Dinesh Divekar
Business Mentor, Consultant And Trainer
Legal Analyst, Hrm
Labour Law Advocate
Administration & Hr
Project Engineer
+2 Others

Just wanted to know, once the company issues the relieving letter and PF, whether any actions can be taken against the employee if he/she did not settle the dues of the company?
Please clarify the doubt
6th October 2015 From India, Bengaluru
Dear friend,
If the employee did not settle the dues then why he was given relieving letter and who has given him?
Are you from HR or you are that employee who got relieving letter and now company is asking dues from you?
If you are from HR then let me provide you solution that is equivalent to putting cart before horse. Send a letter to the employee to clear his dues. In case if he does not respond then send him letter threatening police complaint. If the dues are of higher amount then conduct domestic enquiry and lodge police complaint.
By the way, disciplinary action should be taken against the person who has issued him the relieving letter. This type of goof up is not condonable.
Dinesh Divekar

6th October 2015 From India, Bangalore
From the nature of query, it clearly reveals that neither he has any relation with HR nor he has any problem in reality. Rather, it is his just a vain thought to float in the air without applying his mind that the company don't give any relieving letter to the employee without getting its dues settled. Moreover, the ID "uuuuukk " of the querist also reveals, as if he is not a serious enough to acquire any knowledge of service rules & regulation, rather he seems to have registered just to have some fun.
6th October 2015 From India, Delhi
I Just wanted clarification. :) thanks for solving the doubt. Police complaint without any proof will not happen right? I'm not related to this case. One of my friend had asked me so thought of discussing this here and get some solution for him.
Once the company given the relieving letter and settled the PF amount I think no claws can be taken against that employee.
Now the company who has issues relieving letter is troubling him asking for due of 14K of one month notice which they did not ask when this employee left the organization or when he got the relieving letter, and troubling him dropping mail and harassing him by call and message.
Please let me know any actions can be taken against the company for doing all this.
7th October 2015 From India, Bengaluru
Dear Nathrao,
How to Calculate the notice period pay ?
Is there any formulae specified regarding calculation of Notice period pay ?
Awaiting for your reply.
Warm regards,
Pranab Chakraborty
8th October 2015 From India, Mumbai
Look at your appointment letter.It would give the notice period pay-gross pay,basic pay etc.
Look at your standing orders.
Under Factories Act, Shops and Establishments Act, pay for encashment of earned leave (annual leave with wages) means basic + DA. Therefore, in the context of notice pay also the pay shall have the meaning of basic salary + DA
8th October 2015 From India, Pune
For police complaint what proof is required, that the employee has not worked with the company or the notice period was served or notice pay is not applicable. It seems that you have little knowledge of the law prevailing in India. If the company desires to lodge a complaint, your so called friend will be in a soup. Please don't under estimate any company or anyone, company can hire the topmost lawyer of the town which an employee cannot afford to bear the fees, keep that in mind. Last but not the least always advise which is right and is beneficial to the person who requires your help, but don't give wrong advices or help the wrong doings.
8th October 2015 From India, Ahmadabad
On appointment letter only basic is mentioned, but few month back they change the policy as we have to pay gross salary to company. plz suggest what to do?
9th October 2015 From India, Pune
Policy can change at any given point of time, but the acceptance of the employee is required. If you have accepted the policy of Gross Pay then you have to adhere to it.
10th October 2015 From India, Ahmadabad
Dinesh Sir, If I have terminated an employee and then find out that the employee owes money to the company. How can I recover that money? It has been 5 months since the employee was terminated.
17th May 2016
Once the employer employee relationship is ceased by either way of resignation or termination the bindings between them is gone. However, in what form the employee owes money? Is it through some misappropriation or loan? If through loan, what is the nature of such loan? Depending on all the details advice on recovery can be provided.
Please check my blog at www.labourlawhub.com
17th May 2016 From India, Kolkata
""Is it through some misappropriation or loan?""
If documents duly acknowledged show alone is outstanding from ex employee,company retains legal right to recover the same.
In case of misappropriated money,company can start legal process to recover the money.
Relationship of employee-employer may cease,but burden of refunding money still remains with employee(ex)
It could be a clerical mistake that cessation of employee-employer reaction may have been initiated from employer side.
17th May 2016 From India, Pune
Ritesh Sir,
The employee had taken a loan from the company. And the company had given it as salary advance. However, the full amount is yet to be recovered. Can I still recover the loan even after 5 months?
18th May 2016
It is not a case of resignation, where you could have resorted even to a legal action for the outstanding dues of the employee. It is a matter of termination by the company. Thoughtless termination can rebounce like your instance. You could first have ensured recovery of dues from the employee before terminating him. Once termination is affected, you should forget about your dues against him. You may have to write off the amount to treat that as loss to the company. However, if the company is not agreeable to sustain this loss, the balance amount of advance can be made recoverable from the executive responsible for termination without ensuring recovery of the dues from the employee.
18th May 2016 From India, Delhi
Psdhingra sir thank you for your clarification.
Just to get a clearer understanding, could you refer me to the Act and Sub Sections where I can refer with reference to such termination?
It's a learning curve for a start up like ours.
19th May 2016
If you are at start up stage, you could also have stated in what capacity you have been posted in HR and termiated the employee. If you are a qualified HR executive, you should well have known that the industrial employment is not regulated merely by one Act of law. With particular reference to your initial query, you may better go through the terms & conditions of appointment of the employee, certified standing orders, and the HR Manual. Relevance of learning is aimless and reading between the lines, if not with specific reference to the complete background of the case, including the real cause of termination, which you have nowhere mentioned.
20th May 2016 From India, Delhi
You are contradicting yourself. A loan and salary advance are different. Since you are sticking to the point of 'loan' what documentary evidences you have against the employee that you have provided him loan? Depending on nature of such documents, further proceedings and advice can be initiated.
Legally, you can recover the 'loan' through money suit which can be time consuming and expensive too.
Check my blog at www.labourlawhub.com
20th May 2016 From India, Kolkata
As rightly said by Mr. Dhingra it would have been recovered at the time of termination, what if the employee states that he/she is unemployed and does not have any source of income for his daily needs. The court of law will be at his/her side.
22nd May 2016 From India, Ahmadabad
The employee was terminated by the CEO.
A salary advance was given as a cheque.
The employee did not sign any documents.
The employee was terminated because his subordinates were not happy under him and were totally frustrated.
The CEO now wants to recover the money.
A months notice or a month's basic salary was supposed to be given if termination was to be effected during probation. The CEO did not honor this and terminated the employee.
I have been asked by the CEO to get in touch with the ex employee and initiate recovery. I just want to be sure if the can initiate recovery.
I am new to this company @psdhingra sir.
Thank you
28th May 2016
As already mentioned earlier, since you have already terminated the service, you have lost the opportunity to recover the same to a great extend. Domestic enquiry can be initiated during the course of employment and not after that.
If you can prove that you have given the money as "loan", then you can recover that amount through money suit.
On the other hand, the terminated employee can easily claim one month's notice pay against you.
Check my blog at www.labourlawhub.com
28th May 2016 From India, Kolkata
Dear Saji,
Hypothetical questions has no relevance in legal parlance. If you have any such problem in reality where the employee states before the court that he/she is unemployed and does not have any source of income for his daily needs, it is for the court to decide, not Mr. Dhingra. Moreover, it is such a case, where fault lies on the part of the management, not the employee, if recovery not made before full & final. The judgment is supposed to tilt on the side of the employee, as after termination of employee, the company cannot rightfully claim its dues. It was for the company to recover the dues first before deciding upon termination.
29th May 2016 From India, Delhi
Mr. MRaj,

