Waiting for Final Paycheck and Documents: What's the Legal Timeframe for Dues?

I am a software engineer in an IT firm. I have resigned from my previous organization at the end of August (before the 31st) and served the notice period of 30 days. I have now joined another company. My previous company has not paid me my salary for August or the notice period salary yet. It has been more than 25 days since my last working day. Whenever I inquire about payment and relieving documents, they say they are still processing the paperwork.

Legal Timeframe for Pending Dues

I would like to know, according to the law, within what timeframe must a company pay all pending dues to its employees? Is there a specific limit, such as 20-30 days, within which the company must complete the process, or is there no such time limit?

Thanks

Usually, the relieving documents are supposed to be handed over to an employee on their last working day. The notice period salary is paid by some companies on the last day once the employee finishes their exit formalities. In a few companies, they may take 30 to 45 days to process this payment.

Thank you.

Many thanks for your reply.

Pending Salary and Financial Issues

My main problem is that they are not giving me my pending salary, and it's been over two months. I am facing financial problems. I have sent them three emails mentioning that I am in financial trouble. However, they are not supportive. Now, my current employer is also asking me about relieving documents.

Considering Legal Action

I am preparing myself to take legal action against the company, so I want to know about the law. If the law states it is legal for a company to hold two months' salary of a person for 30-45 days, then I will wait for 30-45 days.

Salary Breakup Request

Please tell me one more thing. I asked my HR to give me the salary breakup before they prepare the final amount, but they said it is up to the accounts department. If the accounts department agrees, only then will I get the salary breakup. I asked this because many problems have occurred with my colleagues. Some of my colleagues who resigned a few months before my resignation had significant amounts deducted from their salary, and the company refused to provide the deduction details. Is there anything wrong with asking for such a breakup?

Thanks.

I suppose such settlements are governed by the contract of employment. At the time of joining, what were your contract conditions? Please go through that. It may provide the time period within which the final settlement is to be made. Presumably, being in the higher income group, you may not be covered under the Payment of Wages Act. I don't think there is any other law that may enforce payment of salary. It all depends upon the contract of engagement.

Thank you, bpugazhendhi, there is nothing about the relieving process in the copy of the contract that I have. Only the notice period duration and penalties are mentioned. Please guide me on how to get my salary ASAP because my financial conditions are worsening as it's been almost three months without income.

I agree with Shalini. As per the information provided by you, you have completed the exit formalities as directed by the employer. Generally, companies take 30-45 days to release the relieving letter and final payment. Try to find out from your employer the exact day they will be releasing the same through written communication, preferably an email.

Best regards,
Nisha

Steps to Take if Your Salary is Delayed

If your salary is below $18,000, then you could proceed under the Payment of Wages Act for denied or delayed payment. Although this process can be time-consuming, you will eventually receive your salary.

Also, try informing your company that a complaint will be filed with the Labour Department or the Labour Court if they are continuously harassing you.

Regards,
Rajeesh

Many thanks for your replies. My salary was 18K+. As Rajeesh mentioned, I could not proceed due to the payment of wages issue. I have sent four emails to them, but they did not reply. I called the office landline multiple times, but most of the time HR was busy and did not answer the calls or return them even after leaving urgent messages. Finally, I called HR's personal mobile. He mentioned he was too busy to reply to emails.

I also asked them to provide me with a written breakup of the final amount. HR informed me that he would forward my request to the accounting department, but it is up to the accounting section, and he cannot guarantee it. My question is, can the company refuse to provide a breakdown of the salary payment?

Thanks

Salary Payment Issues for Salaries Above Rs. 18,000

What if the salary is more than Rs. 18,000/-? Which course of action is best to be followed? It has been almost a year since I have not received my last month's salary after serving a 30-day notice period with a leading valve manufacturer in Gujarat. I have sent a notice through a lawyer, but they responded by denying all facts as wrong and frivolous. Now, my lawyer is saying to file a case in the Civil Court. Is that the only option? Does the government have mechanisms in place to curb these kinds of practices?

Regards

Dear Mr. Joshishj,

You can file your recovery suit in the civil court where the company is located to enable the case to proceed smoothly. It is essential that you provide all the necessary information along with documentary evidence for a better standpoint. Your attorney/lawyer will take the necessary steps to pursue the actuals imbued to proceed.

Your process to appoint a lawyer should be immediate as the filing of such a petition is up to a valid period of 3 years from the date of your resignation or from the time you or the employer last communicated. Therefore, a lawyer would seek the same and file an appeal to prepare the letter to the employer and plaintiff applications, etc.

Find out the time left and approach the source immediately.

Resolving Full and Final Settlement Delays

No employer will hold back F&F for more than 60 days. Do send an email to your HR with a CC to his/her superior and a copy to your ex-line manager. As briefed by others, you can approach the court of law, but it will take its own time. My suggestion is to get it solved by personally meeting HR.

With regard to the salary breakup, you should receive it along with F&F, and the employer should keep a duly signed copy of that final breakup signed by you. It's mandatory for the employer to have this.

Legal Obligations for Full and Final Settlement

Every employer is legally bound to make a full and final settlement of all outstanding dues after the termination of a contract. You have to submit a withdrawal application form to get P.F. and Gratuity if not already done so. Thereafter, the company is bound to release those payments within 30 days from the due date.

In case of non-payment, you can lodge a complaint with the Regional P.F. Commissioner for P.F. and to the concerned ALC and CA for gratuity. For remaining dues, you can file a recovery suit before the Civil Court, where the cause of action took place. Please take appropriate actions in consultation with a lawyer.

To the best of my knowledge, if an employee requests the breakdown of their full and final salary settlement, the company is obligated to provide it and cannot refuse. It's akin to a right to information scenario. However, I will await the feedback from senior colleagues on this matter.

Best regards,
Nisha

Once you visit your company "X" and check the duration they take to clear the payment, or speak with your colleagues from "X". If the duration has passed, I suggest you write an email to the higher management, cc'ing HR and Accounts, to address the lack of response and delay in final payment.

Regarding your salary, the company should provide you with a detailed breakdown.