Struggling to Get My Final Pay from a Past Employer – Any Advice on What to Do?

It has been over 5 months since I resigned, but my previous employer is yet to clear my full and final amount, excluding the PF. I have tried contacting them many times, but they seem to be least interested in it. Kindly suggest an approach as my full and final amount, excluding the PF, is also huge.

Please escalate as employers are required to clear F&F within 45 days per law.

Hi, it has been over 5 months since I resigned, but my previous employer has yet to clear my full and final amount, excluding the PF. I have tried contacting them many times, but they seem to be least interested in it. Kindly suggest an approach as my full and final amount, excluding the PF, is also significant.

Approach for Full and Final Settlement

By what method are you communicating or following up for F&F with them? What are the responses/answers as to why they are not providing you with the F&F? Have you visited them personally to inquire or find out what the problem with the F&F is?

I suggest you visit them personally and try to determine the actual reason for the delay first.

I left my previous organization 8 months ago. I did not serve the full notice period, which is why they did not issue any experience letter. I contacted the concerned HR for the full and final settlement, and I am ready to pay the notice period recovery amount, but they are asking me to pay in cash only. I asked them if I can pay by cheque or draft, but they are not willing to accept any form of payment except cash. The concerned HR is located in Bangalore, and I used to work in the Kolkata branch office. They are instructing me to deposit the cash amount at the Kolkata office.

Payment Method Concerns

My question is, is this the only payment method the HR is insisting on? I am unsure why they are not willing to accept a cheque or a draft. Please guide me on what I should do as I am eager to complete my full and final settlement.

Thank you.

Firstly, a cash transaction is not necessary for the recovery in lieu of the notice period. Secondly, the organization can recover all dues from your full and final settlement if it is a term and condition of your services to serve a notice period of one or three months, as the case may be. You can send them a notice through an advocate and clarify your intention to file a civil suit against them for the recovery of your dues. Once again, I would suggest that you do not pay any cash.

Regards,
Joshi K.D.

I think you should send a registered post letter asking about your full and final settlement, and another copy should be sent to the local labor and conciliation officer.

I have also not received a month's salary from my previous employer. It's been over a year now. How do I recover that salary?

For that one-month salary, which is a rightful part that the employer has to settle with you, if your gross is less than 18,000, then you may approach the Commissioner of the Payment of Wages. If it is more than that, you can file a writ against the exploitation.

Please think before taking such action, and also try to have a final word with your employer because there is a possibility that they may frame some odd things against you. Take assistance from a labor law forum that may also help you.

Dear Santunjeev, please keep in mind that the law always requires proof many times. Therefore, please ensure that you have all the necessary documents to support your case. A plaintiff always needs ammunition.

As some have rightly suggested, consider keeping a record by sending a registered post to your company detailing all follow-ups and the responses received.

I recommend keeping the labor department informed starting from the second communication (referring to the initial email). They may be able to assist you.

Regarding Full and Final Settlement

As per my understanding, it should be completed (including Gratuity if notice is served) no later than the last working day. After the relieving date, any delay may incur interest along with the rightful amount.

If I am mistaken, I trust my seniors to provide guidance.

Please let me know if you need further assistance.

Thank you.

I was having the same issue with my previous employer (Tata Group company). So, I simply wrote an email to my CEO, and my FNF was released within 3 days. There are always ways to find a solution, except through legal means.

As per the law, a minimum of 45 days is required to clear the F&F settlement. If, in your case, it takes longer, you should consult with the HR department regarding your settlement. Find out why it was delayed and whether all your dues (like loans, etc.) from your previous job have been cleared.

Important Considerations

One important note is whether you served a one- or two-month notice period and whether your resignation was proper. All these aspects should be communicated to the HR department. Everything should be taken into consideration. In my point of view, you should first consult with your previous HR department before taking any steps.

Regards

Normally, upon termination of employment, wages and all other settlements should be paid within two days of termination. If you have not received the same, send a registered letter to your employer to request immediate payment with interest at 12% per annum within 15 days of receipt of your letter.

If no reply is received or payment is not made as stipulated, escalate the issue to your area labor commissioner. If you are not satisfied with the results from the labor commissioner, consider taking the matter to court.

Thank you.

I am having a problem with my previous employer regarding my PF claim. I left the company 3 years ago and sent the claim form 4 months ago. However, I have not received any claim in my account yet. When I contact the HR person, he mentions there is an issue from the bank's side. But when I check the claim status on the EPF site, it says "No record found." Therefore, I am unable to understand whether the HR has initiated my PF claim or not. Despite asking them, they provide odd excuses. I have also emailed the company's GM multiple times, but no one is replying. I don't know what to do. Kindly guide me.

Thanks & Regards,
Shiv

There are two queries in this thread. One is about final settlement and the other is about PF transfer or settlement. Let me address PF first and then Final settlement.

1. PF Settlement

It is a procedural requirement that an employee needs to forward their application through their old employer. If they do not forward it in a reasonable period, say 7 to 10 days, send a letter to them and mark a copy to the PF Commissioner. You will get addresses from the website. If they still do not send it within the next 7 days, lodge a complaint with the PF Commissioner. Keep all copies with you. If there is no action for another 15 days, send another reminder to the Regional Commissioner. If there is no response within 15 days, send a complaint to the Central PF Commissioner. The entire process should be completed within 60 days. I have personally seen this working in many cases. I have received communication from both the Regional and Central Commissioners. If an employer does not respond, an Inspector comes for an inspection.

2. Final Settlement

There is no law that says the settlement shall be made within 45 days. At least I am not aware of any. But gratuity shall be settled within 30 days. In the case of termination, settlement shall be made within two days. Wages for a particular period shall be made within 10 days of the closure of attendance. Hence, one can reasonably presume that a delay beyond thirty days is unreasonable.

Some companies have the practice of insisting on a "No Due Certificate." Please insist on this certificate if there is no such practice. This must be given by the employer on the day they get relieved. If you have a certificate with no dues, your balance will have to be settled immediately. If they do not settle, then send a letter to the CEO and request their intervention. If you do not get a response, then lodge a complaint with the Payment of Wages Authority. This is normally the Assistant Commissioner or Deputy Commissioner of Labour of your region. You may assign this job to an advocate who normally charges between 10% and 20% as fees. I am aware that many times this delay is caused due to a lack of urgency. Lack of coordination between HR and Accounts is also a reason. In some cases, the operational Head would have stopped this with Accounts and they do not give clearance certificates easily.

In short, get a No Due Certificate before getting relieved, wait for a month, then send a reminder to the CEO, wait for a week, then lodge a complaint with the Payment of Wages Authority. This will generate pressure for the employer to close the issue faster.