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Resignation on extended retirement

joshcloudz
Member
Mon, 08 Jul 2013 03:48:29 PM  (Last updated: Mon, 15 Jul 2013 09:20:12 AM)

Hi,

I need some advice as per below scenario:-

One of my staff extended her retirement (56th birthday in June 2013) on a contract basis (up til September 2013). Her new pay has been reduced due to this extension effective 1st July 2013. Recently she had a big disagreement with one of the managers and has decided to tender her 1 month notice period as stated in her appointment letter and will render her services up until 27th July 2013. However, she still has 15 days of annual leave and wishes to encash them rather than utilise it. according to the calculation she has provided to the company, she calculated the encashment based on her June pay. 

Which pay rate are we supposed to calculate the encashment? is the formula based on (New or old Pay)/31 days x 15 day (annual leave) or (New or old pay)26 days x 15 days (annual leave)? 

Please advise which is the correct way to do this. thanks!

Josh

KL Siew
Administrator
Tue, 09 Jul 2013 11:07:56 AM

Should be old pay/26 x 15.

joshcloudz
Member
Mon, 15 Jul 2013 09:20:12 AM

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