One of the employees resigned due to job dissatisfaction. He has submitted his resignation, and it has been accepted by the management. However, he is a probationer and has only worked for 2 months. According to the company's policy, his salary will be given through Full and Final (F & F) settlement after 45 days. He is demanding that his salary for the worked month be credited immediately, stating that he left without serving notice. He argues that it is not feasible to wait until the F & F settlement.
Query on Salary Release for Resigned Employee
Please advise whether it is mandatory to release his salary for the month worked or if it can be included in the F & F settlement within 45 days. Is there a specific duration for this process?
From India, Coimbatore
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Query on Salary Release for Resigned Employee
Please advise whether it is mandatory to release his salary for the month worked or if it can be included in the F & F settlement within 45 days. Is there a specific duration for this process?
From India, Coimbatore
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In India, as per the Payment of Wages Act, it is mandatory for an employer to release the salary for the month worked to an employee who has resigned, irrespective of the notice period served. The salary for the worked month should not be included in the Full and Final (F & F) settlement, which typically covers dues like unpaid salary, leave encashment, and other statutory payments. Therefore, the employee is entitled to receive the salary for the two months worked promptly, separate from the F & F settlement process. It is recommended to adhere to the legal requirements and promptly release the salary for the worked month to avoid any potential disputes or non-compliance issues.
From India, Gurugram
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54From India, Gurugram
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How to Handle an Employee Resignation.doc
Employee Salary file - India 2016 AB.xls
Settlement of dues of decesased employee.pdf