LTA Rule and Loss Of Pay Rules

Chandrashekhar (Consultant) (30 Points)

18 May 2010  

Hi,
I was working with the IT company in Bangalore (28th -June-2008 to 10-Feb-2010).
As per the offer letter for LTA  and Probation period following was mentioned.

==========================================================

Dear Chandrashekhar,

We have the pleasure to appoint you as a member of the PeopleSoft Management Team on the following terms
and conditions:

Compensation:
==============
A. Basic : Rs xxxxx.00 per month
HRA (40% of the Basic) : Rs xxxxx.00 per month
Special Allowance : Rs xxxxx.00 per month
Conveyance Allowance : Rs xxx.00 per month

B. Re-imbursements - Official : Rs xxxxx.00 per month
1. Mobile and Residence Phone : Rs xxxx.00 per month
2. Car Petrol and Maintenance : Rs xxxx.00 per month
3. Sodex Coupons : Rs xxxx.00 per month

C. Medical : Rs xxxxx.00 per annum

D. LTA : Rs 49,000.00 per annum

E. Contribution to Provident Fund : Rs xxxx.00 per annum

Total Annual Package : Rs xxxxxx.00

No other amenities / allowances etc. shall be permissible, unless specified by written order.

LTA will be paid only on completion of One Year of service.
LTA and other re-imbursements (B) will be paid against submission of Bills/Receipts.

2. Probation:
You will be on probation for a period of six months from the date of joining duty. This period of probation
will be liable to such extension (s) as the Management may deem fit in its sole discretion unless an
order in writing confirming your services given and accepted by you, you will not be deemed to have
been made permanent. But if the Management is not satisfied with your work, conduct, discipline etc.
your service shall be liable to termination without any notice at any time without assigning any reason
during or/on completion of the initial or extended probationary period.

3. Notice Period:
This appointment is subject to termination either by company or by you by giving one month’s notice or
payment of salary in lieu thereof without assignment of any reason on either side. If relocation has been
allocated to you, you will be required to remit back to the company the relocation amount if you decide
to leave the company in less than a year after commencing employment. For the purpose of notice
period the payment of salary means only basic salary, excluding all other perquisites/benefits
whatsoever.

Wishing you all the best.
Yours faithfully,
for XYZ PVT LTD
<Name of HR Person>
Human Resources Coordinator
XYZ PVT LTD
____________________________________________________________________
I have read the Appointment Letter and Employee Agreement carefully and accept all the terms of
appointment and general rules and regulations mentioned. I am signing below as token of my
acceptance for your offer.
Signature : __________________
Date of joining : June 30, 2008
Date of Birth : __________________

==========================================================

My queries are as following.
A] It's regarding LTA:
---------------------------------
After completion of 1 year (that is on 29th June 2009), I got rupees 49,000.00 LTA in the salary of June 2009. (I did not claimed any LTA saying that I had traved for so and so period, so naturally as per rule tax would have deducted from the LTA amt).
Now when I left the company on 10-Feb-2010, after that in the full and final settlement amount I did not find any LTA amt. credited for me, so naturally I asked to the company that I have not received it for the period 30th-June-2010 to 10-Feb-2010 (that is for 7 months 11 days). But here my previous company is saying that we do not pay LTA for those employees who leaves earlier / we pay it every after completion of 1 year cycle.
As per the offer letter there is no rule or clause that gives weightage to the company wording.
Can you please tell me that if company is saying like that then does it make any sense?
As I know I am eligible to get it (LTA). If company does not pay then what kind of action(s) I should do to recover my LTA amount.
Can I take it to Ministry of Labor Affairs / file a case by sending legal notice?


B] It's regarding LOP (Loss of Pay):
---------------------------------------------------
In the full and final settlement document there was a column of LOP in Days (Loss of Pay) and company has deducted my 18,033.00 for 5 days.
When I asked them then they said since you were not confirmed in the company we are deducting it under company rule.
I informed them that all my leaves are as per the company rule and under the limit said by company and I have completed 1 month of notice period also.
They said it is in the employees hand book given and as per that we are deducting it. (I have no access to find any details of employee hand book).
As per the offer letter there was no such rule stating that if an employee is on probation or if it is extended then in the mid time if an employee resigns then company shall deduct amount on LOP ?
When I completed 6 months company did not told me that my probation has been extended. When I asked for confirmation letter they just did not said any thing and hence I do not have any letter for confirmation also.
I know that company took the advantage of recession by not giving confirmation to me and now after leaving the company they are deducting big amounts by giving such reasons.
I have requested so many time to them by sending email and over the phone to pay LOP amount.
Can you please tell me what is the correct. ?
What I should do to recover my LOP amount.
Can I take it to Ministry of Labor Affairs / file a case by sending legal notice?

I see a loss of around 49,000.00 (LTA + LOP amounts) without any reason and I really can't afford it.

Is there any rule stating that company has to pay LAT even if an employee do not produce any LTA bills / do not take any leaves on LTA section.

Is there any rule, if company puts an employee for probation on a very long term (in my case 20 months) and now taking advantage on probation period and deducting employee leaves saying LOP. Can an employee fight for it under some labor laws?

Many thanks for reading this.

Kindly guide me.

Your sincerely,
Chandrashekhar