Dear Seniors,
If an employee resigns from the organisation when are we required to pay his last worked months salary? Will it be along with the full and final or shall we process his salary and hold back only the F&F? Is there any legal binding on the same.
eg. An employee has resigned on the 9th of March; and is expected to work till the 8th of April (considering one month notice period)
However, the employee has decided to leave the organization on the 31st of March.
Generally, would have have processed and paid his March salary in March and salary for the month of April will be paid along with Full and Final. There wouldn't have been any problem. Now since the employee is leaving the organisation; shall we pay the March salary first and then the F&F in April ? The only recoverables in our case are the Privilege leave accumulated.
Our salary cut off is on the 25th of each month on assume present till the last day of each month.; salaries credited to the employee accounts on the 27th /28th of the respective months.
A quick response is highly appreciated.
Thanking you in advance,
Prema Saldanha
Indeus Life Sciences
From India , Mumbai
If an employee resigns from the organisation when are we required to pay his last worked months salary? Will it be along with the full and final or shall we process his salary and hold back only the F&F? Is there any legal binding on the same.
eg. An employee has resigned on the 9th of March; and is expected to work till the 8th of April (considering one month notice period)
However, the employee has decided to leave the organization on the 31st of March.
Generally, would have have processed and paid his March salary in March and salary for the month of April will be paid along with Full and Final. There wouldn't have been any problem. Now since the employee is leaving the organisation; shall we pay the March salary first and then the F&F in April ? The only recoverables in our case are the Privilege leave accumulated.
Our salary cut off is on the 25th of each month on assume present till the last day of each month.; salaries credited to the employee accounts on the 27th /28th of the respective months.
A quick response is highly appreciated.
Thanking you in advance,
Prema Saldanha
Indeus Life Sciences
From India , Mumbai
Dear Prema Saldanha.
It is depends on your company policy.In this specific case if you have relese the salary till 25th March.but you can hold the rest of salary and can be paid at the time of Full & Final. F& F process time can be defined by the senior management as per their convenience.but the standard time of FNF is 30 Days.also you may recover the amount from the employee if his notice period ends on 8th April.If you are agree with his reliving/last working day then don't need to recover.
From India, Jaipur
8It is depends on your company policy.In this specific case if you have relese the salary till 25th March.but you can hold the rest of salary and can be paid at the time of Full & Final. F& F process time can be defined by the senior management as per their convenience.but the standard time of FNF is 30 Days.also you may recover the amount from the employee if his notice period ends on 8th April.If you are agree with his reliving/last working day then don't need to recover.
From India, Jaipur
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Employee Handbook 2009 FINAL.doc