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Hi Friends,
A colleague of mine has recently quit the company. He has not been paid for the last 2 months. In the release letter provided , there is a sentence stating that there are no dues pending from the company in terms of salary or perks. HR of the company has said that the pending dues (2 months Salary) will be mentioned in the Full & Final Statement. I have a few doubts that I need advise on :
1. What is the importance of the release letter? is it considered as a legal letter?
2. If the candidate accepts the letter in its current form, does it affect his claim to the pending salary from a legal standpoint?
3. Can HR mention that 'No Dues are Pending' even if there is salary pending? Is it legal for them to do so? if not , what action can be taken?
4. How does the statement impact my friend when he joins another company?
Advise on this is highly appreciated as right now , all employees are feeling insecure regarding this.
Thanks & Regards

From India, Mumbai
Dear friend,
The release letter is for your friend and not for the company. Hence the statement that "no dues pending" implies that the employee owes nothing to the company he served/from the company he is being released from.
Regards,

From India, Madras
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