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Ruchi (HR Manager)     10 April 2009

Full and final settlement

Dear Members,

is there any law stating that company has to do the F&F in 30 days or company can take as long as it can!!

your replies are urgently awaited....

regards,

ruchi

 



Learning

 5 Replies

A V Vishal (Advocate)     10 April 2009

Dear Ruchi:

What is F & F payment about, your query is unclear

Ruchi (HR Manager)     10 April 2009

F&F is full and final settlement which includes the pending salary and benefits if any like leaves....

ruchi

Rajneesh Malhotra (Advocate)     10 April 2009

No there is no such law. Suppose the employee has to return some documents, how will the company settle his dues? But yes, it should be done in a reasonable time and it should never seem that the company is trying to harass the employee.

A V Vishal (Advocate)     10 April 2009

Dear Ruchi:

There must be some provision in the labour act to regulate the full and final payment of an employee. The management cannot hold the pay for an unreasonable time except in case where disciplinary action is initiated by the management against the employee. As Rajneesh suggested that the payment should be done within a reasonable time, the question arises what reasonable time limit is, is it 15 days, 30 days or a period longer than that. I advise you to seek the expert's opinion of some lawyer dealing with labour laws.

badrinath (Sr.Manager-human resources)     13 April 2009

there is no law that the company should settle full and final accounts within 30 days.

 however, the standing orders of the company will provide a clause for the period  within  which  the employees final accounts  should be settled. hence, pl. refer  that.


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