Delay in Receiving Full and Final Settlement Despite Company\'s 45-Day Policy

Hello, It\'s now been three and a half months since I resigned from my job, and up to this date, I have yet to receive my full and final settlement. I have already sent emails, spoken to the concerned representative, and even met with them in person. Despite my efforts, I am yet to see progress in my settlement. I escalated the matter to the AVP of the department when I saw no movement, but my settlement is still not completed. Furthermore, I have not received my relieving letter as it is typically provided with the full and final settlement.

According to the company\'s policy, the HR department stated that it would take a maximum of 45 days for the full and final settlement to be processed. I\'m wondering if I have the right to take legal action against the company for this delay.

Best regards,
Shailaja

Dear Shailaja,

We don't know what position you were working in because the solution is very easy under the Payment of Wages Act. You can claim 10 times for delayed payment, and your matter can be sorted out within a very short time with the labor department. However, you can file a suit in civil court where the process is a little lengthy.

We can guide you, provided you tell us your nature of work and designation.

Thank you,
J. S. Malik

Hi,

I used to work with a BPO, Countrywide Financial Corporation, which has now been taken over by Bank of America. I held the position of Senior Trainer (voice and accent). I completed my notice period as advised by the AVP (Training).

Regards, Shailaja Yedla

Dear,

Thank you for providing the information. Your remedy is not covered under the Payment of Wages Act. You should serve them a legal notice through an advocate. Sometimes, they will make payment upon receiving the notice because companies do not want legal problems. Then, you can file a civil suit.

Thank you,
J.S. Malik

Dear HRs,

I have some doubts from my recent job where I resigned. Here are the details:

Company: Syntel Chennai branch
Notice period: Three months
They released me 13 days before my three months' notice. When I asked them about my salary, HR told me that I would get the salary till my release date (i.e., when I was released, not the actual last working day). I informed them that I was willing to serve till the last working day, but they did not accept as they would lose billability with the client. They decided to release me on their chosen date. Initially, I asked for release one week before, but they insisted that I serve the full three months' notice period.

Did I lose my salary for those 13 days? (Released on: 26th Sept, Actual Release date: 8th Oct)

In the Full and Final (F&F) statement, they deducted for those 13 days (the period between Sept 26th and Oct 8th) from my leaves. They mentioned that they would not pay for those days due to me leaving before the end date.

Additionally, Syntel is paying 25% of variable compensation for employees on the payroll until September. As my last date was on 26th Sept, I lost that as well. My variable pay is 108,000 per annum, and 25% means at least I should have received 15 - 20 thousand rupees.

I have written to all HRs at Syntel and the global HR manager, but there has been no response. When I called, they said they would not pay and to do whatever I could.

I am considering legal action against Syntel and the global manager. Could this affect my future career? Is there a way to settle this without legal action?

Please suggest/guide me on this matter.

Thanks a lot in advance,
corporatepractice

It is all about the HR practices that are followed in every company. To the maximum, HR has to clear off the settlement within two weeks. I don't know why such unwanted delays and procrastination are followed. This is supposed to be a smooth process. By torturing the employee, this is also a moment to prove to the company that HR is strict and has powers... hahah... If the HR Manager is upright, ethical, and does not fall into the hands of other pollutant managers, then HR practices are just wheels with good lubricant to roll on without... screechhhh... The process cycle has to go on without intervention.

Regards,
Chandru
Manager-HR
Chennai

Hi Corporatepractise,

They should not deduct leaves. Though, yeah, they need not pay for the early release. But regarding other things like unnecessary delays in paying off the settlement and all other matters, actually, you can approach the labor officer under whose jurisdiction your company falls and have a talk with him/her, explaining matters. Sometimes, an interest in such issues by the labor officer is enough to get things done. A friend of mine tried this out, and it worked for him.

Otherwise, I think the best approach is to get an advocate who deals with such matters to issue a notice. But I have heard and noticed that a lot of companies have the same practice of not paying incentives to employees who do not continue in the same firm.

All the best,
Nancy

Hi,

I have gone through the above matter, and in my opinion, it's a wrong practice to delay F&F settlement. However, if they released you before completing your notice period, they may not pay you for those days you didn't work. Legally, they are correct. My suggestion is to consult with an advocate who deals with these types of issues. They will provide you with the right guidance.

Hi,

As suggested before, you can approach an Advocate. But before that, in my opinion, you should just send a registered A.D. to the HR Department for settlement. Wait for a reply for 15 days; if a reply does not come, then only you can seek help from an Advocate.

You can also send an email to the HR department as well as cc it to the Unit Head (AVP). I think it will work out.

