Waiting for Full & Final Settlement: How Long Should It Really Take After Leaving a Job?

Hi,

I just want to know what is the maximum time period that a company may take to provide full and final settlement for an employee who left the company with all formalities.

I resigned from my previous company, but even after two months, they are not giving me the correct information about the tentative date for my full and final settlement. This has caused my bonus and salary of around 1.5 months to still be with the company.

Thanks,
Nitin

Dear Nitin,

This query is somewhat difficult. There is no specific law framed by the government relating to full and final settlement of dues to be made to the employee/worker/officer who is not covered under any of the labor laws or covered under any laws, e.g., The Payment of Gratuity Act. To give a proper reply, one has to examine under which labor laws/other law the employee is entitled to receive payment from the employer. The situation may also differ if someone resigns or if their services are terminated by the employer. For example, if a person resigns from a service covered under The Factories Act, 1948, then encashment of the EL will be made on or before the next pay day. However, if the employment is terminated, then as per section 79(11), their encashment of EL shall be made before the second working day after such termination. If the establishment is covered under the Shops Act, then we need to refer to the provisions of the respective State Shops and Commercial Establishment Act for encashment of EL. Similarly, bonus, if applicable to the unit, will be paid or may be paid within eight months from the close of the accounting year. Gratuity, if payable, should be settled within 30 days. Thus, one has to examine each and every aspect of payment for this query.

Regards,

R.N.Khola
(Labor Law and Legal Consultant)
09810405361

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 F&F (in terms of an experience letter and one month's salary) has not been completed 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 I should handle the current situation and expedite the completion of my F&F as soon as possible? Your advice would be greatly appreciated.

Thank you and regards,
Abhay V.

Well, there's no certain criteria or time period defined for a company to settle FNF. It depends on various factors like the size of the company, industry, your profile, tenure, as well as the workload on HR and their priorities for the tasks.

However, most companies ask for at least 45 days to settle FNF.

I joined on 01.01.2016 and resigned from my job on 09.06.2016 while I was still in the probation period. My resignation was sent through email, and although it was received, there was no reply. Following my resignation, I served an 11-day notice period instead of the required 7 days, yet there was no response from anyone. Finally, when I inquired about my Full and Final settlement (F&F), our Manager stated that they had not accepted my resignation.

Understanding Resignation Acceptance

I have heard that if there is no reply within 3 days of resignation, it is considered accepted. Is this information accurate?

Legal Pursuit of Full and Final Settlement

I possess copies of all the emails exchanged. Can I legally pursue my F&F using the relevant laws and regulations outlined in the HR policy? How many days does it typically take to receive my F&F as per the HR Policy?

Please assist me with this matter.

Hi, I'm a Manpower Consultant and have been working for the last 6 years. However, in the last 1 year, there has been a continuous delay in salary payments. Additionally, when I submitted my resignation, the employer deducted a notice period of 1 month.