Stuck Without a Relieving Letter and Final Pay: How Can I Legally Pursue My Settlement?

Hi,

I joined a stockbroking firm on 1st July 2008 and resigned on 18th August 2008. The company, having its registered office in New Delhi, has not issued me a relieving letter and final settlement cheque to date. I have already written many emails to the HR Department, but there has been no response.

Sources have informed me that the company's MD has placed a hold on all such settlements. I would like to know if there is any legal way to take this company to court or to obtain my final settlement cheque and letter.

Regards, Raghavendra Singh +91 9889577848

The company may hold your pay and will release it after getting a No Objection Certificate from other departments. Since a lot of money is involved in the activity, settlement can be expected only after finding the genuineness of your relieving. It is only a month and a half that you worked there. Do you remember any commitment made by you while joining? I am afraid if instead of you filing a suit against the employer, the company files it against you for absconding!

Mr. Raghavendra Singh, please do not use such harsh words like 'taking the company to court,' because if all of us do this, employers will not have time to conduct business but will have to spend their time in courts. It is very easy to fabricate evidence against an employee (especially one who is not in service or who is absconding) but it is very difficult to defend it when you are out of the organization and do not have the support of colleagues. Therefore, relax and continue contacting the concerned persons.

Regards,

Madhu.T.K

[QUOTE=Madhu.T.K;637535]

The company may hold your pay and will release it after getting a No Objection Certificate from other departments. Since a lot of money is involved in the activity, settlement can be expected only after finding the genuineness of your relieving. It is only a month and a half that you worked there. Do you remember any commitment made by you while joining? I am afraid if instead of you filing a suit against the employer, the company files it against you for absconding!

Mr. Raghavendra Singh, please do not use such hard words like 'taking the company to court', because if all of us do like this, the employers do not have time to do business but have to spend their time in courts only. It is very easy to fabricate evidence against an employee (especially who is not in service or who is absconding) but it is very difficult to defend it when you are out of the organization and when you do not have the support of colleagues. Therefore, relax and continue contacting the concerned persons.

Regards,

Madhu.T.K

I have not given any commitment either verbally or in writing to the company and have resigned via email, of which I do have a copy with me. All the so-called NOCs have been obtained, but as I said, it's because of an instruction from the top bosses; it is not being released. Many people have said to me that I should consider it as Bad Debt and write it off.

"Humiliation of Resources" is what the HR Dept stands for in companies like these.

Anyways, thanks for your suggestion.

Regards,

Raghavendra

Dear Mr. Madhu,

I joined on 5 Dec 2007 and was relieved on 16 Sep 2008. To date, I have NOT received my Final Settlement, and I also claimed 2 days before relieving for Medical Reimbursement (for my baby's birth). The company has provided the Insurance policy for my wife and myself. Nearly 4 months have passed, and there has been no reply yet. If they could at least mention that they are in the process of claiming my Medical Reimbursement, then I can take the bills to my personal Medical Insurance for claiming. Will they be able to provide payment for both the final settlement and Medical Reimbursement?

How should I proceed, Sir, looking forward to your favorable reply.

With Thanks,
Vijay TR

Dear Mr. Vijay,
If your claim is out of an insurance/ medi claim covered, please contact the service providers. Once the premium is paid, you will be covered for one year under normal circumstances despite your leaving the establishment. More over, the claim pertained to one at while you were in the establishment. The payment is to be made by the Insurers and not the company. Therefore, please contact the service providers and see whether or not the claim has been submitted by the company.