Regards,
Anuj

Dear Sir,

I have some doubts from my recent job where I resigned. Here are the details:

Company: Panacea Biotec Ltd
Notice period: Three months
They terminated me 68 days before the end of my three months' notice period. They provided me with full and final pay after deducting the complete salary for the 68 days instead of just the basic salary. The appointment letter states, "Three months' notice period or three months' salary."

I want to clarify the meaning of salary - does it refer to the basic salary or the complete salary including allowances? If salary refers to the basic salary, should I take legal action against the company?

Could you please suggest or guide me on this?

Thanks a lot in advance,
Anil Parmar

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Hi,

I recently quit a company after serving a 15-day notice out of the required 60 days. In my resignation email to my manager, I requested consideration to waive off the notice period and allow me to be relieved after a 1-month notice. However, they released me after just 15 days of notice, and on my last working day, HR informed me that there would be no deductions from my final settlement as the company itself was relieving me earlier. Now, after 60 days, when I emailed my previous employer requesting the status of my final settlement.

They informed me that they have withheld about 16,000/- from my final settlement, and I still need to pay 15,000/- for not serving the full 40 days notice period. How should I proceed? I was a software engineer from Hyderabad.

Regards,
Prasanth.

Dear Sir/Madam,

Subject: Clarification for not receiving my Allowances from the previous Employer.

I'm Renjith. I worked for a private MANPOWER Consultant in Chennai as a Senior HR Executive for 1.5 years. The company itself closed their service and asked me to resign. I have pending Petrol and Phone allowances for the past 1.5 years. The company closed in February 2012 and has not settled my allowances, apart from the Petrol and Phone allowances. I received my other settlements.

There was no written statement regarding the monthly claims. Now, the employer states that claims should have been made on a monthly basis, and they are unable to settle my Petrol and Phone allowances now.

Kindly advise me on the best course of action.

Thanks & Regards,

Renjith Raveendran

Dear Sir,

I have some doubts from the last job recently where I resigned.

Here are the details:

Company: Segreto Technologies Pvt Ltd, Pune

Notice period: 45 Days

They revealed to me 40 days before the notice period, as the HR head proactively asked me to resign from the organization and mentioned that he would complete my FNF procedure within 10 days (I have an email confirmation from HR about this communication). I have received post-dated cheques, one dated 5th Dec 2012 and the other 22nd Dec 2012.

Also, the HR hasn't signed any FNF clearance letter. I have only signed the Experience letter received letter.

The HR didn't pay me one month's salary, citing that I was not in the office. However, I was working on a data entry project as a Shift Incharge, and the project was closed due to a pending invoice issue. They asked me to stay with the organization, promising to shift me to another location as a Project Coordinator and to pay the salary for the days I wasn't in the office during this period. Yet, I have not been paid for those days. I waited for a month as HR committed me to, otherwise I would have joined another organization.

This is a ridiculous situation, and I want to sue my previous organization as I have still not received my last three months' salary.

I have an email confirmation from HR that he would complete my FNF formalities on 30th Nov 2012. Now, I have received post-dated cheques.

Could you please suggest/guide me on this?

Please find the attachment for email communication between HR and me.

Thank you in advance,

Sameer Tamboli

Dear Sir/Madam,

Thank you for sharing the above information. I am trying to find out the exact rules regarding the maximum time delay allowed to a Pvt. Ltd. I.T. services firm for the full and final settlement of a separated employee.

I was released on 28th May 2013, and still (after more than the last 2 months), my full and final settlement (in terms of experience letter and one month's salary) has not yet been processed by the organization, even though there are absolutely no dues from my side towards the organization. HR is attempting to postpone it with many irrelevant reasons. I believe that generally, it should not take more than 30-45 days after separation.

Could you please guide me on how to handle the current situation and expedite my full and final settlement as soon as possible? Your advice would be greatly appreciated.

Thank you and regards,
Abhay V.

Hi,

I was working in company A, which was acquired by company B. During this process, I resigned. They informed me that my Full and Final settlement (F&F) would be processed within 1 month from my last working day. However, it has been almost 2 months, and I have not received any updates yet. I requested clarification via email, but they mentioned that it would take some time. I do not wish to wait any longer. Can you advise me on the procedure I should follow?

Regards,
Pawan

Hello,

I was working as a service engineer for an MNC, and I have resigned as per the company's demands due to the recession. I also served a one-month notice period. However, after receiving my relieving letter and clearing all dues, I have not received my F&F payment, and the company is not responding to my calls. They initially assured me that the amount would be cleared within a day or so. Now, they are claiming a slight delay due to a change in the company's name, holding my last month's salary as well.

I urgently need advice and help in this matter.

I issued an offer cum appointment letter to one of the employees. The employee also underwent training for a week. However, the employee did not turn up for joining formalities. After 3-4 months, they sent an email claiming wages for those months and a notice period of 90 days. In such circumstances, what should be the legal course of action against that employee?