Labour Laws & Ir
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Rajesh Kumar Dubey
Manager - Hr
Manager - Hr
Desktop Engineer L2
Most of the time it happens that an employee leaves the company without serving proper notice. e.g One takes the salary in the first week of the month and next day he resigns without serving notice.What to do in this case?
5th August 2009 From India, Delhi
One of the sr.employees got the offer of some other company on 20th of June.He didnt resign till he got his salary on 7th July.He served a notice period of 4 days because he might have thoughtthat he has nothing to lose in the company.Inspite of convicing him to stay for 10 days for proper hand over he left in 4days.He had to serve notice of 30 days as per his appointment letter.Now what should i do in this case.
5th August 2009 From India, Delhi
As our seniors said the question is not clear
However please confirm the cadre of the employee (whether workmen category or supervisor)
If he is a supervisor you can refer code of conduct/secrecy agreement and hold the payment due to him .
Tks & Regards
6th August 2009 From India, Hyderabad
I also wish to know what remedy is available to an employee if his contract is terminated by the employer without assigning any reason. The company is silent about full and final payment. What is the time limit for making full and final settlement. As per terms of the contract each side has to give three months notice for terminating the contract. The company is an Indian company working abroad.
6th August 2009 From India, Nasik
This will attract the double employment, which is illegal concept according to the Employment Standing Orders Act. (Is your company is having certified Standing Orders ?) see local state SO Act. You have to take the action according to the rules there in (if the candidate is proved that he joined some where without settlement with the parent company)
7th August 2009 From India, Kakinada
7th August 2009 From India, Madras
Some employers have habit to hold salary with an immediate effect as soon as the employee gives resignation and they keep on hold till F&F, it could be 3-4 months. Now a days some employers ask for notice period for 3 month, is it possible? or is it reasonable ? when they recruit, they ask to join within 15days, how can they ask resigning employee to give 2-3 months notice.
7th August 2009 From India, Mumbai
A lot many people have been asking queries about F&F procedure's after effects. Allow me to explain few common cases that happens at the time of Full and Final of an employee:
- Ideal Case : An employee resigns on a month in advance, serves his 30 days notice period (or as mentioned in his appointment letter) and then on his last day goes to HR, gives Exit Interview, fills all F&F papers and leave for the day. In such cases, normally, employer does not hold his salary/ payment and final payment is made within 3-5 days.
- Case A: If an employee has got a job elsewhere and his new prospective employer is forcing him to join within say 10 days. In that case, this employee will give 7-10 days notice to his co. and forcibly leave the co. to join new one.
In some cases, if the employee is mature enough then that employee may even ask his new prospective employer to buy his notice period. Meaning, the new co. which i hiring him on a short notice, has to bear his notice pay whatsoever, before he joins them. This is a safe way out and happens only in certain senior/ mid level positions.
No company can hold employees F&F payment forever. Yes, it is observed that some companies tend to hold it for long, just in order to frustrate the employee such that he himself stops asking for his money. But if you keep trying the co. shall have to give you your dues.
But this surely doesnt allow you to hop your jobs every year or six months. If you have worked in a co. even for few months, you should have a safe Exit. This way you may get even a single rupee due from your co.
7th August 2009 From India, New Delhi
An Employee is governed by the terms and conditions as mentioned in his appointment Letter and by the Company's Service Rules and Regulations.
Therefore in this case, you would have to check, what are the terms mentioned in the Appointment Letter. Does the Employee pays notice pay in lieu Notice? If yes, then the Company has got the right to recover the same from him.
Secondly, has the Company accepted his resignation letter? If yes, then has the releiving letter issued to him?
If the releiving letter has not been issued to him, the Company can first write to this employee stating that his releiving letter would not be issued untill and unless he pays back to the Company the Notice Pay amount. You can also insert a threat therein that you can contact his new employers, that he(employee) has not been releived from the services of the Company, and would initiate appropriate legal action against him.
But If the Company has issued the releiving letter, then it can only file a suit in the Civil Court for recovery of money through specific performance of contract (the appointment letter is a contract between the employer and the employee)But since the Notice pay amount is too small vis a vis the litigation costs, Company's do not resort to the same.
