Hi all,
If a staff member resigns from his job after serving 7 years as an Executive-Accounts in a company, what benefits are applicable to him at the time of his resignation? Please advise me at your earliest convenience.
From India, Warangal
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12If a staff member resigns from his job after serving 7 years as an Executive-Accounts in a company, what benefits are applicable to him at the time of his resignation? Please advise me at your earliest convenience.
From India, Warangal
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Since resignation is a termination of the contract of employment initiated by the employee himself, he is entitled to the terminal benefit of gratuity only subject to the conditions of applicability of the PG Act, 1972 to the establishment and his completion of the minimum qualifying service.
In addition, he is entitled to encashment of EL at his credit if any and to proportionate bonus for the accounting year during which he worked till the date of his resignation. No retrenchment compensation.
From India, Salem
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In addition, he is entitled to encashment of EL at his credit if any and to proportionate bonus for the accounting year during which he worked till the date of his resignation. No retrenchment compensation.
From India, Salem
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Gratuity, EL encashment and statutory bonus of financial year till the date of resignation. Apart from these benefits, he will be eligible to get his monthly salary and incentives if applicable.
From India, Ghaziabad
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From India, Ghaziabad
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One small correction to Mohammad's post: He is eligible for incentives only if it was a part of his contract. If the incentives are at the option of the employer, then he is not entitled to it as a right.
From India, Mumbai
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From India, Mumbai
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Dear colleague,
To be eligible for the retrenchment benefit, the 'workman' category of the employed person should have been 'retrenched' in the first place as per the provisions of the Industrial Disputes Act/Rules. Retrenchment is an act on the part of the employer to terminate the services, whereas resignation is an act by the employee/workman to end his services. Therefore, as rightly stated by learned colleagues, in this case, he is not entitled to the retrenchment benefit, except for other due terminal benefits.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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To be eligible for the retrenchment benefit, the 'workman' category of the employed person should have been 'retrenched' in the first place as per the provisions of the Industrial Disputes Act/Rules. Retrenchment is an act on the part of the employer to terminate the services, whereas resignation is an act by the employee/workman to end his services. Therefore, as rightly stated by learned colleagues, in this case, he is not entitled to the retrenchment benefit, except for other due terminal benefits.
Regards,
Vinayak Nagarkar
HR and Employee Relations Consultant
From India, Mumbai
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07 Resignation, Retirement & Terminal Benefits.pdf
Flexi Benefits Plan.doc