Can company stop the full and final settlement of an employee, whatever the reason? - CiteHR
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Can company stop the full and final settlement of an employee, whatever the reason. Can that employee take legal action against that company. Pls. Clarify
Hi,
I would suggest you to meet your boss, and say politely, i need my full & final settlement draft copy, Since My new Org asking for it.You are the right person and having responsible to ask them. I hope this will work out for you.....
If Company not giving you your full and Final.. you can write a letter to you HR- Manager regarding your full and final.. I thing it will be work... Company can not stop your full and final... you can take help of Labour department of your area...

Yes company can stop full and final settlement of an employee but "only for specific period not forever"
They can stop the full & final settlement in following case (For specific period only)
If the employee has not followed exit proceidure properly (i.e handing over etc.)
I beleive that any despute can be sorted out by proper communication if both the parties desire to. but still if you want to go to the legal one then you can approach to civil court.
My experience says that employee should never do this. it has so many complications for future,
Arun J.

In case if you not settled your dues to company, Advances pending, notice period not paid by employee in such cases normally Full and final settlements will be held till clearance. S B Ramesh
yes co can make full and final settlement of account and the employee has full rights to take action against that co as we are suffering from such a long time
As per Act, PF dues can not be withheld.An amount equivalent to gratuity can be withheld in the circumstances where the employee has not vacated the company accommodation,or certain dues to the company is outstanding and the employee has to produce no dues certificates from the concerned departments.Encashment of leave to the credit of an employee may also be refused depending on the nature of separation,i.e,retirement,resignation or dismissal., and prevailing rules.
Company can stop the full and final settlement for certain reasons or against recovery of any dues pending, but can not stop the statutory
Employee can take legal action against that company if he/she has valid reason to justify that the employer has stopped the Full and Final settlement for no reason but purely harrassment.
Last but not the least it is not adviceable to jump into legal aids without trying to sort out the matter whatsoever across the table.

Friends
I agree with Ramesh. A company is well within its legal rights to withhold, not only the Full and Final settlement, but also the relieving letter if:-
a) Your Appointment letter specifies a notice period or pay in lieu and you do not comply with the same.
b) You have company’s property (like mobile. Laptop, vehicle, even, for that matter, a calculator) which have not been returned.
c) Company’s Data entrusted to the employee but not handed over to the company’s Rep.
d) If any enquiry or disciplinary action is pending against the employee.
Munshi

Munshi has summed it well. My compliments to him.
F & F settlement can be done only if an employee produces to the HR a clearance (No dues) certificate from all departments. There is a tendency amongst the misinformed young employees of today to assume that they need not be worried about rules, policies & HR processes of the organization. And thus they submit their resignations & move off without its acceptance and without handing over their job responsibilities/ tools/ equipment etc...Often they quit even without clearing the company loans/ advances. They ought to know that mere submission of resignation carries no meaning & they can be deemed to be absent/ absconding if they do not take clearance from the company. In such cases, it is implied, that the Full & Final settlement can not be done.
Let this be a wake up call for the defaulters since companies are legally justified in not doing the F & F settlement in such cases.

Stopping the full and final settlement of account of an employee without reason is an unethical practice and also an unfair labour practice. Being an HR man you should never think even of stopping anyone' settlement of account. Of course, with reason, it is as per the policy of the HR in connection with the matter. But My dear HR Man, if you also support any unethical practice, your management may apply the same tool the time in case you quit your company. Therefore, try to initiate good HR practices. Every action by you has got an equivalent and opposite reaction.It is proven in Management too.

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