Employee seeking annual variable on pro-data basis
9 months ago
I am an employer and had to layoff few employees due to very unfavorable business conditions. One of my employee who was laid off came back after a month asking that his FNF should include variable and retention as it was the company which decided to lay him off and not he himself. What should I do as it would be unfair to pay him?
FnF settlement refers to the process of calculating various dues payable to an employee who has resigned, retired, or been removed from an organization. It does not only include the calculations as per the salary drawn till the last working day but also deductions or additional earnings.
Anonymous
Replied 9 months ago
Agree. My question is, we had to remove him in about 9 months due to which we feel he is not eligible for annual retention and annual variable. But he says he needs annual variable to be calculated for 9 months because we decided to remove him. Annual variable is an annual component and will it be fair to pay it based on the number of months? Thank you for your kind reply.
According to Section 25 C of the Industrial Disputes Act, 1947, a workman who is laid off is entitled to compensation equivalent to 50 percent of the total basic wages and dearness allowance for the period of lay-off. Further, in the context, it is to be noted that If the employer fails to apply for permission to layoff as per the provision of Sec.25M of the Act, or if the application is refused by the appropriate authority/ government and the workmen are still laid off, such lay-off will be considered illegal. The employer is obligated to provide all the benefits to the workman in the same way as if the workman had not been laid off. You may consult with an Advocate practicing Industrial Disputes for guidance and steps.
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