hello all,
I have joined a company recently where i need to prepare MIS, so i just want to know what all things are included in F&F. Should i include the PF and ESI in this as the employee has left or something else is also included in it. Pls guide me on this. Its really urgent.
Regards,
Suhrita
From India, Pune
4I have joined a company recently where i need to prepare MIS, so i just want to know what all things are included in F&F. Should i include the PF and ESI in this as the employee has left or something else is also included in it. Pls guide me on this. Its really urgent.
Regards,
Suhrita
From India, Pune
Hi,
F & F settlement report is a final settlement done by the organization for the person leaving. So it will consider all the dues which is applicable to pay to him.
For Ex-
1) Salary
2) Gratuity , if applicable.
3) Leave Enacashment
4) LTA and Medical if applicable.
5) PF, ESI deduction
So it has got very vital important as per as F & F report is concern.
Hope above reply will solve your problem.
Thanks,
Amit Shah
From India, Mumbai
F & F settlement report is a final settlement done by the organization for the person leaving. So it will consider all the dues which is applicable to pay to him.
For Ex-
1) Salary
2) Gratuity , if applicable.
3) Leave Enacashment
4) LTA and Medical if applicable.
5) PF, ESI deduction
So it has got very vital important as per as F & F report is concern.
Hope above reply will solve your problem.
Thanks,
Amit Shah
From India, Mumbai
Ya Amit is absoultey right, you have mentioned all these things on the letter while doing any full and final settlement
From India, Gurgaon
From India, Gurgaon
Hi,
Along with the list which Amit has mentioned I would like to add when F & F is done the tax liability should also be looked into. Necessary Investment Proofs should be taken so that accurate tax liability can be arrived at and same can be deducted in the F & f settlement.
Cheers,
Harshad
From India, Mumbai
Along with the list which Amit has mentioned I would like to add when F & F is done the tax liability should also be looked into. Necessary Investment Proofs should be taken so that accurate tax liability can be arrived at and same can be deducted in the F & f settlement.
Cheers,
Harshad
From India, Mumbai
i would like to add one more point to the F & F i.e. Signatures of No dues from the IT / Finance / Reporting Manager / HR department heads should also be included.
From India, New Delhi
From India, New Delhi
thank you amit for the information. STill i have a query on this, the PF and the ESI is handled by an agency hired by our company as there was no HR earlier, so all who leave the company are direclty given the agencies number for contacting. So i cannot put anything in the F&F can I?
From India, Pune
From India, Pune
Hi, For PF you need to get the Form 10 C and form 19 filled by the employee and submit it to PF dept. nothing to be done with ESIC. Cheers, Harshad
From India, Mumbai
From India, Mumbai
withdrawing the PF is entirely a differnet process.. It has nothing to do with F & F. In F & F we only show the details of our contribution for that particular month.
Dont confuse with withdrawal of PF. Withdrawal of PF can be started only after 2 months from the date of employee leaves the service.
F & F is done at the time of employee leaving the service.
From India, New Delhi
Dont confuse with withdrawal of PF. Withdrawal of PF can be started only after 2 months from the date of employee leaves the service.
F & F is done at the time of employee leaving the service.
From India, New Delhi
It should also cover: Loan Balance: Canteen Charges: PF Deduction ESIC Deduction: Advance (Tour & Other) Notice Salary if any (+/-) Any Other Deduction:
From India, Coimbatore
From India, Coimbatore
Hello Suhrita,
Earlier this question was raised by Prativa in June,07 at that time I submitted my points, now I m again forwarding those points for your reference.
While doing full and final settlement followings steps should be taken.
1. Check his/ her appoint letter for notice period clause ( Level wise may differ ).
2. Then when to relieve him.
3. Whether to releve by adjusting leave ( PL) balance towards his notice period or not ( in some companies they encash the leave balance and recover full notice period, which is actually not good practice )
4. Then check his leave balance - whether he taken extra leaves or not, if yes then recover through f&F. Calculate his PL leaves for the period he worked during the current year.
5. Then check what will be his salary for the current month - if there is no enough leave balance for recovering NP then you can adjust his net salary towards NP.
6. Always calculate amount of Notice period on Gross payment for the month ( Basic+ other allowances which are paid in salary. )
7.Then check whether there is any pending amounts like LTA/ Medical and also check whether by any default you paid him extra. Because some companies pays LTA/ Medical in advance, so in such case you have to deduct the amount or to pay as the case may be.
8.Then check total no years of his service for calculating Gratuity. You have to pay him only if he completed 5 years service in your company.( for this clause pls. check Gratuity Act). for this formula is (Last Basic+ DA / 26 days * 15 days )* no of yrs. completed.
9. You have to calculate his Bonus amount. For payment of Bonus there are two options- you can pay him bonus in his full and final or you can pay him bonus while Diwali time or there is one clause in Bonus act by which you can pay bonus to the ex- employees within Eight months from the date on which you paid to your current employees after taking such application from them.
This is really important procedure kindly do f&f by taking all care.
Hope this will help you. If you want any further clarification or any format then kindly mail me on below address.
With Regards
Kedar
From India, Pune
Earlier this question was raised by Prativa in June,07 at that time I submitted my points, now I m again forwarding those points for your reference.
While doing full and final settlement followings steps should be taken.
1. Check his/ her appoint letter for notice period clause ( Level wise may differ ).
2. Then when to relieve him.
3. Whether to releve by adjusting leave ( PL) balance towards his notice period or not ( in some companies they encash the leave balance and recover full notice period, which is actually not good practice )
4. Then check his leave balance - whether he taken extra leaves or not, if yes then recover through f&F. Calculate his PL leaves for the period he worked during the current year.
5. Then check what will be his salary for the current month - if there is no enough leave balance for recovering NP then you can adjust his net salary towards NP.
6. Always calculate amount of Notice period on Gross payment for the month ( Basic+ other allowances which are paid in salary. )
7.Then check whether there is any pending amounts like LTA/ Medical and also check whether by any default you paid him extra. Because some companies pays LTA/ Medical in advance, so in such case you have to deduct the amount or to pay as the case may be.
8.Then check total no years of his service for calculating Gratuity. You have to pay him only if he completed 5 years service in your company.( for this clause pls. check Gratuity Act). for this formula is (Last Basic+ DA / 26 days * 15 days )* no of yrs. completed.
9. You have to calculate his Bonus amount. For payment of Bonus there are two options- you can pay him bonus in his full and final or you can pay him bonus while Diwali time or there is one clause in Bonus act by which you can pay bonus to the ex- employees within Eight months from the date on which you paid to your current employees after taking such application from them.
This is really important procedure kindly do f&f by taking all care.
Hope this will help you. If you want any further clarification or any format then kindly mail me on below address.
With Regards
Kedar
From India, Pune
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