is ready to go to court, and she did not want any further expenses regarding it. She also agreed since I informed her that since ESI is applicable to her, she has to pay gratuity, which amounts to a higher value than what is asked for right now.
I am just worried that no document from the dept. was given to her, and the receipt given by the employee is very vague. Any other paperwork required since the employee did not give anything else. If required, she will try to connect with the employee and get those papers since it will take a day for the cheque clearance.
From India, Bengaluru
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Is the owner and her firm safe from any further allegations? Will the employee again create problems? The owner says she just wants peace from all this and does not want this to go further. She stated that she was put on the spot as ACL was saying if you pay now it will settle, or else the employee is ready to go to court, and she did not want any further expenses regarding it. She also agreed since I informed her that since ESI is applicable to her, she has to pay gratuity, which amounts to a higher value than what is asked for right now.
I am just worried that no document from the dept. was given to her, and the receipt given by the employee is very vague. Any other paperwork required since the employee did not give anything else. If required, she will try to connect with the employee and get those papers since it will take a day for the cheque clearance.
From India, Bengaluru
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The saying "All is well that ends well" is actualizing; this is all you can hope for. As explained by all learned members, you are not covered under the labor legislations, so the employee has no legal rights that he can agitate against you in any judicial forum. You have already given a lump sum compensation of Rs. 49,500 against a salary of Rs. 11,000/-, which appears reasonable and equitable. Even if the employee ventures into any unwanted litigation, you have enough matter to defend. You can apply to the Office of ACL and get a certified copy of all the orders made in the matter.
From India, Mumbai
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From India, Mumbai
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Dear colleague,
With the settlement arrived before ACL, put all your worries behind. Since he has earlier given a resignation letter and now an F&N receipt with no monetary claim in front of ACL, who has also signed as a party, I don't believe the employee has a valid reason to agitate. Keep the documents safely for any reference in the future.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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With the settlement arrived before ACL, put all your worries behind. Since he has earlier given a resignation letter and now an F&N receipt with no monetary claim in front of ACL, who has also signed as a party, I don't believe the employee has a valid reason to agitate. Keep the documents safely for any reference in the future.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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