Facing Unpaid Salary After Resignation: What Steps Should I Take Next?

I was an Operations and Marketing Manager at "Posco-Poggenamp Electrical Steel Pvt Ltd." I submitted my resignation letter on 2nd July 2013 and served a one-month notice period. My Assistant General Manager (AGM) HR did not provide any written acknowledgment but verbally accepted my resignation and the leaving date, which was the 31st of July 2013. During my tenure, I contributed significantly to the company, handing over all my duties and responsibilities to my juniors effectively.

However, on my last working day, the director behaved inappropriately towards me, stating that they would not pay my last month's salary along with other deductions. Despite my attempts to communicate verbally and in writing with the company, the director has refused to release any amount owed to me. As a result, I am considering taking legal action in this matter. The outstanding salary due to me amounts to 70,000 INR.

Please advise on the best course of action in this situation.

Before you proceed with the adjudication process, I recommend that you approach the labor officer in your area. Bring along proof of correspondence. If you feel that you have not received justice, you may consider sending a lawyer's notice. If the employer remains adamant, you may file a suit for your rightful wages.

All the best!

Regards,
Dinesh V Divekar

I totally agree with Mr. Dinesh's statements, and you need to have proper evidence related to this issue before you jump into legal action. Secondly, do not mention your company name specifically. It is better for you.

Thank you for your reply. Further to this matter, I submitted my resignation letter and requested the HR department for its acceptance. However, they did not give it to me, stating that nothing was going wrong with me up to that point. I had been performing well during my notice period, so I was confident that I would receive my salary, despite the fact that previous employees did not receive their dues. On my last day, I called a meeting to inform all staff about ongoing projects and tasks. After addressing all relevant matters, my director took note of important information and then began to behave poorly towards me. Moreover, he refused to provide transportation home, even though I typically had a car for pick-up and drop-off.

He threatened not to pay my salary, claiming that there were still pending payments from two parties. I argued that I had brought in many new customers and business, offering to personally recover any outstanding payments and then receive my salary. However, he persisted in his refusal. There was no condition in place stating that my salary could be withheld due to pending customer payments.

I am willing to settle the due payments with my customers, as I have a good rapport with them. Nevertheless, I am unsure if my employer will honor my salary, given the unethical behavior of this individual who also lacks a positive reputation regarding employee satisfaction in the market.

I did not receive any written confirmation of my resignation or acceptance of my departure from the company. Additionally, the company does not provide benefits such as casual leave or paid leave, indicating a lack of HR ethics. I composed an email to the Managing Director, expressing my financial difficulties with EMI payments and the impact on managing my family's needs this month, but I have not received a response. The HR department appears to be powerless, as they are obligated to follow the director's directives.

Please advise me on the appropriate course of action to address this situation.

Importance of Written Communication in Resignation

Verbal acceptance is not enough. As you have given your resignation in writing, you must obtain written approval for that. Here, your employer has an advantage over you, as they claim they haven't approved your resignation. If you still choose to leave without their approval, they may refuse to clear your dues and final settlement (FNF). Therefore, as a professional, ensure all communication is in writing.

Initially, discuss the situation with the current HR to understand the issue and why they are reluctant to relieve you. Check if there are any pending tasks from your end. If cooperation is still lacking, consider contacting the labor office to explain the situation in detail.

Regards

To Couvery,

As I understand, written approval is required. In a case where the company doesn't provide such confirmation, what should be done? They have been doing this several times with past employees. I submitted my notice period for the sake of my image in this industry. However, it was unexpected that my salary would not be released, especially considering my work and achievements.

Reasons for Resignation

The main reason for resigning from this company was job security. I have observed that they are not willing to retain high-salaried employees for the long term; they seem to only want to utilize their knowledge and references for about a year before starting to mistreat the employees.

Given this situation, is there any action I can take to obtain my salary? Please advise.

Thank you.

Usually, at the local level, some companies engage in practices of withholding employees' salaries. I would suggest you consult a local lawyer in civil court, as this case may not be entertained by the labor office since you were working in a managerial position. Please send them a legal notice mentioning the outstanding amounts to be cleared. Before sending the legal notice, send a formal letter regarding your pending clearance via registered post to their HR department, with a copy to the director, and keep the dispatch receipt with you. Give them 5-7 days to initiate action, and if you do not hear from them, then send the legal notice. Ask your lawyer to raise an industrial dispute claiming the pending amount and mental harassment claims as well.

Ensure everything is in writing, which will further help you. Most employers who do not comply with statutory obligations prefer to avoid such cases and resolve matters upon receiving no response.

