Hi!
I had 3 questions regarding payment of full & final settlement to an exiting employee.
(1) Say the employee resigns on 1st March and has a notice period of 2 months to serve, the relieving date shall be 30th April. Would the salary for these 2 months be paid as a full & final settlement OR would the salary for March be transferred to the salary account and the salary for April be paid as a full & final settlement.
(2) If the employee resigns on 1st March and the relieving date is 30th April, but the employee sends an email mentioning that he / she will not be coming to office from 1st April onwards, is this considered as an absconding case? [The HR here has already sent an acceptance mentioning the relieving date as 30th April per the notice period to be served as mentioned in the appointment letter]
(3) If the employee resigns as per case (2) and stops coming to office from 1st April, is it legal for the company to do a salary reversal if the payment for March has been made to the salary account?
I would request members to let me have their answers on the above.
Regards,
Nikita
From India, Pune
11I had 3 questions regarding payment of full & final settlement to an exiting employee.
(1) Say the employee resigns on 1st March and has a notice period of 2 months to serve, the relieving date shall be 30th April. Would the salary for these 2 months be paid as a full & final settlement OR would the salary for March be transferred to the salary account and the salary for April be paid as a full & final settlement.
(2) If the employee resigns on 1st March and the relieving date is 30th April, but the employee sends an email mentioning that he / she will not be coming to office from 1st April onwards, is this considered as an absconding case? [The HR here has already sent an acceptance mentioning the relieving date as 30th April per the notice period to be served as mentioned in the appointment letter]
(3) If the employee resigns as per case (2) and stops coming to office from 1st April, is it legal for the company to do a salary reversal if the payment for March has been made to the salary account?
I would request members to let me have their answers on the above.
Regards,
Nikita
From India, Pune
Dear Nikita,
if a employee resigned on 1 st march and his relieving date is 30th april , the whole salary would come in full and final but if any special case is there or is in good faith company can transfer his salary on march but if person leave the organization after 30 th march it's a revenue leakage case so be careful.
2in second case -there is recovery it is not absconding case if he has already provided information earlier.
3-- employer can reverse salary -depend on banking system ..
for any help feel free to call
Amit
9311742899
From India, Delhi
if a employee resigned on 1 st march and his relieving date is 30th april , the whole salary would come in full and final but if any special case is there or is in good faith company can transfer his salary on march but if person leave the organization after 30 th march it's a revenue leakage case so be careful.
2in second case -there is recovery it is not absconding case if he has already provided information earlier.
3-- employer can reverse salary -depend on banking system ..
for any help feel free to call
Amit
9311742899
From India, Delhi
Hi Amit,
Thanks for the reply. This surely helps.
I had one more query - hope you wouldn't mind answering.
In point # 2, the person earlier accepted to come until the end of the notice period i.e. 30th April but kept on pestering the manager to relieve earlier. The manager denied since the resource was crucial to the project. All of a sudden if on 1st April the person (after receiving the salary for March) sends an email mentioning that he /she will not be coming to office from 1st April since the company didn't consider the request for relieving earlier, can this be an absconding case?
From India, Pune
Thanks for the reply. This surely helps.
I had one more query - hope you wouldn't mind answering.
In point # 2, the person earlier accepted to come until the end of the notice period i.e. 30th April but kept on pestering the manager to relieve earlier. The manager denied since the resource was crucial to the project. All of a sudden if on 1st April the person (after receiving the salary for March) sends an email mentioning that he /she will not be coming to office from 1st April since the company didn't consider the request for relieving earlier, can this be an absconding case?
From India, Pune
Dear Nikita,
Please find my comment in blue colour
I had 3 questions regarding payment of full & final settlement to an exiting employee.
(1) Say the employee resigns on 1st March and has a notice period of 2 months to serve, the relieving date shall be 30th April. Would the salary for these 2 months be paid as a full & final settlement OR would the salary for March be transferred to the salary account and the salary for April be paid as a full & final settlement. - It depends on company policy but do you think employee will be able to survive without salary for consecutively 02 months. Try to support employees ( Including those who have resigned or left ) it will help to raise th morale of existing & "would be" employee
(2) If the employee resigns on 1st March and the relieving date is 30th April, but the employee sends an email mentioning that he / she will not be coming to office from 1st April onwards, is this considered as an absconding case? [The HR here has already sent an acceptance mentioning the relieving date as 30th April per the notice period to be served as mentioned in the appointment letter]- Do you have any clause for separation that either party has to pay X amount in case fail to observe Notice Period.
(3) If the employee resigns as per case (2) and stops coming to office from 1st April, is it legal for the company to do a salary reversal if the payment for March has been made to the salary account? - Salaty reversal is not possible for that you can chech with your existing Payroll - Bank.
I would request members to let me have their answers on the above.
Regards,
Nikita[/QUOTE]
From India, Pune
Please find my comment in blue colour
I had 3 questions regarding payment of full & final settlement to an exiting employee.
