I would like to know if an employee has claimed his LTA for the financial year and then resigns in a few months, should the company recover the balance amount for those months with or without interest? Please advise ASAP.
From India, Madras
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From India, Madras
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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
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72From India, Pune
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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?
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From India, Madras
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From India, Madras
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Hello Jyoti There must be some policy of company on recoveries, and once given you can not claim back.
From India, Pune
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From India, Pune
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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
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From India, Pune
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Dear Jyoti,
Since LTA is a fixed amount that is paid once a year (financial year between April to March), if an employee has claimed their full LTA and leaves the job before the completion of the year, LTA can be recovered on a prorated basis. This is an established practice observed by all good HR-driven companies.
Regards,
Rakesh Pd Srivastav
From India, Gurgaon
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Since LTA is a fixed amount that is paid once a year (financial year between April to March), if an employee has claimed their full LTA and leaves the job before the completion of the year, LTA can be recovered on a prorated basis. This is an established practice observed by all good HR-driven companies.
Regards,
Rakesh Pd Srivastav
From India, Gurgaon
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Yes, Jyoti, it can be recovered from the employee in case he/she claimed LTA for the next FY. You have all the rights for that, but you should have it somewhere written in your company document where this policy is stated. There is no specific rule for LTA; it varies from org. to org. You can do things as per your company's requirements.
Keep Smiling~
From India, Mumbai
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Keep Smiling~
From India, Mumbai
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Normally, if an employee leaves after availing LTA for the full year, you can deduct on a pro-rata basis. It is a general practice. You may include the same in your policy and appointment order as well.
Further, this benefit is on an annual basis. No one can claim for the whole year while working only part of the year unless your policy guidelines are as such. Charging interest in such a scenario is unfair.
From India, Hyderabad
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Further, this benefit is on an annual basis. No one can claim for the whole year while working only part of the year unless your policy guidelines are as such. Charging interest in such a scenario is unfair.
From India, Hyderabad
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Dear Jyoti,
This may help you make better and more informed decisions.
1. Category of employee: Is he in the executive cadre? If yes, then LTA may be a part of his CTC. Committed CTC/12 is his eligibility. If altogether he has received more than the entitled amount, please recover.
Regards,
Shailesh Parikh
Vadodara (Gujarat)
99 98 97 1065
From India, Mumbai
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This may help you make better and more informed decisions.
1. Category of employee: Is he in the executive cadre? If yes, then LTA may be a part of his CTC. Committed CTC/12 is his eligibility. If altogether he has received more than the entitled amount, please recover.
Regards,
Shailesh Parikh
Vadodara (Gujarat)
99 98 97 1065
From India, Mumbai
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Yes, as an industrial practice, LTA is recovered once an employee separates from an organization for the remaining period of the month on a 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 recovering interest for this. You may check 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
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From India, Ahmadabad
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Employee reference policy.doc