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My name is Bijal Shah, and I used to work for a call center earlier. I resigned from my services without giving 2 months' notice. Below are a few questions that I need clarification on:

F&F Letter and Notice Recovery

1) The company has sent me the F&F letter within 30 days of my resignation.

a) They have calculated the amount recoverable on gross salary. What I would like to know is, is the notice recovered on basic or gross?

When I had asked this question in my exit interview, they did not say anything and mentioned that when I receive the F&F letter, it would specify gross or net or basic.

I have read the letter of appointment, and it states: "Your payment in lieu will be at the sole discretion of the company."

b) They have asked me to pay the amount within 7 calendar days from the receipt of the letter, or else 12% interest per annum will be charged.

c) The HR themselves are not aware of the policies and procedures as mentioned above.

Can I dispute the amount and not pay until clarification is received?

Thank you.

From India, Mumbai
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This is a critical situation. When anyone joins a new company, they have to read the rules of the company written in the appointment letter, which have an almost binding effect. Secondly, when a company has its own standing orders relating to disciplinary rules, there is usually no challenge.

Now, regarding your query, you mentioned that your appointment letter states that your payment in lieu will be at the sole discretion of the company, and you accepted this condition when joining the duties. Therefore, you have to remain quiet on the subject.

As far as the salary is concerned, payment in lieu of notice shall be based on gross pay and not just basic pay. The sentence is self-explanatory as it does not specify basic pay. However, you can discuss with the company the possibility of not recovering the notice pay and under what circumstances you may leave the services. They may listen to you, and the result could be in your favor.

Regards,
Kiran Kale

From India, Kolhapur
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I spoke with two colleagues of mine who left the organization in August and December of 2011. The one who left in August has not received the F&F letter, and the second one did. Both of them left the company with just one day's notice and had to pay 59 days for recovery.

They received the F&F on their basic salary and not on the gross amount, as I have been charged. The company's policy had changed in 2011, stating that the notice period would be two months instead of one. I am unable to understand why they have been charged on the basic amount, and I on the gross. Can I dispute this?

When I spoke to HRSC (HR support team), they said that I need to send an email to the mentioned ID as they cannot provide support over the phone, and they will get back to me. It has been over three days, and I have not received a response. Therefore, I sent them another email stating that I am disputing the settlement amount, and due to the delay from their end, I should not be charged interest.

Furthermore, I would like to know, even if I take time to clear the settlement amount, can they block my PF and not release it?

How can I further dispute this with the organization?

Please advise.

Thanks and Regards,

Bijal Shah

From India, Mumbai
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You can raise a dispute before the government labor authorities of your state. Secondly, as far as PF is concerned, they cannot stop your PF as you can transfer the same by filling out Form 13 in the new organization where you are going to join, and there is no need to have the signatures of the previous employer. In the event that you shall not join any company, even then your previous employer cannot stop PF. You can fill out Form 19 and submit it directly to the PF regional office along with your explanation, mentioning the real story.

Regards,
KIRAN KALE

From India, Kolhapur
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Sorry for all the trouble; my colleagues shared the wrong information with me. I checked their settlement letters today, and they have been charged on gross salary. I guess it's a loss for me.

Major Concerns

1) I left the organization because of my immediate manager.

2) After I resigned and gave feedback, she had a meeting with the team where all shared the same feedback with HR.

3) They did not respond to my earlier email; hence, I called the HR support team today, and they replied to the email stating that the settlement will be on gross.

4) The new organization was supposed to pay my settlement and said that the recovery is always on net. Therefore, they can only pay 2 months' basic and HRA, which leaves me paying more than 35k that I cannot afford.

My father is disabled and at home. My family depends on my earnings, and I also have a home loan to pay.

I cannot afford to pay so much. Furthermore, the company is well aware of my father's and my house condition but still not ready to help.

Is there an alternate option available?

Thanks, at least a sigh of relief that they cannot stop my PF money, and I can claim it as well.

Please advise.

Thanks & Regards,

Bijal Shah

From India, Mumbai
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