Can I Sue My Employer for Unpaid Dues After Being Let Go Without Reason? Seeking Advice

I have been asked to leave the job in 2 days without any valid reason from the employer. It took me 1 complete month to follow up for my dues clearance, which included:

1. March salary
2. February pending salary (₹42,000 to be paid in March after submission of tax proofs)
3. 2-month notice period salary
4. ₹120,000 was my reimbursement balance.

In total, on 2nd May, the company gave me a cheque of ₹2.2 lakh but did not pay the following:

1. ₹1,100: deducted against the data card given to me (it was never mentioned anywhere in the employee guidebook about this)
2. ₹3,000: miscellaneous deduction made with no proof
3. ₹9,800: the bill was lost, and the approval was in the mail from my department head.
4. ₹42,000: February pending salary

Now, after 10 days of follow-ups and with no reply from my employer, today I did get an email from them. They are claiming that since I have deposited the cheque and all are cleared on 3rd May, they are hereby considering that all my doubts are cleared, and the full and final settlement is cleared.

Please suggest how I can recover my balance dues. Can I sue the company? If yes, then how?

Thanks

Clarification Needed for Dues Settlement

First of all, do let us know the following:

1. Did you claim all your dues?

2. When the employer paid you the cheque of Rs. 2.2 lakh, did you receive a Full and Final (FnF) statement? Did you accept (by signature) the calculation on the statement?

3. Did you raise any concerns about miscalculation or if the calculation is not in accordance with yours?

Please clarify the above so that the seniors can guide you accordingly.

I will go point by point.

1. The data card was misplaced during my official trip in December. I informed HR via email. At that time, nothing was mentioned regarding any chargeable amount, nor was it stated in any company documents.

2. ₹3000 was deducted as miscellaneous charges with no supporting documentation.

3. ₹9800: I used my personal funds to purchase products for the company's event. In the reimbursement form, a bill was attached but was misplaced by the finance team. They later requested approval. I obtained approval from the director as the purchase was made for company use. However, during the Full and Final (FnF) settlement, this was ignored.

4. No pending February salary was given. They paid ₹28000 and deducted the balance due to non-submission of the tax declaration. The proof of tax declaration was submitted on 3rd March, and the company confirmed that the balance would be paid along with the March salary.

5. I have signed the FnF papers and also documented these cases in writing, keeping a photocopy for myself. As the company is a private firm, I did not trust waiting for their response in clearing the balance issue, so I deposited the cheque I received immediately.

6. On 29th March, I was informed not to come from 1st April and was told that they would pay two months' salary along with other pending reimbursements.

7. I have all written communication related to pending dues to date.

Responsibility for Lost Items

1. If you lost a data card, that is your fault, and they have the full right to deduct the cost of the same. You are responsible for what is given to you.

Small Deductions and Company Policies

2. In the overall picture, 3000 is something small; forget it. They will have some details and excuses for it.

3. Any item of purchase for which bills are not available, the company will not reimburse. That is a standard that all companies follow. Finance generally does not lose a bill, so it is possible that you may not have attached it. It's difficult now to prove either way. What I do not understand is why it is being deducted. Was it paid as an advance? Or do you mean that they refused to include it in your F&F?

Following Up on Tax Forms and Deductions

4. If you submitted the relevant tax forms, the balance is payable to you, and you need to follow up and get it. However, the question is how you will take this up. You are not covered under the Payment of Wages Act or Factories Act, or even the Industrial Dispute Act. A civil case will take a long time, and what you spend on your lawyers will be more than the 42000 due to you. You need to speak to the owners of the company and point out that it is unfair to hold back the money when you gave the relevant tax forms. Forget about the other things; just talk about this, which they had promised to pay. Sometimes HR does things the owners may not approve.

Seeking External Assistance

Probably, you should visit the labor office and see if they can help you. Sometimes just a letter or query from them does the trick. Else a notice from a lawyer also does the trick. Again, my suggestion there would be to focus on the 42000 and forget the rest, which are contentious.

Checking Tax Documentation

Please check the Form 16 that is given to you. If the 42000 deducted is not included, you can also complain to the tax authorities that they deducted 42000 TDS but did not deposit it (you will need the help of a good CA for that).