How Can We Handle a Former Employer Withholding Salary After Serving Notice Period?

Seeking Advice on Withheld Salary and Incentives

My husband worked with Mercedes-Benz Autohangar for about two years. He was the top performer in Sales and independently managed the Preowned car section. He received a better job offer due to an unsatisfactory salary increment. He informed his supervisor about the new opportunity and requested a 15-day notice period to leave the company amicably, to which the supervisor agreed. He smoothly transitioned his duties until the last day of the notice period and consistently reminded the supervisor via email to address any pending issues before his departure. Unfortunately, he received no responses.

After joining a new company, his former supervisor at Mercedes-Benz Autohangar raised multiple issues that were delayed by the workshop or led to customer dissatisfaction, despite my husband having already contacted the customers who were unwilling to cooperate due to the delays.

In my opinion, management should recognize that customer satisfaction is beyond an individual's control, and no one should be penalized for it.

The Mercedes-Benz Autohangar section withheld his salary for August 2011 and incentives for June, July, and August, totaling approximately 1 lakh rupees. I suspect the organization is attempting to find reasons to avoid payment.

I seek your valuable advice as my husband is facing significant emotional and mental distress due to financial difficulties arising from the delayed salaries from both his former and current employers.

Please advise... :(

Regards,
Rebecca Tanna

The following information is required:

1. Was the resignation communicated to HR in the appropriate manner?
2. Was the notice period served as per the terms of the letter of appointment?
3. Was the handover process completed as per the guidelines laid down for the same?
4. It appears that there was an informal communication of resignation to the supervisor only.
5. Were all dues and other clearances taken at the time of leaving?
6. Was the Full and Final Settlement carried out and a relieving letter issued?

Thank you.

Thank you for your reply. My answers to your queries are as follows:

1. Was the resignation communicated to HR in the appropriate manner?

• Yes, it was conveyed to HR and the Manager. We have had email follow-ups regarding any pending handover, to which neither HR nor the Manager responded.

2. Whether the notice period was served as per the terms of the letter of appointment?

• The required notice period was 1 month, but the notice period served was 15 days, with confirmation from the Manager who then verbally acknowledged and mentioned releasing the salary shortly.

3. Whether the handover process had been completed as per the guidelines laid down for the same?

• The manager does not approve of signing the relieving letter, providing reasons for the same and raising new issues every time contacted.

4. It appears that there was an informal communication of resignation to the supervisor only?

• The supervisor was kept in the loop, and Mr. Alok made all necessary follow-ups to complete the handover.

5. Whether at the time of leaving; no dues and other clearances had been taken?

• No payments or dues were cleared upon leaving.

6. Whether the Full and Final Settlement was carried out, and the relieving letter had been issued?

• Full and Final Settlement and relieving letter were not issued.

In view of the above, I would request you to advise us on getting this matter resolved. Also, I would appreciate it if you could share your contact number with us for communication on the same, and I assure you of maintaining absolute professionalism and not misusing your personal information. You may get in touch with Mr. Alok at [Phone Number Removed For Privacy Reasons] or me at [Phone Number Removed For Privacy Reasons].

Hope to hear from you and appreciate your time involved in writing to us.

Regards,
Rebecca.

Hi Rebecca, here are a few points of discussion:

1. The manager did not approve of signing the relieving letter and raised new issues every time. Subsequently, you left the company in an informal way.

The above two points are going against you for the following reasons:

A. The superior was of the opinion that some issues exist, which is why the relieving cannot be granted.

B. Your informal leaving without full and final settlement is again against you. It reflects that you were absent without completing the notice period as prescribed under the letter of appointment.

At the moment, you are seeking the following remedies:

i. Incentive for three months: June, July, August for Rs 100,000.00

ii. Salary for the month of August 11.

iii. A relieving and experience letter from Mercedes Benz.

Since you have left the company without full and final settlement and proper relieving documents, in my opinion, your previous employer has strong credentials at the moment.

There are two ways to resolve this issue:

1. File a request to the Labour Commissioner of the concerned area in which the establishment is situated, for the recovery of wages and incentives from the employer.

2. Discuss the issue personally with the HR Team of the previous employer and resolve the issue amicably by keeping the core HR Team in confidence. I think this is the best way to proceed. Insist on carrying out the Full and Final Settlement. Remember that instead of going for litigation, it is always better to resolve the issue by maintaining good relations.

Let's see if there are any other suggestions from the Cite HR Members.

Regards

Thank you for your advice. We will try out your suggestion and let you know the outcome. Moreover, we would still hope that any other CiteHR Members have additional suggestions on the same matter.

Warm Regards,
Rebecca :)

Your husband has given a 15-day notice of resignation, and through email reminders, the former employer agreed to it. He did not contest that the notice period was excessive and allowed your husband to leave the company. Therefore, he has no right to question your husband's competence. If the employer withholds the dues payable, then make a complaint to the inspector under the Sales Promotion Employees Act, 1976, and the authorities under the ID Act since he should be deemed a workman. The employer cannot withhold relieving if the notice period has expired, and no disciplinary action was taken before deemed relieving.