used to compute the final settlement
salary including all (leave travel) allowances;
of salary (calculation – number of days for which salary is to be paid
multiplied by the gross salary divided by 26);
for unused leaves (calculation – number of days of unused leaves multiplied by
gross salary divided by 26);
(if the employee worked for more than 4 years and 240 days);
(minimum 6 months of service with the current employer alongwith 10 years of
including profession tax, provident fund, income tax.
Settlement process should
commence atleast by the last working day of the employer because it would take
around 30-45 days in the crediting of amount.
For gratuity, it may take upto 30
days alongwith bonus according to the specified year.
basic steps to go for settlement
all the formalities and clearances from all the departments (as per company policy);
a copy of all such clearances;
dues are still not credited, write to the HR department;
they do not respond in a few days, write to the HR manager;
still no response, forward the mail to the CEO and other top management people
of the company;
resort is the suit for money recovery under service law. Talk to an advocate.
of the Letter to HR
letter should be addressed to HR alongwith the company name.
the subject “Full & Final
Settlement of Dues”.
that you have not received the final salary dues and allowances and request for the same.
with regards, don’t forget to mention your name and address.
Things to Remember
number “26” refers to the paid days in a month;
show the 10 years of pensionable service, provide a scheme certificate after
retirement (58 years of age);
Illegal termination of employment will definitely
award you a lot of money. So if the termination notice was not on time or
compensation is not adequate, you can claim all of them;
of illegal termination would also depend upon the terms and conditions of the employment contract.