Dear All,
I have following query:
In our company an Employee has joined in month of 1st Jan 2009 & resigned in the month of 31st October 2009. In his appointment letter it is clearly mentioned that he will eligible for LTA & Medical after completion of one year service & accordingly we made full & final statement but he refuse to accept it & says the will go to the labour office.
According to the concern employee:
1) LTA & Medical is part of his CTC & it should calculate on pro rata basis.
2) As per the factory act he has worked more than 240days. Means worked one year.
3) If any employee completed 4 year and 240days he is applicable for 5 years gratuity.
4) Last but not least company’s standing orders are not certified with the labour office.
You advise will be highly appreciated.
Bala Panmand
From India, Mumbai
5I have following query:
In our company an Employee has joined in month of 1st Jan 2009 & resigned in the month of 31st October 2009. In his appointment letter it is clearly mentioned that he will eligible for LTA & Medical after completion of one year service & accordingly we made full & final statement but he refuse to accept it & says the will go to the labour office.
According to the concern employee:
1) LTA & Medical is part of his CTC & it should calculate on pro rata basis.
2) As per the factory act he has worked more than 240days. Means worked one year.
3) If any employee completed 4 year and 240days he is applicable for 5 years gratuity.
4) Last but not least company’s standing orders are not certified with the labour office.
You advise will be highly appreciated.
Bala Panmand
From India, Mumbai
According to the concern employee:
1) LTA & Medical is part of his CTC & it should calculate on pro rata basis.-He is absolutely correct!!!
2) As per the factory act he has worked more than 240days. Means worked one year. - 240 day is physical attendance & not the months.
3) If any employee completed 4 year and 240days he is applicable for 5 years gratuity. - Yes
4) Last but not least company’s standing orders are not certified with the labour office. - Get it Certified at the earliest
From India, Pune
1) LTA & Medical is part of his CTC & it should calculate on pro rata basis.-He is absolutely correct!!!
2) As per the factory act he has worked more than 240days. Means worked one year. - 240 day is physical attendance & not the months.
3) If any employee completed 4 year and 240days he is applicable for 5 years gratuity. - Yes
4) Last but not least company’s standing orders are not certified with the labour office. - Get it Certified at the earliest
From India, Pune
Hi
If an employee had completed 240 working days, it amounts to completion of 1 year of service as per law, in your case the said employee had worked for 300 days , you minus all Sundays Or the weekly off's which shall be approx. 43 days, then the total working days come to 257 working days, hence he had worked for more than 240 days, which means he had completed 1 year of service as per factories Act.
He is eligible to the benefit of LTA & Medical allowances on prorate basis, and even the leaves left as balance to his account to be paid along with bonus for 10 months period.
Coming to the point of Standing Orders, if a company having a employees strength of 50 or more, they should get standing orders approved from the Labour commissioner office, it is a statutory requirement and must, if less than 50 Nos. no need for standing orders certification/ registration.
Mohan Rao
Manager HR
From India, Visakhapatnam
If an employee had completed 240 working days, it amounts to completion of 1 year of service as per law, in your case the said employee had worked for 300 days , you minus all Sundays Or the weekly off's which shall be approx. 43 days, then the total working days come to 257 working days, hence he had worked for more than 240 days, which means he had completed 1 year of service as per factories Act.
He is eligible to the benefit of LTA & Medical allowances on prorate basis, and even the leaves left as balance to his account to be paid along with bonus for 10 months period.
Coming to the point of Standing Orders, if a company having a employees strength of 50 or more, they should get standing orders approved from the Labour commissioner office, it is a statutory requirement and must, if less than 50 Nos. no need for standing orders certification/ registration.
Mohan Rao
Manager HR
From India, Visakhapatnam
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