Dear Mr. Raghavendra,
I can understand your feeling which forced you to define HR as humiliation of resources. But it should not be accepted as common attribute of all HRs. The persons who work in HR are also human beings just like any other functionary. There may be some body among HRs who may try to retaliate when he gets a chance to do so due to bad relationship the other personnels had with him. I know that HR will be given respect only when a problem arises. When every thing is perfect, no body thinks of HR. Now a days all are professionals who do not want to go to HR and clarify any matter just like “labourers” putting grievances regularly on matters of wrong deduction, ESI benefits, PF advances etc. Such professionals do not care what is going on in HR till a time comes when he has an issue. Unfortunately these professionals do not get in to ‘any issue' so long as their relation with the CEO/ MD is good. Once it is spoiled, the Top management passes it on to HR who in turn should handle it on behalf of the top management. It may not be with vested interests of the HR employees but due to the direction received from higher authorities that payment is withheld. It may also happen that if you enquire the matter with the top management, they will skip out saying that every thing is dealt in HR. In effect HR becomes the scapegoat. Therefore, before blaming any body please evaluate the whole episode.

Regards,

Madhu.T.K

I categorically mentioned that HR is the Humiliation of Resources in companies like my previous employer. It is based on the firsthand experience I received, where HR personnel are no longer answering phones or emails.

Maybe you are right that bosses shift the blame to the HR Department. I don't hold any grudges against the HR Department. Some of my friends work with MNCs where there is a pre-defined structure and policy. I believe this is what enables them to survive for such long periods.

Dear Mr. Madhu,

As per our last discussion, I tried to get in touch with the HR Department and was finally able to reach them. However, they simply stated that there would be no settlement as I was deemed a "non-performer." I would like to know what my next step should be, as I need to obtain Form 16 for filing my IT returns.

I have reviewed the HR policies of the company, and no clause regarding this situation was mentioned in the policies.

Please advise.

Regards,
Raghavendra Singh

If Form 16 is involved, then you can ask for that with a copy to the Income Tax Officer. TDS is deducted when payment is made. If you ask for Form 16, then they should make the payment of TDS after releasing the pay. Therefore, you may write another letter asking for settlement and issue of Form 16 and mark a copy to the ITO.

Regards,
Madhu.T.K

Dear Mr. Madhu,

Today, I received the soft copy of Form 16, which states that I have been paid for the last 18 days of my services, whereas I was not paid even a single paisa for that period. This discrepancy is increasing my tax liability, which is not true at all.

How should I approach the company regarding this issue? It is important to rectify this error to ensure accurate payment and tax reporting.

Regards,
Raghavendra

If the company has shown that they have paid you the settlement amount, then there is no other way but to send a notice calling on them to explain the date and mode of payment. Before that, ensure whether or not the amount was paid into the credit of your bank account. If you are certain that the so-called sum has not been received by you, then the matter involves a criminal nature for which the employer or the person responsible for disbursement of pay is liable to answer. You may send a letter asking for the details of payment and state that if you do not get a satisfactory reply, you will be constrained to move legally by registering a case under the relevant provisions of CPC.

Regards,
Madhu.T.K

Dear Mr. Madhu, please suggest what I should do to get my final settlement and PF from my previous company. It has been almost three months since I left the job, and I am not receiving a proper response from HR. I left the job after giving one month's notice and was relieved in the absence of the HR Manager. I handed over all my responsibilities to the Assistant Manager HR as per the HR Manager's instructions. Now, the Assistant Manager has also left the job, and HR is not clearing my final settlement and PF, claiming that I have not handed over all my responsibilities. Unfortunately, I don't have any proof to show that I have cleared everything.

Please suggest what I should do in this situation.

Thanks & Regards,

Vijay C.B

Your case is similar to that being discussed. If you do not get a proper answer to your request for a final settlement, you may approach the Board of Directors as if you were a creditor having a claim.

For getting your PF withdrawn or transferred to your present PF account, there is no need to wait for a final settlement from the company. To transfer, send Form 13 to the PF Office through the current employer; there is no need for involvement from your previous employer. If you are not covered by PF at present and wish to withdraw the accumulations in PF and Pension Fund, send Form 19 and Form 10 C, respectively, directly to the old PF Office. Ensure to attest your signature by your Bank Manager.

Regards,
Madhu.T.K