Full and Final Settlement
6 months ago
I have recently reigned from my first company and after serving the mandatory notice period, I have finally received the FNF document. After enquiring about the FNF document in which money withhold ( the money the hold from our monthly salary ), they are stating that."The said is only payable when an employee has completed the entire year with us. It is based upon several reviews i.e. department manager, line manager, annual targets etc. It’s clearly outlined in the offer of employment signed by you that “You are entitle to receive performance-based incentive/ bonus at the end of the financial year” which means, though you’re entitled but is only on annual basis. No pro-rata payables are allowed. In payslip is solely for the accounting purpose. I hope this is clear. Additionally, the offer letter mentions a training cost recovery of 5% from your gross CTC. We’re likely to revise the FNF as we need to address this component too." Nowhere it is mentioned that they will deduct the 'withhold money ' if the employees before 1 Year. Also, neither they have mentioned the training period or the training cost nor have they provided any supporting document for this clause.
Please help me what shall I do here as this money is very important for me and I have worked tirelessly to earn it.
As per the Payment of Bonus Act, 1965, an employee is eligible to receive a bonus under the act, on fulfillment of the following criteria: an employee who receives a salary/wage up to Rs. 21,000/- per month (As per Amendment of 2015) and the employee must have worked in the factory or establishment for not less than 30 days in a year. Section 10 of the Act prescribes the minimum bonus(statutory bonus), that is 8.33% of the employee’s Salary/wages, which is the least percent mandatorily to be paid by every establishment or organization covered by the Act, and as per Section 11 of the Act, the maximum amount of bonus shall not exceed, 20% of the salary/wages of the employees. For bonus calculation, only the employee’s Salary/Wages and Dearness allowance are considered. The bonus shall be paid within 8 months from the end of the accounting year, or within a month from the date of enforcement of the Act. So, in view of the above provision of the relevant Act that has an overriding effect on any contract or agreement made in contrary to the provision of the Act shall be infructuous and unenforceable and the eligible employee can claim a statutory bonus once he fulfills the eligibility criteria regardless of their terms of employment. As regards the deduction or recovery of training costs from your gross CTC, it may be noted that in the absence of any specific stipulation in the offer letter Company cannot deduct or realize the same from F & F Settlement dues receivable on your resignation. Apparently, the actions of the Company may be treated as unfair labour practice and accordingly, if you are not holding a position of manager or supervisor in the Company, but a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. serving a legal notice to the Company reach out to the office of the concerned Labour Commissioner to file a complaint against the company over alleged unfair labour practice for redressal of your grievance, and apart, you should file an application u/s.33C(2) of I D Act before the concerned Labour Court claiming your F & F Settlement dues receivable on your resignation from the Company. But, if you are holding the position of manager or supervisor in the Company, you have to file a money suit before the Civil Court for recovery of your salary and bonus from the company.
Firstly, go through your employment contract and offer letter to understand the terms and conditions regarding the withholding of the performance-based incentive or bonus and any training cost recovery. If there is no mention of these deductions, this could work in your favor. If the issue remains unresolved, you can approach the labour court to file a complaint if necessary.
Accountant in a production house
Not paid the April month salary
Salary deduction for not serving notice period
Less Full and final settlement
Already Served 10 Days Out Of 15 Days Notice Period, But Have Still Not Got LWD.
