Full And Final Settlement - Process - Law - Opinion - CiteHR
Madhu.T.K
Industrial Relations And Labour Laws
Kamalkantps
Advocate
Loginmiraclelogistics
Asso.prof.(commerce & Management) Pg
SAIBHAKTA
Retired From Air India
Hopegovind
Manager- Hr & Admin
+2 Others

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Dear Friends,

I had a doubt on full and final settlement, pl advise on the same.

I was working in an MNC and i was relieved by the company two months back.

The scenario is,

During my tenure, i come across some acts committed by my managers which will spoil the company name and integrity of company. This some how known to the managers and decided to corner me and did all the things, which insults me a lot. During our internal discussions, i inform them that i was in a plan to resign my job.

Hence finally , as a result of unfair employee practice by managers, i decided to send all the issues to top management, and sent all information.

By the time , HR had an oral telephonic inquiry with me and came to know that, HR acts in favor of my managers. Finally on the same day of inquiry HR and manager relieved me from my service on the same day without giving any notice.

Our company policy is , 3 months notice period by either party or payment of 3 months pay in case of immediate termination. But without giving any reasons, i was relieved, stating in a mail to me that " my resignation is accepted" .

I informed the management that i have not submitted my resignation. But they told that , my oral discussion with managers about my plan to relieve is taken as resignation and i was relieved.

In settlement, management didn't provide me 3 months notice period pay.

till now i was fighting for my settlement.

Pl advice how to proceed, is oral discussion relate to resignation can be considered as formal resignation.

Law relate to settlement.

Can i proceed with legal actions...
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It is right that oral discussion will not be considered as a statement in such scenarios, ie, resignation from employment. Therefore, the relieving will have meaning of terminating without offering an opportunity to be heard or without following the principles of natural justice.

If you have been working with the company not in supervisory or managerial capacity you can take the help of the District Labour Officer, the appropriate authority under the Industrial Disputes Act. However, if you have been working as a supervisor or manager having control over other workers either to sanction leave to them, appraise their performance or initiate disciplinary action against them, you will be considered as a managerial person and will not get support of the above Act. Still, if the terms of appointment order so says, you are expected to get three months time or get salary in lieu.

Even if you had given resignation in writing showing that you would like to be relieved after three months of the date of resignation, you should get three months pay if the employer relieves you with immediate effect.

Madhu.T.K
Madhu has advised well. The act is against principle of natural justice.
If you are not in a supervisory role, the entire process of disciplibary action and grievance handling should ve as per the Industrial Dispute Act. In your case it does noy seem that it was followed properly.
Further, evrn if the resignayion "accepted" you should get 3 months salary.
I second the opinion of Mr. Madhu TK. Resignation cannot be oral and a discussion to resign cannot be termed as resignation by any streach of imagination. Surely as suggusted above please contact the appropriate authority for your grievance redressal.
But before that send a legal notice to your Ex-Employer regarding your dues. I have seen that in most of the cases the problem gets resolved by legal notice itself.
What were the irregularities ? Was it suppression of facts which should statutorily be disclosed to regulatory authorities or stake holders ? In that case you may get "whistle blowers" protection.May our members with legal background elaborate on this .
Dear SKMK,
I sympathise with you for your plight. But the law is, so far as your F & F settlement is concerned, on your side. Take it up legally. You will win.
But with regard to what would be their defence or victimisation or retaliatory arms and ammunition I am not sure, wait and watch. May be you should prepare yourself to protect yourself from possible false allegations against you to deny F & F settlement, visualise.
Friends can go thro' the attached article down loaded from the site, position with regard to 'Whistle Blower' concept in India which is 'a still born child' state. We have seen 'Satyam computers' and seeing many more instances in India's corporate sector. And I myself experienced such instances. In the unorganised sector no one can count them.
All the best.

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Dear sir, Present i am working in one company due to some problems company not paying salaries to the employees. Last five months company not paying salaries. kindly give me suggestion regards kumar
Just once cross check the terms and condations with respect to your appointment letter...There are many loop holes for HR's for defending themselves from the current situation.
If every this is clear from your side then take this issue to the notice of the labour commision.
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Dear Kumar,
Your query is inadequate. What is the reason for not paying the salary for 5 long months. Is very sad how an employer leave it like this. Is't that only you are not paid or all the employees were not paid ? Are you covered by Factory Act. What is your co. labour strength. What business, manufacturing or what. What you people are doing ? Do you have union ? Have any body complained against this illegal act to your ALC or State Labour Dept. What happened to your PF/ESI your co. is remitting them ? Is it a profit making co or under loss ? If it is a sick co. then there is real problem.
In any case you have to take it up with the Labour Commissioner to intervene. If your co. is selling and getting payments from your customer then there is every possibility they are trying to fool U people.
how to approach labour commissioner individual or all employees give me advice regards kumar
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