Final Settlement to Employees - Reg.

This query is : Resolved

RamaKrishnan (Querist)
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16 August 2007 with reference to the Bombay Chartered Accountants Society's website (www.bcasonline.org);
"The auditor should report if the final settlement to employees is not made within 30 days".

I brought to the attention of my auditor (As i'm the internal audit assistant), he is asking me that is there any legal view to settle within 30 days to employees?.

Can anyone help?

CA Manish Iyer

CA Manish Iyer (Expert)
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17 August 2007 What is to be settled? dont give references. write ur query fully

RamaKrishnan

RamaKrishnan (Querist)
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19 August 2007 Dear Expert,

If an employee wants to relieve from the job, his all emoluments (including arrears of salary; leave encashment; Over-time wages; bonus etc...) has been taken in to consideration immediately.

If he has given shortfall of notice then the company has to recover the dues.

After all taking in to consideration, suppose the company needs to pay, the payment should be made within 30 days from the date of his reliving. Unless the Auditor should report the fact.

Give your opinion / suggestion/ Recommendation / Conclusion etc...

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KAAPIL

KAAPIL (Expert)
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02 November 2007 Company if liable to pay or else it will remain as Current Liabilites. Auditor does not come into the internal matters of the management as sometimes there are disputes. If gravity of dispute is high, Auditor may recognize Contingent Liability.

Ravikumar.G

Ravikumar.G (Expert)
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09 November 2007 As per Labour act if there is any liability arises for their emouluments the same should be deposited into the bank in separate account.