This is the email from the company:
HR dues clearance of Rs. 549126.00 is outstanding, please transfer the amount using the details below.
If there is no response or payment done within 2 working days, case will be closed for full and final settlement, which could take within 30 days to complete & letters will be released afterward, provided the due amount has been fully recovered, resulting in a positive FnF.
My question is
1) Should I wait to pay buyout till f n f recovery or opt to pay immediately and separately where f n f will only show what company needs to give me?
2) Will I get an email of f n f statement after recovery asking me to pay remaining or will I get only after payment of buyout?
3) Will my gross (before taxes) or net (after taxes) salary for the month till dec 19 be deducted from buyout for recovery?
4) Will I save more if I do the f n f recovery method?
I asked these questions to exit team and they did not respond and I have by today 6pm to pay the buyout so answering the above questions will help me take an informed decision.
Background:
I received new offer on 12 dec and company was willing to bear buyout expense. I emailed HR immediately on 12th for LWD of 19th but they came back on 16th and said it can take upto week for business approvals. I kept pushing them as new company wanted me to join asap by 22nd dec.
HR gave 2 options If I needed early release i had to buyout but they said due to medical proof submitted I could serve 1 month notice and 2 months will be compensated by them. I had to go for first option as my company was ready to bear it. I kept asking them the amount and how it is calculated. All the HR said was “It will be a pinch to my pocket and finance will reach back to me on the details and they are not sure”.
New company wanted details on the buyout amount as they need to get approval and process the amount and it should be done before joining. Despite multiple pings, emails on the amount and any contacts to reach out to all they asked me to do was wait for finance.
They get approval on 19th 3 pm and ask me to pack up and I kept asking them for the buyout amount and they said finance will get back. New company sent joining on 22nd.
The above email came on 22nd dec after LWD. New company is shocked as they assumed it to be on basic which is challenge for approval process. They asked to try negotiate and get back with breakup. I tried to reason on medical grounds to relax it and hr said they gave the options but I chose buyout so they can’t do anything and they also did not give breakup but only sent a generic formula without substituting my compensation values based on gross and asking me to pay in 2 days.
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HR dues clearance of Rs. 549126.00 is outstanding, please transfer the amount using the details below.
If there is no response or payment done within 2 working days, case will be closed for full and final settlement, which could take within 30 days to complete & letters will be released afterward, provided the due amount has been fully recovered, resulting in a positive FnF.
My question is
1) Should I wait to pay buyout till f n f recovery or opt to pay immediately and separately where f n f will only show what company needs to give me?
2) Will I get an email of f n f statement after recovery asking me to pay remaining or will I get only after payment of buyout?
3) Will my gross (before taxes) or net (after taxes) salary for the month till dec 19 be deducted from buyout for recovery?
4) Will I save more if I do the f n f recovery method?
I asked these questions to exit team and they did not respond and I have by today 6pm to pay the buyout so answering the above questions will help me take an informed decision.
Background:
I received new offer on 12 dec and company was willing to bear buyout expense. I emailed HR immediately on 12th for LWD of 19th but they came back on 16th and said it can take upto week for business approvals. I kept pushing them as new company wanted me to join asap by 22nd dec.
HR gave 2 options If I needed early release i had to buyout but they said due to medical proof submitted I could serve 1 month notice and 2 months will be compensated by them. I had to go for first option as my company was ready to bear it. I kept asking them the amount and how it is calculated. All the HR said was “It will be a pinch to my pocket and finance will reach back to me on the details and they are not sure”.
New company wanted details on the buyout amount as they need to get approval and process the amount and it should be done before joining. Despite multiple pings, emails on the amount and any contacts to reach out to all they asked me to do was wait for finance.
They get approval on 19th 3 pm and ask me to pack up and I kept asking them for the buyout amount and they said finance will get back. New company sent joining on 22nd.
The above email came on 22nd dec after LWD. New company is shocked as they assumed it to be on basic which is challenge for approval process. They asked to try negotiate and get back with breakup. I tried to reason on medical grounds to relax it and hr said they gave the options but I chose buyout so they can’t do anything and they also did not give breakup but only sent a generic formula without substituting my compensation values based on gross and asking me to pay in 2 days.
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Your situation is quite complex and requires careful consideration of several factors.
1) Whether to pay the buyout immediately or wait for the Full and Final (FnF) recovery depends on your financial situation and the terms of your new employment. If your new employer is ready to bear the buyout cost and needs you to join immediately, it might be beneficial to pay the buyout immediately. However, if you can afford to wait for the FnF recovery, it might be more beneficial as the company will only show what they need to give you.
2) The timing of the FnF statement's receipt can vary from company to company. Some companies may send the FnF statement after the recovery process, asking you to pay the remaining amount. Others may send it only after the buyout payment has been made. It would be best to clarify this with your HR department.
3) Whether your gross or net salary will be deducted from the buyout for recovery also depends on your company's policies. Some companies may deduct the gross salary, while others may deduct the net salary. Again, it would be best to clarify this with your HR department.
4) Whether you will save more by opting for the FnF recovery method depends on the specific terms of your employment contract and the policies of your company. It would be best to consult with a labor law expert or a financial advisor to understand the potential financial implications of each option.
In conclusion, it's crucial to communicate effectively with your HR department to understand the specific terms and conditions related to your buyout and FnF recovery. If they are not responsive, consider seeking legal advice to understand your rights and obligations better.
From India, Gurugram
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1351) Whether to pay the buyout immediately or wait for the Full and Final (FnF) recovery depends on your financial situation and the terms of your new employment. If your new employer is ready to bear the buyout cost and needs you to join immediately, it might be beneficial to pay the buyout immediately. However, if you can afford to wait for the FnF recovery, it might be more beneficial as the company will only show what they need to give you.
2) The timing of the FnF statement's receipt can vary from company to company. Some companies may send the FnF statement after the recovery process, asking you to pay the remaining amount. Others may send it only after the buyout payment has been made. It would be best to clarify this with your HR department.
3) Whether your gross or net salary will be deducted from the buyout for recovery also depends on your company's policies. Some companies may deduct the gross salary, while others may deduct the net salary. Again, it would be best to clarify this with your HR department.
4) Whether you will save more by opting for the FnF recovery method depends on the specific terms of your employment contract and the policies of your company. It would be best to consult with a labor law expert or a financial advisor to understand the potential financial implications of each option.
In conclusion, it's crucial to communicate effectively with your HR department to understand the specific terms and conditions related to your buyout and FnF recovery. If they are not responsive, consider seeking legal advice to understand your rights and obligations better.
From India, Gurugram
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Full & Final Payment.xls
Clearance Sheet for Full & Final Settlement.doc