Full and Final settlement notice done but employer has now issued a notice to pay 15000/-
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Full and Final settlement notice done but employer has now issued a notice to pay 15000/-

business12345 Started The Discussion:

Please suggest - All Seniors

The case is now complicated, reason is full and final settlement not done and now past employer has issued a notice.

Brief: When one of my friend has resigned from his company (let named A), then he was supposed to serve a notice period. But since he has to join the next employer immediately, so he has asked his company "A" to deduct his salary as he was unable to serve the notice period. Company A has deducted all his salary and was paid nil amount. Now the company A has send a notice (after 18 months) to pay Rs. 15000/- as full and final settlement.

Now my question is: 1. If my friend refuses to pay the dues then what can happen?
2. What legal actions can be taken against that employee?
3. How much will be the impact of all this on the career?
4. why this company has issued a notice after 18 months? Is there
any time limit?
5. Till now that company has not cleared PF also of this employee. Is this a tool in the hands of management to put
pressure on the employees if they are running out of company?

All seniors please suggest as soon as possible.

Thanks in advance for your valuable replies.

Regards,

Yash

saswatabanerjee - Senior Member
How much notice period was due ? How much salary was deducted ? What is the salary he was getting ? The time limit for civil action is 3 years

HR Hiral Mehta - Contributing Member
Hello Yash,

while mentioning that your friend was not paid salary against notice period not served, was he issued the full 'n' final settlement statement with no due certificate? If yes, the company cannot claim 15000/- after 18 months. You can very well seek advice of a lawyer or even can directly ask the company to justify the reason against which it claims 15000/-.

Your clarity on this & above will seek you more advice.

Quote:
Originally Posted by saswatabanerjee View Post
How much notice period was due ?
How much salary was deducted ?
What is the salary he was getting ?

The time limit for civil action is 3 years



Dear Sir,
for clarification :
1. 2 month notice period was there.
2. Full salary was deducted and all the no dues etc etc were cleared, and all amount is taken by the company.
3. About 18 thousand was his salary.

Quote:
Originally Posted by HR Hiral Mehta View Post
Hello Yash,

while mentioning that your friend was not paid salary against notice period not served, was he issued the full 'n' final settlement statement with no due certificate? If yes, the company cannot claim 15000/- after 18 months. You can very well seek advice of a lawyer or even can directly ask the company to justify the reason against which it claims 15000/-.

Your clarity on this & above will seek you more advice.
Thanks Hiral,

But I am seeking more clarification, like:
1. His notice period was 2 months, but as he has to join his new company immediately, so has not served notice. All his dues are taken by the company, and he was not paid a single penny. If he is unable to pay 15000 then what can happen on him.

Thanks,
yash

saswatabanerjee - Senior Member
Dear Yash

Your friend was to serve notice of 2 months
That means his notice pay in lieu of notice period would be 30,000

He left without notice
The company did not pay him his salary of the last month or a part of that month.
Even if it was a full month, it would be only 15000.
The balance is payable to the company by him.
The company is in full right to recover that from him.

The statute of limitation for civil liability is 3 years, so they can definately file a cad against him. He will have to pay the amount with interest and the lawyers fees. Since he has been sent the legal notice, the company is serious about it. I find it difficult to believe a company will it in efforts for 15000. There must be some part of the story younhave not told us

saswatabanerjee - Senior Member
As for the pf part, there are many other cases of pf not cleared which have been discussed on the forum. Search and you will get details of what yu can do about it

LAWANDE RAMESH - Contributing Member
Has he signed full and final settlement papers by signing ''no demand certificate"? At that time has employer noticed him regarding dues of remaining amount? If he signed f & f papers and employer had not noticed dues of reaming amount, the employee has no any liabilities to pay the money.

HR Hiral Mehta - Contributing Member
Quote:
Originally Posted by business12345 View Post
Thanks Hiral,

But I am seeking more clarification, like:
1. His notice period was 2 months, but as he has to join his new company immediately, so has not served notice. All his dues are taken by the company, and he was not paid a single penny. If he is unable to pay 15000 then what can happen on him.

Thanks,
yash
Yash,

You did not get the point. Let me explain it again. Was he issued a NDC &/or F'n'F statement while leaving the office with experience & relieving letter?? Pl answer this.

If his salary is 18000/-, he is liable to pay 36000/- against 2 months notice. In that case if the company was not able to adjust the full amount against the last month salary that he worked, the balance needs to be paid.

Before sending the legal notice, company would have made efforts to convince the employee in question to pay the balance, failure of which has lead to such legal notice. In that case if denies to pay the due amount he might have to face legal consequences.

B K BHATIA - Contributing Member
If the employee has collected a 'Relieving Letter (mentioning that no dues are outstanding from him)' , the company can not issue a legal notice.

But the details mentioned above indicate that the employee suddenly vanished from the company assuming that his one month salary which the company was to pay to him will suffice in lieu of the notice period of 2 months. In my opinion, the company is justified in sending a legal notice to recover the balance amount of Rs 15000/-.

It is to be noted while examining this case that the company possibly wants to convey to other employee that they are bound by the employment contract once they have accepted a job offer. They can't take the company for a ride by quitting without notice. These days there are plenty of people who exit suddenly for personal benefits without realizing how much the organization suffers. The action initiated by this company needs to be repeated by all affected companies to make people realize that employment is a contract & both parties (employer & the employee) are bound by its terms and conditions.

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