You have not state in what capacity you have been posted in the HR. What about the happiness of superiors of the employee over his work and performance, if employee was terminated because his subordinates were not happy under him and were totally frustrated. I wonder, if the employee was terminated without conducting any domestic inquiry merely because his subordinates were not happy with him, not bcause of his own performance or productivity. A question arises, suppose, if the employees are not happy with the CEO, would he get himself terminated? Also, if the employees get unhappy with you, would the CEO terminate you also without seeing your performance?

Anyway, Riteshmaity has already well advised you on your latest clarification. If CEO was hasty in terminating the employee, recovery can only be "Bhawan Bharosay." You can only file summary suit against the employee, rest depends upon the judgment, which I guess can't be in favour of the company. Rather, you should better pray God that employee is not able to get verdict of a competent court in his favour to get himself reinstated due to unwise and unwarranted hasty decision of the CEO.
29th May 2016 From India, Delhi
Dear Mr. Dhingra I have pointed out the same thing, as you have mentioned. Termination was an hasty decision the management is at fault for non recovery, the court will be in favor of the employee.
30th May 2016 From India, Ahmadabad
Dear Saji,
I appreciate your agreement with me. But, in my last post, I just pointed out towards your question, "what if the employee states that he/she is unemployed and does not have any source of income for his daily needs. The court of law will be at his/her side." So, that is not within the scope of our members to judge. Only the court has to decide on that question, if taken up by the employee.
Wven otherwise, happiness or unhappiness of subordinates cannot be taken as indiscipline on the part of the employee. His low performance or indiscipline matter for the purpose of termination.
30th May 2016 From India, Delhi
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