Regarding full & final settlement


I recently joined a company as Head HR and this is a query for settlement of full and final settlement in respect of an ex-employee of my present company. The applicant has appealed under section 33C of the Industrial Dispute act 1947 No. XIV OF 1947.

 

My present company is into Transport business and has license under Bombay Shop and establishment act. We have a strength of over 200 employees on payroll from all across the branches.

 

The applicant worked as a Sr Manager HR from Mar 16 to Jan 2017 (11 Months) and was drawing wages of Rs. 52000/- per month. Also, as per the pay slip issued to him his basic is Rs. 20833/- The company has already settled his Full & Final settlement for the last day worked. 

 

Here, I would also like to state that the applicant, while he was working as a Sr Manager-HR has opted for NON deduction of the following :-

 

  1. He did not opt for PF deductions from his CTC structure and was paid additionally accordingly.(12% + 12% of his basic not deducted and paid ACCORDINGLY TO FULL CTC STURCTURE)
  2. He did not opt for Gratutiy deduction from his CTC structure and was paid additionally accordingly. (4.81% of his basic not deducted and paid ACCORDINGLY TO  FULL CTC STRUCTURE)

 

  1. We did not deduct Bonus from his CTC structure since he was already a Sr Manager in the company. But we deduct part of Bonus (8.33%) from other employees whose basic is below 21000/-

 

The applicant has now claimed the following :-

 

Balance 10 days PL amount from March 2016 to Jan 2017 for 10 days

Bonus amount (Period March 2016 to Jan 2017).

 

The company opted for out of court settlement and offered him 10 days PL amount but he did not  agree and wants full settlement. The company has decided to go ahead with the court case . I would request the learned lawyers to please comment and advise me  on the issue on where we stand on the issue if we go ahead with the case and other options available with the company.

 

 

 

 
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