(1) Say the employee resigns on 1st March and has a notice period of 2 months to serve, the relieving date shall be 30th April. Would the salary for these 2 months be paid as a full & final settlement OR would the salary for March be transferred to the salary account and the salary for April be paid as a full & final settlement. - It depends on company policy but do you think employee will be able to survive without salary for consecutively 02 months. Try to support employees ( Including those who have resigned or left ) it will help to raise th morale of existing & "would be" employee
(2) If the employee resigns on 1st March and the relieving date is 30th April, but the employee sends an email mentioning that he / she will not be coming to office from 1st April onwards, is this considered as an absconding case? [The HR here has already sent an acceptance mentioning the relieving date as 30th April per the notice period to be served as mentioned in the appointment letter]- Do you have any clause for separation that either party has to pay X amount in case fail to observe Notice Period.
(3) If the employee resigns as per case (2) and stops coming to office from 1st April, is it legal for the company to do a salary reversal if the payment for March has been made to the salary account? - Salaty reversal is not possible for that you can chech with your existing Payroll - Bank.
I would request members to let me have their answers on the above.
Regards,
Nikita[/QUOTE]
From India, Pune
Dear Nikita,
Response to your query. Hope this is helpful.
Case 1: The salary for march would be paid as normal and salary for April in F&F.
Case 2: Yes, this will surely be considered as absconding case and breach of contract and suitable action available in law can be taken against the employee.
Case 3: Yes, your company can reverse his salary for the breach of contract, if you have good relations with the Bank. However, in most cases Bank seldom involve in such cases as they fear, they will be made party to case unnecessarily, if the matter goes to court.
Your additional question:
Case 4: Yes, as mentioned in Case 2. Its an absconding case.
Regards
UKmitra
From Saudi Arabia, Riyadh
Response to your query. Hope this is helpful.
Case 1: The salary for march would be paid as normal and salary for April in F&F.
Case 2: Yes, this will surely be considered as absconding case and breach of contract and suitable action available in law can be taken against the employee.
Case 3: Yes, your company can reverse his salary for the breach of contract, if you have good relations with the Bank. However, in most cases Bank seldom involve in such cases as they fear, they will be made party to case unnecessarily, if the matter goes to court.
Your additional question:
Case 4: Yes, as mentioned in Case 2. Its an absconding case.
Regards
UKmitra
From Saudi Arabia, Riyadh
Dear Nikita
KIndly find my opinion on the cases you mentioned:
CAse 1 - Say the employee resigns on 1st March and has a notice period of 2 months to serve, the relieving date shall be 30th April. Would the salary for these 2 months be paid as a full & final settlement OR would the salary for March be transferred to the salary account and the salary for April be paid as a full & final settlement. --- Since the employee has served the Noticwe Period as per Policy, he is entitled to get the salay for both the months
Case 2 - 2) If the employee resigns on 1st March and the relieving date is 30th April, but the employee sends an email mentioning that he / she will not be coming to office from 1st April onwards, is this considered as an absconding case? [The HR here has already sent an acceptance mentioning the relieving date as 30th April per the notice period to be served as mentioned in the appointment letter] - Its not an absconding case, since the employee had intimated earlier. HOwever Company has the right to get recovery , since the employee has not served his full notice period.
case 3)- If the employee resigns as per case (2) and stops coming to office from 1st April, is it legal for the company to do a salary reversal if the payment for March has been made to the salary account? -It depends upon the banking system. However , there are other wayst o get the recovery like holding the Relieving Letter or Experience Letter, since the Company (the employee is going to join) would not give him necessary joining documents until the employee has submitted Relievinng & Experience Letter from the previous employer, or thrugh the Background Check up. So the Company can use these documents as a tool to get the recovery
Seniors, Kindly Correct , if there is some mistake
Regards
Anu Singhal
From India, New Delhi
KIndly find my opinion on the cases you mentioned:
CAse 1 - Say the employee resigns on 1st March and has a notice period of 2 months to serve, the relieving date shall be 30th April. Would the salary for these 2 months be paid as a full & final settlement OR would the salary for March be transferred to the salary account and the salary for April be paid as a full & final settlement. --- Since the employee has served the Noticwe Period as per Policy, he is entitled to get the salay for both the months
Case 2 - 2) If the employee resigns on 1st March and the relieving date is 30th April, but the employee sends an email mentioning that he / she will not be coming to office from 1st April onwards, is this considered as an absconding case? [The HR here has already sent an acceptance mentioning the relieving date as 30th April per the notice period to be served as mentioned in the appointment letter] - Its not an absconding case, since the employee had intimated earlier. HOwever Company has the right to get recovery , since the employee has not served his full notice period.
case 3)- If the employee resigns as per case (2) and stops coming to office from 1st April, is it legal for the company to do a salary reversal if the payment for March has been made to the salary account? -It depends upon the banking system. However , there are other wayst o get the recovery like holding the Relieving Letter or Experience Letter, since the Company (the employee is going to join) would not give him necessary joining documents until the employee has submitted Relievinng & Experience Letter from the previous employer, or thrugh the Background Check up. So the Company can use these documents as a tool to get the recovery
Seniors, Kindly Correct , if there is some mistake
Regards
Anu Singhal
From India, New Delhi
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