Manager Resigned but No Final Settlement: What Are the Legal Steps to Take?

Dear Senior,

If a manager resigns from the company with the legal notice (one month) and the company is not providing his Full and Final (F n F) Amount, please suggest to me what the legal procedure is regarding his settlement.

Regards,
Jyoti

Dear Jayoti,

When no relief is available under labor laws, then approach the civil court.

Regards,
R.N. Khola
(Labor Law & Legal Consultant)

Dear Jyoti,

Generally, at the manager level, there will be no relief from the labor court; you have to approach the civil court.

Regards,
Brijesh

Hi,

The company cannot hold the F&F. A few questions I would like to ask are: Do you have a copy of the accepted resignation letter or any document that proves you were an employee of the company during the mentioned tenure? If yes, you need to send a civil notification to the company stating the requisites, i.e., F&F. If they fail to comply, you could proceed to court.

Moreover, if they withhold your salary beyond the stipulated period, they are obligated to pay the accrued interest.

Thank you.

Dear Sir,

Yes, he has an appointment letter, all salary slips, resignation and acceptance letters, bank transfer statements, and all legal documents. However, in the acceptance letter, they mentioned, "His account will be settled only when all the files and documents are submitted to the undersigned, completing all the work related to his responsibility." They have submitted all the files to the concerned department.

Please give suggestions.

Regards,
Jyoti

Badarpur border, Jat bhai ke kya tha? Latth, kambal or khat... sola dune aath... jane de... bawle... Exserg

Kindly let me know if you would like any further assistance.

Hi Jyoti,

In such a case, have they signed anything pertaining to F&F with the company stating no dues pending? If so, it would be difficult for them to prove that anything is pending. If not, ask the company to write an email stating the kind of documents and files required on an email where you have demanded an F&F.

Regards,
Sandeep

Dear Sandeep Pinto,

On this ground, if an employee could not finish the task within the notice period, is the employer authorized to not settle his account? I think the employer cannot bind any employee (Manager) to take on this type of responsibility in the notice period. Only the employer can collect files and documents. Is this true or not?

Regards,
Jyoti

Dear Jyoti,

Settlement of accounts of an employee cannot be withheld, except where he has been convicted of misconduct. If 'misconduct' is not the case with the person in question, then it will be wise to settle his F&F instead of waiting for him to initiate legal proceedings against the company. Let your management understand that it is not worth wasting time on legalities when that time can be utilized for business development.

Good luck.

Prashant

Dear Prasant,

Thank you for your reply. Now, please tell me what the legal procedure is for his settlement because they are not ready to give his full and final amount. They are forcing him to finish all the work, and then they will release his full and final amount.

Regards,
Jyoti

Dear Prasant,

Thank you for your reply. Now, please tell me what the legal procedure is for his settlement because they are not ready to give his full and final amount. They are forcing him to finish all work, and then they will release his full and final amount.

Regards,
Jyoti

Seniors, await your feedback: Within how many days of an employee's exit should we make F&F? Is there any particular time frame?

Regards,
Deepa Sunshine
HR

Dear team,

The Full & Final settlement should be clear on the last working day or the next day (within 24-48 hours).

Regards,
Alok

Dear Mr. Alok,

Thank you for your reply. Is it according to the Factories Act that we should settle within 48 hours of an employee's exit? I see many companies settling the same in the next 2-3 months. In such a case, what happens?

Regards,
Deepa
Sunshine HR