In case of any further clarification, please do revert,
7th August 2009 From India, Pune
When new month starts you just pay your employees their one months salary. You can hold their provident fund or can deduct an amount equal to their salary from their dues.
Another way of taking preventive action is that you start deducting a fixed amount of money from their salary as a "security".
Your company should hold some of their money equivalent to their salary.
7th August 2009 From Pakistan, Karachi
7th August 2009 From India, Hyderabad
All the suggestions given by you, are illegal according to the Indian Laws.
Kindly note :
- A company CAN NOT HOLD P.F.
- A company can not make any UNAUTHORISED, ILLEGAL DEDUCTION (Re : Payment of Wages Act)
If you are working in India, kindly study the labour laws, (else, you will land yourself and your company in legal trouble), before you call yourself an HR professional.
7th August 2009 From India, Delhi
I would suggest the following
1. Send him a letter stating the inconvenience caused and asking him to pay salary for the remaining notice period. Mark a copy of the letter to his present employer, if you know it. You may decide about actually sending the letter.
2. His application for transfer of PF is to be processed strictly on 'work to rule' basis.
3. Payment of gratuity, if it is due, could be processed very leisurely.
4. If there is any other due like bonus or incentive, deduct the amount and pay only remaining.
5. Finally give legal notice.
6. Send all correspondence to all his known addresses.
These are the things I can immediately think off.
8th August 2009
What I can suggest based on the info you have provided is:
1) Send a letter to the employee through a registered AD informing him that his resignation has not been accepted and that he has to either complete his notice period and a proper handover or pay the salary in lieu of the notice period.
2) If no response with in a week, consult a lawyer and send him a legal notice for the same. Please make sure you have all the docs in place (appointment letter, confirmation letter, etc)
3) If still no response and if you know his current employer, you can write to them about the case (requesting confidentiality) and informing them that he/she has not been officially relieved and that he is on dual employment which is illegal as per the contract.
4) Yet if not response, based on the amount to be recovered, you can plan to file a suite against the employee.
Filing a suite at times is not only for the money, but also to set a precedent for others with in the organization to value their commitment.
Would highly appreciate any inputs or suggestion on this from the forum.
13th August 2009 From India, Mumbai
I have been going through the replies.
What I find is that the prime motive for taking action against him is that he "waited long enough to get his salary and then did not stay even for 10 days and left in 4 days".
How did you find out that he "got the offer of some other company on 20th of June." ?
It is possible that the company had been pressing him for early joining, but he wanted to wait for his salary.
You might say, it is unprofessional and your company may be feeling miffed at. But remember that apart from his salary, he did not take anything along. He gave precedence to his "self-interest" than to honour the 30 days notice.
Please do not be vindicative. An employee is very puny and resource-less, when pitted against the might of a company.
Under such circumstances, good companies tend to be forgiving and ignore such infractions; rather than to act mean and make it a prestige issue to prosecute the ex-employee.
I personally know a case, where the company (a well known good Indian co.) had even written off the IT paid on his behalf, as the relevant documents were not produced subsequently by the ex-employee - simply because the employee had been a good productive employee during his tenure with the company.
Advise your company accordingly, rather than being vindicative (which is counter-productive). Believe me, it makes good business-sense in the long run.
15th August 2009 From India, Delhi
Suddenly one day Administrator softly said (no mails/written) that we are under loss and Parent Company owner does not want to run this company for more and have to stop working from today onwards. And since that day company is closed. And he (Admin Head) will help us to find new job in terms of reference and releaving letter and salary for till date and notice period payment as well. And will provide everything (docs and salary) by next month salary date.
Due to this promise we (10 employees) all haven't raised any issue because next job, releaving letter and reference is more important at that time. But we haven't received salary for the last month we worked (for eg 15th march is our last date of working) we received feb salary, releaving letter and last thing he said in presence of every body that he has nothing in his hand now but he is trying and if CEO of parent co pays him will not make any delay. we have not received till date salary for the month of last month (eg march). Nor notice day salary. In appointent letter it is clearly stated that employer will give 15 and employee have to provide 1 month notice vice versa for non confirmed employee. And one and two month for Confirmend Employee vice versa. We requested to admin head for the confirmation latter for no of times but due to admin is busy with work he avoid our requests. And we are not confirmed can we claim as a confirmed employee.
