I would like to know if an employee has claimed his LTA for the financial year and then resigns in few months, the company should recover the amount of balance months with interest or without interest. Please advise ASAP.
From India, Madras
From India, Madras
Hello Jyoti This is depends on companies policy. As per my knowledge is concern you cant not recover LTA once given and he availed benifit of it on travel.
From India, Pune
71From India, Pune
Thanks Atul, but he has claimed LTA for the current year April 2012 - March 2013 and is leaving in December 2012 before completing the financial year. So should we not recover the amount paid for three months i.e. Jan-Mar 2013?
From India, Madras
From India, Madras
Hello Jyoti There must be some policy of company on recoveries, and once given you can not claim back.
From India, Pune
From India, Pune
LTA is a benefit and claimed as per the IT tax for exemption. Please recover without interest on pro-rata basis., Regards, Vinod Bidwaik
From India, Pune
From India, Pune
Dear Jyoti,
Since LTA is a fixed amount which is paid once in a year (Financial Year between April to March). Accordingly, if an employees has claimed his full LTA and leaves the job before the completion of the year, LTA can be recovered back on the prorata basis. This is an established practice and observed by all the good HR driven companies.
Rgds,
Rakesh Pd Srivastav
From India, Gurgaon
Since LTA is a fixed amount which is paid once in a year (Financial Year between April to March). Accordingly, if an employees has claimed his full LTA and leaves the job before the completion of the year, LTA can be recovered back on the prorata basis. This is an established practice and observed by all the good HR driven companies.
Rgds,
Rakesh Pd Srivastav
From India, Gurgaon
Yes, Jyoti it can be recovered from employee incase he/she claimed LTA for the next FYear. You have all the rights for that but you should have somewhere written in your company document where this policy states.
See there is not specific rule for LTA, it varies org. to org. you can do the things as per your company requirement.
Keep Smiling ~
From India, Mumbai
See there is not specific rule for LTA, it varies org. to org. you can do the things as per your company requirement.
Keep Smiling ~
From India, Mumbai
Normally if an employee leaving after availing LTA for the full year, you can deduct on prorata basis. It is a general practice. You may include the same in your policy and appointment order as well. Further, this benefit is on annual basis, no one claim for whole year while working part of the year unless, your policy guidelines are as such. But charging interest is unfair.
From India, Hyderabad
From India, Hyderabad
Dear Jyoti
This may help you for better and right decision.
1. Category of employee: Is he in excecutive cadre, if yes than LTA may be part of his CTC. Cpmmitted CTC/12 is his eligibility. IOf all togather he has fetched more then entitled amount may pl. recover.
Regards
Shailesh Parikh
Vadodara (Gujarat)
99 98 97 1065
From India, Mumbai
This may help you for better and right decision.
1. Category of employee: Is he in excecutive cadre, if yes than LTA may be part of his CTC. Cpmmitted CTC/12 is his eligibility. IOf all togather he has fetched more then entitled amount may pl. recover.
Regards
Shailesh Parikh
Vadodara (Gujarat)
99 98 97 1065
From India, Mumbai
Yes as an industrial practice LTA is recoved once an employee separates from an organization for the remaining period of the month on pro rata basis and your organization is correct on this. Normally there used to be a written policy on it in every company. But I have not heard of reovering interest for this. You may check up with your policy and if it is written in it you have to accept it. wish you good luck in your future venture
From India, Ahmadabad
From India, Ahmadabad
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LTA (REDIFF).doc