Full & Final Settlement of Employees - As per Various Labour Laws

During this Covid-19 Many Employees are asked to resign and said that You will receive your FnF(Full and Final) as per company Norms.
Now there are 3 things.

  1. What is the Company Norms and How it is defined? 
  2. When will I receive my payment?
  3. What all components includes in the FnF?

  1. There is no such Company Norms as per Labour Acts.
  2. As per Code of Wages Act, 2019. If employee is separated by any means such as Lay-off, Resignation, Termination, Death, etc. In that case Employer should pay the FnF within 2 working days. 
  3. So if the employee is separated by any reasons. The payment should be released within 2 working days. Or Maximum by 7th of Next month as per Payment of Wages Act. 
  4. Components which includes in Full and Final are as follows. 
  • Salary till date.
  • Marketing or Administrative Expense as per the Offer Letter. Such as Travel reimbursement, mobile allowance, etc as per usage or actual bill.
  • Overtime Allowance -If Applicable 
  • Statutory Bonus -If employee had worked at least 30 days. (As per Bonus Act )
  • Performance Bonus or Incentive -If Applicable. 
  • Gratuity -If Employee has completed the employment of 4yrs & 240 Days.
  • Balance Paid Leave.
  • Notice Period -If terminated or Layoff 

Following are the deduction 
  • Any Statutory Compliances such as PF, ESI, etc.
  • Taxes such as Professional Tax or TDS. 
  • Notice Period can be recovered or waived off depends upon Organisation's Policy. If employee has resigned. 


Kindly give your feedback/suggestions/query in Comment Section below. 

Comments

  1. UnknownMay 11, 2020 at 11:01 PM

    This was very nice and helpful to everyone who has worked with any organisation.

    ReplyDelete

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