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LTA And Medical Allowance Not Payable If Employee Leaves Before 1 Year ? - CiteHR

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sharad.
1

Hi everyone,
My employers say that I am not eligible for LTA and Medical allowance if I leave a company before 1 year ?
When I leave the company I will have completed 6 months 10 days. Should I not be eligible for LTA and Medical on a pro-rata basis ? My offer letter stated LTA and MEdical allowance as a part of my CTC. What are the sections which I should cite to my employer to confirm that I am entitled to LTA/Medical and where can I appeal if they don't agree ?
Please reply.
Thanks and Regards,
Sharad

From India, Delhi
Vaishalee Parkhi
174

Hello Sharad,

The eligibility criteria for taking LTA is after confirmation i.e. 6 months after joining. The employer says LTA is payable after 1 year as for LTA you have to take Earned leave / Privilaged leave which gets applicable or credited after completion of 1 year.

But since you are leaving within 1 year and LTA is shown as a part of your CTC, you are eligible to get LTA amount on pro-rata basis in your Full and Final payment.

Regarding Medical, if your medical is being paid upon submission of bills quarterly etc. you can claim Medical of your fulfilled service period; doesn't matter if it is 1 month / 2 months/ 20 days. You will also get this in full and final. Even if you don't produce medical bills, it will be treated taxable but it will be paid.

However, I would advise you to check your appointment letter terms with respect to above. If those are different and you have signed that, I am afraid, you will have to accept your employer's decision.

Regards,

Vaishalee

From India, Pune
sharad.
1

My offer letter says its a part of the CTC.
However my appointment letter says that you will be paid out LTA and medical based on company rules. (There was no mention of what specific is the company rule.) Then now they are saying that they have a company rule of minimum 1 year of completion for LTA/Medical. Can they do that ?

From India, Delhi
Vaishalee Parkhi
174

Dear Sharad,
You can discuss with your employer based on my above suggested points and see what happens. Ask your colleagues about the past employees who left within an year.
All the best!
Regards,
Vaishalee

From India, Pune
sharad.
1

Hi Vaishalee,
Its a very new company with only 2 employees. The person who last left didn't get his LTA as he resigned in 3 months. My probation was of 3 months so I am a confirmed employee.
If the employer maintains that its company rules not to give LTA if employee resigns before an year (which wasn't mentioned in the appointment letter, as it only says LTA based on company rules) can I appeal to some forum saying its unethical not to have disclosed this earlier and there was ambiguity in the appointment letter ?
Thanks and Regards,
Sharad.

From India, Delhi
bunti
8

Hi Sharad
Actually about LTA & Medical Claim is purily under Company Policy What said your Company Policy .If any thing about this is written in appointment letter that will be valid. clarily descuss with your employer.There is no acr for this...
Regards

From India, Velluru
Vaishalee Parkhi
174

Dear Sharad,
Yours is a new company and employee strength is too less. Obviously, your employer will act upon his wishes if HR policies are yet to frame. You can politely pinpoint your employer that company rules are precisely to be known to employees with utmost clarity. If you both are in good terms, he might avail you your benefits and certainly do needful to avoid any ambiguity for future employees.
We hope and pray you get all your due benefits.
Regards,
Vaishalee

From India, Pune
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