Because we are not getting our salary we requested him no of times, but no reply we felt cheated. and tried to go to labour court and file a case against employer. Before going court we thought to inform employer for the action we are going to take. They threat us like we will declare India company as bank corrupt and employee will not get their money instead of it we will loose our money on filing a case and hiring a lawyer. Even if employees still want to go against employer, then he as a businessman has enough money to fight for long period and hire good lawyer. After all this i tried to contact Managing director for india and CEO/Director in USA both they said we can not do anything, instead of that CEO wants to file a case against us in USA and in INDIA for non professional work.
Now Admin cheif (retd army cornel) threatning not to go to COURT otherwise he will easily declare me as a naxlist / terrorist and take me into jail. So i left my money. Now when i am requesting my TDS certiicate / form 16 he is not picking my phone but once said he is not interested to talk to me. I shoot a mail to Managing Director one month before. Now today i shoot another mail to everybody for the same and mentioned otherwise i have to go CIT (Commitioner of and ID and rules menttioned).
Still full and final is not done. I am feeling very harrased by this, lost money at least for one month (15 working days and 15 notice period ) and tax certiicate for 18k appox. and after loosing job on month gap for next joining. Instability for future Personal / Car / Home loans. i have all document as proof. and sending appointment letter herewith. Please let me know what can i do now.
31st July 2010 From India, Calcutta
The company has not given me salary of Feb 2009. I have written several communications to the Chairman of the company. No response from them.
What is the remedy if the employer is not paying salary and incentives due to employee inspite of writing to them several times.
What is the time limit to file a case ?
What is the amount of compensation can be claimed for such action.
Kindly guide me
Thanks and regards
26th October 2010 From India, Bangalore
The management has decide to change, and i submit my resignation from the post, but this time employer no pay my leave encashment, my salary, bonus(exgratia) please give me advice what a legal action against employer.
Thanks, i waiting for your reply.
20th August 2012 From India, Delhi
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 who has issued a notice after 18 months?
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?
Please suggest as soon as possible.
24th December 2012 From India, Mumbai
My brother had resigned from his job last year and as per the terms and conditions of his service he had served a 30 days' notice but his full and final settlement has not yet been done. For the first few months he had no clue as to what actions were pending on his part as he always believed that he had submitted all the papers necessary. When he contacted the HR personnel regarding the same he was told that she had not received the required 'papers' and a form was mailed to him which he was supposed to fill in and revert. It's been more than 6 months since he had sent the filled in form but there has been no response from the concerned person(HR). If he calls the HR personnel she wouldn't pick up the phone. His last month's salary was, though, sent to his company account(which had by now turned into a personal one) without any information from the employers and when he went to the bank to withdraw the amount he was told that there would be a deduction as the account is no more covered under the company& bank's terms and conditions. Please guide me regarding the same. Looking forward for a solution soon.
Thanks & Regards
2nd April 2013 From India, Mumbai
#AnonymousIf a staff does not receive a clearnce/ releiving letter from the employer and joins a new firm with dues pending at the previous employer.
Can the current employer be intimated on the same? and what purpose would it serve?
27th November 2013 From India, New Delhi
but now they have deducted all my expenses and giving me 15 days salary. and are not willing to share the deduction details.
please let me know what should i do in this kind of situation. will labour court can help e to solve the issue.
15th March 2014 From India, Jalandhar
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15th March 2014 From India, Pune
i want a structured answer please.