Actually, it's people, product, and profit. But most organizations only focus on profit and never care for their employees. After reading the above blogs, I think that your company doesn't follow any ethics. Most companies also accept verbal resignations, so it depends on the company's policies.

Kindly keep all copies of the written proof from your side, as suggested by Gaurav. Approach the labor officer in your area. If the matter is not resolved, take the company to court. Don't stay silent, as 70,000 is not a small amount. If you remain quiet, the company may treat other employees in the same manner tomorrow. It's time to teach them the right lesson.

Thanks,
Varun Jha
HR
[Phone Number Removed For Privacy Reasons]

This fight will take a long time. Please keep all your documents and emails properly. Approach a lawyer quickly as this is a fresh incident, and if the company gets enough time to think, they will find many reasons to justify what they did. Do not discuss this matter with any of your colleagues who are still working in the company. Keep all your moves between yourself and your lawyer. Although the police may not register this case, appoint a lawyer, and with their suggestion, you can approach the Labour Officer.

Thanks

Please collect proper documents, correspondences, and other evidence. Consult a lawyer and ask them to draft a post that could be shared on Facebook, Twitter, or other social media platforms regarding the treatment received from this company and its director. Post it on all social networks.

Please ensure that the post conveys everything accurately but remains legally sound so that they cannot file a lawsuit. Of course, you may give them a chance to respond or settle matters before posting the details online.

Best Regards,
Divakar

Please correct me if I'm wrong. Posting on social networks will fetch him nothing, and it also does not sound good on either side. The fight is between him and the company, and for that, he has to approach the labor court. Showing anger on networking sites is not the right solution. It's not professional. It also brings down the character of the company and shows that the person is not highly mature.

Thanks,

Varun Jha

Varun, he has to raise this in the proper forum to get his dues. Posting on social networks makes people like you and me aware of these types of companies and people. His customers would know about his ethics, and other present and prospective employees will be cautious. Social networks can really shape opinions that may deter many others in the future. Perhaps his dues will be settled if he communicates his intentions properly to his employer before posting on social media.

Legal Action Consideration

Do you think he will receive timely justice if he goes to court? Just consider the Durga Shakthi case where the courts refused to support her. I am unsure of the evidence he possesses; unless it is strong enough, pursuing legal action could be a futile, expensive, and time-consuming process.

As they didn't give me a relieving letter or an acceptance of resignation letter (they confirmed it verbally and regretted to give written acceptance), could this issue create problems in my current job?

Now that you do not have acceptance on paper, make sure that whatever correspondence you are having now works in your favor. In the emails you send, do not forget to mention that you have served your notice period based on the oral communication you had with them earlier. Additionally, if possible, get in touch with the employees who had to quit and did not receive their dues. Ask them to send an email to you stating the grievances they faced. Try to record the conversation if you have one with them. Act swiftly in case your employer becomes aware of your plans. They may issue a termination letter stating that you have been terminated on certain grounds or that you are a no-show.

Please let me know if you need any further assistance.

Thank you.

I am Nitish. I am also going through the same situation. I gave a proper resignation by email. After that, I served my one-month notice period as per my agreement. During the course of my notice period, I was traveling and handling business. They were continuously insisting that I should not leave. They were offering me a good hike, but I wanted to move on as it had already been 4 years, and I was seeking better opportunities. My director even threatened me, saying he would tarnish my image in the industry and mentioned deducting an amount for canceling my international flight scheduled for June. Despite this, I didn't respond. Now, after joining a new company, when I contacted HR, she is ignoring me and stating that as per the contract, employees are not allowed to join competitors, even though many employees have done so in the past. It seems that my excellent performance is now becoming a problem for me. My salary for one month and six days is pending, and I have 30 earned leaves due.

Kindly advise if they have the right to withhold my salary. They only hire people on a contract basis with no PF or other benefits, only TDS deductions.

Best Regards

Dear Sir, I was working as an Administration Manager in one of the listed companies until December 2018 for a year. I left because the company had been experiencing losses for a few years and had no production output due to an internal financial crisis.

My first month's salary was paid in the third month and gradually increased in the fourth and fifth months. My social life was being disrupted, but I patiently carried on. I resigned, served the notice period, provided a proper handover, and completed relieving formalities as per company policies. My last relieving date was January 5, 2019. However, I have not yet received my experience letter or relieving letter.

I received two months of outstanding salary by April 2019. I am still following up with my seniors for my December 2018 outstanding salary and full and final settlement to date. Despite writing several emails, making phone calls, and sending WhatsApp messages to my seniors and director, they are not responding. They read all my messages but do not respond.

Please guide me. During my service period, I had borrowed money from lenders to maintain my social life and am still paying interest as I did not receive my salary on time. I would be highly grateful for your help.

Thank you.