Hi Seniors,
I need some guidance regarding exiting from my current company. I joined my current organization around 4 years ago and recently received a better offer from another firm. So I've decided to quit my current organization and have put down my resignation wanting to serve my full 2-month notice period (because I don't want to join my next company before 2 months).
Now I didn't really have any pending work from my side, so my current manager (probably in a fit of grudge of me leaving) is playing games forcing the company to relieve me earlier (within this week). I had a few discussions with my current company HR, and even after telling them that I'm willing to work for 2 months, they have decided to relieve me this week.
As per the clause in my offer letter, any party (the company in this case) needs to pay 2 months' salary in lieu of early exit or relieving. Now as I understand, there's usually a Full and Final settlement process with the company for final payment. However, I have a few questions regarding the same:
1) How is the final settlement amount calculated? e.g., if I put down my resignation on 15th Feb, then would I be liable to complete the salary of 2 months? Are there any other benefits provided alongside?
2) When would I be receiving this notice period salary? After 2 months?
3) How would I receive the salary for the remaining days (1st to 15th Feb)? Is it usually paid with the final settlement or separately?
Now, I understand these questions would be better discussed with my company HR (which I am going to discuss today). But given the untrustworthy behavior of the HR department thus far after resignation, I wanted to get a heads up on how this is usually done in the industry so that I don't get conned by them.
Thank You
From India, Delhi
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I need some guidance regarding exiting from my current company. I joined my current organization around 4 years ago and recently received a better offer from another firm. So I've decided to quit my current organization and have put down my resignation wanting to serve my full 2-month notice period (because I don't want to join my next company before 2 months).
Now I didn't really have any pending work from my side, so my current manager (probably in a fit of grudge of me leaving) is playing games forcing the company to relieve me earlier (within this week). I had a few discussions with my current company HR, and even after telling them that I'm willing to work for 2 months, they have decided to relieve me this week.
As per the clause in my offer letter, any party (the company in this case) needs to pay 2 months' salary in lieu of early exit or relieving. Now as I understand, there's usually a Full and Final settlement process with the company for final payment. However, I have a few questions regarding the same:
1) How is the final settlement amount calculated? e.g., if I put down my resignation on 15th Feb, then would I be liable to complete the salary of 2 months? Are there any other benefits provided alongside?
2) When would I be receiving this notice period salary? After 2 months?
3) How would I receive the salary for the remaining days (1st to 15th Feb)? Is it usually paid with the final settlement or separately?
Now, I understand these questions would be better discussed with my company HR (which I am going to discuss today). But given the untrustworthy behavior of the HR department thus far after resignation, I wanted to get a heads up on how this is usually done in the industry so that I don't get conned by them.
Thank You
From India, Delhi
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Hello,
It's unfortunate to hear about your predicament. However, I'll provide you with some general guidelines about the final settlement process. Please note that specific procedures can vary from company to company, and it's crucial to refer to your company's policy or consult with a legal professional for advice tailored to your situation.
1. Calculation of the Final Settlement Amount:
- The final settlement typically includes your pending salary, any accrued leaves, gratuity (if applicable), and in your case, payment in lieu of notice. If you resigned on the 15th of February and your company is relieving you earlier than your notice period, they should pay you for the full two months' notice period. This would be your basic salary along with any allowances.
- Additionally, if there are any other benefits or bonuses due to you, those should be included in the final settlement.
2. Timing of the Final Settlement:
- The timing of the final settlement can vary. However, according to the Payment of Wages Act, 1936, if the employment is terminated by the employer, then the final settlement should ideally be made on the day of termination. If it is not possible, it should be done within two working days.
3. Payment of Salary for Worked Days:
- Your salary for the days you worked in February (1st to 15th) should be part of your final settlement. Some companies may choose to pay this separately, but it's usually included in the final settlement.
Remember, it's essential to have everything in writing. Make sure you receive a copy of your relieving letter, which should mention the last working day and the details of the final settlement.
In the event of any discrepancies or unfair practices, don't hesitate to seek legal advice. The Industrial Disputes Act, 1947, and the Shops and Establishment Act (specific to your state) are laws that protect employee rights in India.
Good luck with your transition, and I hope this information helps you navigate your final settlement smoothly.
From India, Gurugram
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26It's unfortunate to hear about your predicament. However, I'll provide you with some general guidelines about the final settlement process. Please note that specific procedures can vary from company to company, and it's crucial to refer to your company's policy or consult with a legal professional for advice tailored to your situation.
1. Calculation of the Final Settlement Amount:
- The final settlement typically includes your pending salary, any accrued leaves, gratuity (if applicable), and in your case, payment in lieu of notice. If you resigned on the 15th of February and your company is relieving you earlier than your notice period, they should pay you for the full two months' notice period. This would be your basic salary along with any allowances.
- Additionally, if there are any other benefits or bonuses due to you, those should be included in the final settlement.
2. Timing of the Final Settlement:
- The timing of the final settlement can vary. However, according to the Payment of Wages Act, 1936, if the employment is terminated by the employer, then the final settlement should ideally be made on the day of termination. If it is not possible, it should be done within two working days.
3. Payment of Salary for Worked Days:
- Your salary for the days you worked in February (1st to 15th) should be part of your final settlement. Some companies may choose to pay this separately, but it's usually included in the final settlement.
Remember, it's essential to have everything in writing. Make sure you receive a copy of your relieving letter, which should mention the last working day and the details of the final settlement.
In the event of any discrepancies or unfair practices, don't hesitate to seek legal advice. The Industrial Disputes Act, 1947, and the Shops and Establishment Act (specific to your state) are laws that protect employee rights in India.
Good luck with your transition, and I hope this information helps you navigate your final settlement smoothly.
From India, Gurugram
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