11th August 2014 From India, Delhi
Please explain me the following points
1. Can we hold the salary of any employee in lieu of Notice Period? Is it legal under payment of wages act?
2. Suppose any employee has only salary which is Rs. 5000 for any month to credit and his actual salary is rs. 7000. The said employee leaves the company without serving a month notice. In this case can we hold his 5000 in lieu of notice. Now the total monthly salary of the organisation which was entered in balance sheet Rs. 30 Lacs including the Rs. 5000 amount of that employee. Then, should we have to reverse the Rs. 5000 from the balance sheet? if we do not do so then this amount will come under unclaimed wages and we have to deposit it in labour welfare fund. Please explain me the whole process.
3. Thirdly, if have any unclaimed wages like salary of any employee for a month can we deduct this salary in lieu of notice and save us from the liabilities of unclaimed wages, In this case labour welfafe department will not have any objection. Is this right way.
16th May 2015 From India, New Delhi
I have been employed with a new start up Brand for an year starting from 28th April 2014 and as per my joining letter I was on probation period of six months and had to be confirmed in written after that period. In case, if the written document or a mail has not been sent to employee, the employee shall remain on probation period. Salary on time was always a concern and every month the payment was don by mid of commencing month only. For example salary for October month would get cleared after 15th November only. After 6 months I was not given any confirmation letter and late payment of wages being a major concern, I had resigned from my services on completion of 1 year on 30th April 2015 mentioning my relieving date on 7th May 2015 which was extended to 16th May 2015.
I had recently got married on 21st April 2015 and had some personal & professional reasons as the working culture had not been very professional and I did not find a growth in my learning career. As I had not been confirmed my notice period being 30 days and in case of short notice, deduction of 14 days basic salary was supposed to happen which I had agreed on. But on the last day the Employer unable to find a replacement for designation threats me to cut 2 months notice as per confirmed employee but I had not been given any letter of confirmation during my stay in the company. After too much of arguement both the parties agreed upon deduction of 1 month basic salary as short notice and HR has confirmed same via email.
Since I had not been paid salary of April month & May month I agreed so that I could get my wages as soon as possible. For that reason I agreed upon working for few extra days without being on payroll for the company as a favor for 4 days i.e till 20th May 2015 and handed over the Lap top to the company on 21st May. After regularly checking with HR he confirmed deduction of 30 days basic salary which I agreed as I was in need of money at that time which they promised to pay soon. After waiting for 45 days i receive a call from HR that there is an audit in office and I need to come to office to help in same assuring me the payment of my full and final settlement after this audit. I went to office premises and cleared the same on 27th June 2015 and asked them to clear my payment which they promised to pay withing a week. After 5 days when I had called the HR person on 2nd July 2015, he informs me that now Managing Director wants to have a word with me and thus holding my payment till the time I do not meet him. I tried calling my MD on his number and could speak once when he said was busy and will cal back soon. After that he left for Europe trip for 15 days. Now when I checked with the HR, he comes up with the point that he has been instructed by MD o cut 2 months basic salary and release the payment. After wasting for more than 60 days the Employer is not ready to pay me 1 month salary out of my 1.5 month unpaid salary. What is the legal action I can take against my employer and what is the minimum time of clearing full and final settlement???
20th July 2015 From India, Bangalore
I am working in ESSAR STEEL LTD. in contract (Arti Enterprise) 07/07/2009 to 10/10/2015.Last few month company's condition is bad so company has terminate some contract workers (our including). after 2 and half month company didn't paid my full and final & PF.
24th December 2015 From India, Jalalpur
I wanted clarification regarding EL settlement as i have worked earlier company their we use to calculate On Present Basic salary , present company my senior person is saying me to calculate last year EL on Last Basic & present Year EL on Present Basic so i am unable to make her understanding pls help me with this issue. How solve the issue.
14th November 2017 From India
I had served 2 month notice period in cognizant but Rakesh Mahapatra told me on 24 March by phone your last working day was 23 March 2018.
experience and reliving letter they gave by DTDC courier
Following point are required for full and final settlement by business arts India pvt ltd
1-Now almost 60 days was completed, but still full and final settlement is not cleared by Business arts India pvt Ltd
2-As discussed with Dinesh for flight ticket provided by company relocation from Delhi to Bangalore and still pending from Business arts India pvt Ltd.
3- Form 16 and March Pay slip
23rd May 2018 From India, Chennai