Payroll point of view:-
If an employee works even for one day, the employer is liable to pay the salary/earnings and the PF has to be deducted from the earnings. Deductions including notice period recovery should be calculated separately.
The best way is Calculate the January Salary and deduct the PF accordingly. Keep the net ON HOLD/WITHHELD. Pay the PF payment.
During full and final settlement, put the notice period recovery as deduction (whatever decided by your management) and add the previously hold salary. You will receive a minus figure as settlement (recovery). Recover it and close the account.
This is the proper way of accounting a Payroll and also statutory compliance.
From India, Chennai
100If an employee works even for one day, the employer is liable to pay the salary/earnings and the PF has to be deducted from the earnings. Deductions including notice period recovery should be calculated separately.
The best way is Calculate the January Salary and deduct the PF accordingly. Keep the net ON HOLD/WITHHELD. Pay the PF payment.
During full and final settlement, put the notice period recovery as deduction (whatever decided by your management) and add the previously hold salary. You will receive a minus figure as settlement (recovery). Recover it and close the account.
This is the proper way of accounting a Payroll and also statutory compliance.
From India, Chennai
Dear Samir,
I want to ask and suggest my view points as below:
1- People join and leave organizations their way is a normal routine thing. People join based on potential/intellectual assets and at same time they bring in some deficiency aiming to make up at new organization. You have not issued appointment letter and before this candidate resigned , does not permit any scope to create / act anything wrong, mischievous and damaging .You should have done your work with integrity and honesty towards company and candidate both.Don't you think that this is dishonest act you want to play as a game which was not permitted neither earlier nor never ever. I fail to understand, why are you thinking about it even ? Who will gain or who is at loss and why you are attempting to jump way from limits of professionalism !!. The problem solving approach here is not only incorrect but its objectionable also on moral and legal grounds both . As against the proposed demand of notice pay , the gentleman is accepting your punishment also. So here is scope and opportunity available to you to correct action..Treat it a normal issue without any intention in mind to harm employee for none of any faults from his side. I doubt, you will earn any credit/respect from superior if he believes in fair and firm formula.
2- Since his Gross salary is Rs.60,000/ month. Please do not make him PF / EPS member . Design his PFable salary in such manner that it becomes more than Rs. 15,000/ and he goes away happily and you stand done and complied with in right manner. There is good scope available to you to exempt from PF coverage .Form 11 is not required and he will be thus in list of exempted members .
Thanks and best regards,
RDS Yadav
From India, Delhi
I want to ask and suggest my view points as below:
1- People join and leave organizations their way is a normal routine thing. People join based on potential/intellectual assets and at same time they bring in some deficiency aiming to make up at new organization. You have not issued appointment letter and before this candidate resigned , does not permit any scope to create / act anything wrong, mischievous and damaging .You should have done your work with integrity and honesty towards company and candidate both.Don't you think that this is dishonest act you want to play as a game which was not permitted neither earlier nor never ever. I fail to understand, why are you thinking about it even ? Who will gain or who is at loss and why you are attempting to jump way from limits of professionalism !!. The problem solving approach here is not only incorrect but its objectionable also on moral and legal grounds both . As against the proposed demand of notice pay , the gentleman is accepting your punishment also. So here is scope and opportunity available to you to correct action..Treat it a normal issue without any intention in mind to harm employee for none of any faults from his side. I doubt, you will earn any credit/respect from superior if he believes in fair and firm formula.
2- Since his Gross salary is Rs.60,000/ month. Please do not make him PF / EPS member . Design his PFable salary in such manner that it becomes more than Rs. 15,000/ and he goes away happily and you stand done and complied with in right manner. There is good scope available to you to exempt from PF coverage .Form 11 is not required and he will be thus in list of exempted members .
Thanks and best regards,
RDS Yadav
From India, Delhi
Dear Seniors,
I have a query with regards to this topic. I have heard that in order to establish an employee employer relation, an appointment letter must be issued and accepted by the employer and employee.Since the appointment letter was not issued is there any legal requirement for the employer to pay the salary and also they do they have any legal right to ask for recovery.
From India, Mumbai
I have a query with regards to this topic. I have heard that in order to establish an employee employer relation, an appointment letter must be issued and accepted by the employer and employee.Since the appointment letter was not issued is there any legal requirement for the employer to pay the salary and also they do they have any legal right to ask for recovery.
From India, Mumbai
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Salary Sheet & PF PT Calculation & Challan Nov 2010.xls