Full & final settlement law for a private firm
Sandeep Kumar
(Querist) 13 September 2015
This query is : Resolved
Hi, I was working in a PR firm in Mumbai (Registered under Bombay Shops & Established act) since past 7 years, I resigned from my post in Aug 2015 as company was offering a 50% salary cut for next few months due to losses.
I asked them settle my balance EL & Medical bill reimbursement on my last working day but company is denying it saying Medical reimbursement and EL is admissible only after completion of a year in service, since you are leaving company in middle of the year you are not entitled for Medical & EL reimbursement. They says I had joined company on May 15 and that's I could be eligible for reimbursement only after May 16, 2016.
Also note that we were getting only 21EL and 7CL while I read here in a separate post that according to Bombay Shop & Est. Act employee gets 21EL and 12 other leaves (CL & Seek Leaves) is that true? and if company is not giving seek leave then what action can be taken.
Please suggest what law says.
Kappil Cchandna
(Expert) 13 September 2015
Sir,
Who claims that EL and CL be given only if one year of the service is complete ? Company norms ?
Company cannot supersede the law and make its own rules, rather as a matter of fact you were forced by the company to resign because of the fact they were offering you 50% salary in between your job.
Warm Regards
Kapil Chandna Advocate
9899011450
Sandeep Kumar
(Querist) 13 September 2015
Thanks Sir,
Yes company has sent me a letter in reply to my claiming, saying -"Medical reimbursement and EL is admissible only after completion of a year in service, since you are leaving company in middle of the year you are not entitled for Medical & EL"
They amended this rule sometimes back in their own rule book. I was pretty sure about it and that's sent them a letter immediately asking to settle my EL & Medical and then I got above reply. I have to sent them a reply in a day or two to let them know that people are aware about laws, So please suggest -
1. Is it against laws to not settle balance EL and Medical ?
2. What action can be taken if a company is not allowing any seek leave to its employee while its been registered under Bombay Shops & Est. Act.?
Kumar Doab
(Expert) 13 September 2015
You have posted that:
"company was offering a 50% salary cut for next few months due to losses."
The employee should always record it (audio/visual/witnessed/minuted)!
You could have stated it as reason of resignation in resignation or subsequent communications......................
The HR personnel are having limitation as they are paid by the employer to follow the rule book prepared by employer.
You may escalate to good offices of appointing authority,MD,Chairman.................and cite sections of Bombay Shops & Established act and stake claim to less leave provided for and less paid Leave encashment, Bonus,OT,Medical reimbursement (as per policy of the company), GRATUITY.....................
Maharashtra has various additional enactments e.g. PULP.....................and if good offices also do not provide any relief you may approach:
Inspector appointed under Bombay Shops & Established act
O/o Labor commissioner
Employee's/Trade Unions
Guest
(Expert) 13 September 2015
Mr. Sandeep Kumar,
Why making fuss? Refer the terms of your appointment, as might have been conveyed to you through offer or appointment letter. If you have doubt on those conditions state what were the conditions conveyed to you and ewhen and what amendment they made?
You won't find any solution on your academic problem without appropriate description of the terms & conditions of your appointment.
Kumar Doab
(Expert) 13 September 2015
The company can provide superior benefits but can not inferior benefits as provided for in Bombay Shops & Established Act.
If company has written to you to accept inferior benefits reply in a gentle tone and ask to provide the difference as per the Act.
Rajendra K Goyal
(Expert) 14 September 2015
Agree with the expert PS Dhingra ji.
Kumar Doab
(Expert) 14 September 2015
The company is in loss according to your first post.
If it has not included payment of Gratuity in FnF statement/settlement then you may demand payment of Gratuity and/or submit FormI under proper acknowledgment.
Read Bombay Shops & Established Act and compare with provisions in appointment letter issued to you and so called internal rule book....................and point out variance to good offices and ask them to instruct HR to comply with provision of the Act.
The company can provide superior benefits but can not inferior benefits as provided for in Bombay Shops & Established Act.
If the matter is not resolved by your own efforts seek the counsel and support of Employee's/Trade Unions.
Unions in Maharashtra have traditionally been strong.
Sandeep Kumar
(Querist) 14 September 2015
Thanks Mr. Dhingra and all friends for your kind guidance. Its not fuss, I have simple query -
1. Company (also company size is very small, say 25 employees only) is not ready to pay current year's EL & Medical, so want to know whether it is against law or not? no matter what they have written in appointment letter or in their rule book. We have seen in many cases that honorable court given in the favor of employee against one sided rule book. (its not mentioned in appointment letter though)
2. Second query is - if a company is not providing leaves as per Bombay shops & est. act (what I read in a separate post - 21EL & 12 other leaves i.e. CL & seek leave), can we make a complaint against it? and what action can be taken?
I have gone through Bombay Shops & Est act rule book (sec. 36) but didnt get any clarity as I am not from law field.
I am asking here because I want to revert them first drawing their attention towards laws, ofcourse I want to resolve the trouble free, if remain unresolved then would go for legal help.
Kumar Doab
(Expert) 14 September 2015
1. If you are unable to understand anything or resolve on your own, as already suggested you may approach employee’s/trade unions leaders, able Labor Law Consultant/service Matters lawyer/Law firm.
2. You have read Sec36 only.You may go thru Sec:35,37,38 ……………………………. and compare with provisions in appointment letter issued to you and so called internal rule book....................and point out variance to good offices and ask them to instruct HR to comply with provision of the Act. If good offices also do not provide relief then, as already posted……………. you may submit in writing to Inspector appointed under :
Inspector appointed under Bombay Shops & Established act
O/o Labor commissioner
and also submit to Inspector appointed under Payment of Wages Act
3. Any leave that is not mentioned in the Bombay Shops & Established act for that you may claim as per appointment letter/rule book.
4. You are restricting to EL only.YOu may claim other benefits also e.g. Gratuity.
T. Kalaiselvan, Advocate
(Expert) 21 September 2015
I think all experts have given an elaborate explanation to your query, nothing more to add.
