Can My Company End My Notice Period Early and Delay My Final Settlement? What Are My Rights?

I am working in a reputed Pharma Company as an Area Manager for the past year, where representatives report to me. I served a one-month notice dated July 13, 2011, and intended to work until the completion of the notice period. However, the company has now halted my fieldwork and informed me that my last working day is July 13, 2011. They have offered me one month's salary in lieu of notice and final settlement. Today is the 25th, and I have not received any further communication regarding this matter or the settlement.

Question on Wages and Settlement

My question is, do I have the right to receive full wages until I receive my relieving letter? Since they have prevented me from working, can I take any action if the settlement continues to be delayed?

All suggestions are welcome.

Understanding Your Rights During Notice Period and Settlement

I understand from your post that even after conveying your willingness to serve the notice period, the ex-employer preferred to relieve you from your duties by agreeing to pay you one month's salary in lieu of the notice period along with the full and final settlement.

Q1 - Rights to Full Wages Until Receiving a Relieving Letter

You are entitled to wages for the period you have worked with the company. No organization can deny you wages, and this can be challenged in any court of law in India. Regarding the one-month salary in lieu of the notice period, you would need to have all the supporting documents to claim the same if it is denied during the final settlement. Keep records of any emails or direct communications regarding the relieving, payout of the notice period salary, relieving intimation, and appointment letter.

Q2 - Actions for Delayed Settlement

You can't take any actions for being stopped from work, as you were serving the notice period and the employer has every right to relieve you, provided the terms and conditions in the appointment letter are met (referring to the notice period and salary thereof). Concerning the full and final settlement, you can regularly follow up with HR or the concerned person, or even visit the company in person. If it is further delayed, you can approach a lawyer with the necessary documentary proofs and evidence to initiate legal actions against the company.

Hope the information is clear.

Thank you for the guidance. I would like to add the following information:

I was on leave from 08-07-2011 to 16-07-2011. I served the one-month notice on 13-07-2011 through email from my Official Company ID after a telephonic conversation with my boss. On 18-07-2011, I resumed my services and completed the day. On 19-07-2011, my boss asked me 'not to work' and conveyed the decision of the company over the telephone. No official communication has been received to date from him/HR.

He mentioned that I would be considered on leave from 13-07-11 onwards and will be paid wages for that period only, along with one month's salary in addition. I argued regarding the date of relieving, suggesting it should be 19-07-11 as I completed my day's work on 18-07-11. However, I am concerned they will process relieving on the 13th.

In the event they issue a Relieving Letter dated 13-07-11, should I accept it or not? Can I dispute this decision? How can I go about doing so? Any additional insights on this matter incorporating Labor Laws/Acts would be greatly appreciated.

Thanks once again.

Legal Protection for Managerial Positions in the Pharmaceutical Industry

Which law protects against injustices done by pharmaceutical companies to people working in managerial positions (supervisory level)? What type of court deals with such cases?

(Please don't laugh... I have to say I don't really know anything about this.)

Ragini, there are a few ambiguities in your post; I would like to have precise information on this issue:

1. Exact date of Resignation
2. Period of Notice Pay (Start Date & Proposed End Date)

I was on leave from 08-07-2011 to 16-07-2011. Normally, companies don't allow employees to avail leave when they are serving the notice period. Your case is exceptional.

I served the said 1-month Notice on 13-07-2011 through mail from Official Company ID after a telephonic conversation with my Boss. - Was the 13th of July the start date of the notice period? I can't follow clearly.

On 19-07-2011, my boss asked me 'not to work' and conveyed the company's decision over the telephone. There has been no official communication from him or HR until now. How can you agree to leave the company just based on a verbal direction from your boss? They could even claim that you left on your own or absconded from the office from the 18th of July.

Considering everything you've mentioned (though a bit confusing), I would first advise you to negotiate with your HR/Boss on the date of relieving and the period of wages. If they remain adamant, settle for an amicable solution by accepting the relieving letter as per their records (13th July) and obtain the Full and Final Settlement.

I would prefer not to cite any labor laws or anything in this issue as it might confuse you further. Think practically, approach the ex-employer, and come to an amicable solution. Don't burn bridges by spoiling your name/credibility in the job market. Your new company might conduct a background check, and if anything negative comes from the ex-employer, it could adversely affect your career.

Think wisely and act!

I would suggest you not initiate any legal proceedings against your ex-employer. Be practical; it might be harmful to your career. Settle the issue amicably.

As you have mentioned that you worked on the 18th, did you mark your attendance on the 18th or sign any documents that, when referred to, show you were present on the 18th? This will help you argue with your ex-employer to reconsider your date of relieving.

Dear Ragini,
From your statements, it appears that you have availed leave from 8th to 16th July and you served your resignation by email on 13th July. You joined duty on 18th July, and in my opinion, the employer has felt that you availed leave from 8th July to 16th July 2011 to look for alternate employment. When you got the alternate employment on 12th July, you served the resignation letter by email and chose to complete the other formalities for new employment till 16th July and reported back on 18th July.

As your current employer was not clear whether you are joining a competitor, he has safely relieved you from duties effective from 13th July 2011.

Had you served the resignation letter on 18th July, it would have been better. As you have served the resignation letter dated 13th July, from the employer's perspective, he can relieve you only on 13th July. Moreover, you have stated that the employer is also willing to pay a one-month notice pay. I presume that your employer will wait till the completion of the notice period, which is 12th August 2011, and then complete your full and final settlement.

Recommendation

You can formally write to the employer narrating the chronology of events.

1. Your approved leave from 8th to 16th July 2011. (I am not sure whether this was an LTA leave); if this was so, you can state so.

2. Your resignation letter dated 13th July 2011 and the reasons stated therein with a copy of the email for reference.

3. Your resumption of duty on 18th July 2011 after your return from authorized leave and serving for the whole day.

4. The date and time of the telephonic conversation with your boss and the matters stated by him over the telephone.

5. Request to the employer to make the full and final settlement dues in line with the telephonic conversation.

Send this letter by ordinary post and also send it by email with the attachment of the letter in PDF format.

My impressions are your employer appears to be genuine and will settle your dues by mid-August 2011. Keep us updated.

All the very best.

Regards,
M.V. KANNAN

Thank you to all for your valuable suggestions and comments. My former employer is Lupin Ltd, and definitely, it is very genuine on its part. Let's see, I am in touch with my seniors and HR. I left on good terms and will definitely settle this all amicably. (As they didn't offer any official letter to date, there are chances of injustice. That's why I just wanted to know the laws that protect a person working at a managerial position in a pharma sales company.)

Management conveyed that they will consider my last day of working, i.e., 18th July, while relieving me. My boss forwarded the clearance certificate to HR, and I hope they will settle my account shortly.

I will keep updating...

Thanks again...