Resigned Before Receiving Salary Arrears – Can I Still Claim What I'm Owed?

I received the letter for the revision of salary on August 08, 2013. The letter was dated July 01, 2013. The revised salary was effective from April 01, 2013. Before receiving the credit for my salary in arrears, I submitted my resignation. Upon learning this, the HR department refused to give me the arrears of my salary. Additionally, they refused to increase my salary for the remaining period. Please let me know if there is any way to get the arrears of my salary.

Thank you for your prompt reply, but let me explain my position. I am not a new joiner. I have been working with the organization for 2 years. The salary revision I am referring to is the annual performance appraisal. Please guide me.

As per the law, you are definitely eligible for the revised salary. However, the main point is that the date of issue of the increment letter is not important; the effect of that revised salary is the main thing. You should directly address the management's decision. After all, the management is the heart of the organization. Therefore, you just need to talk to the management regarding that, not more than that. However, the management will not play a role like that.

Regards,
Dipal Patel

Well, I would say that there's no law that allows you to claim the arrears; it is solely a management decision. If the management agrees on the same, there is no legal recourse against them.

Yes, there is no law for the reversal of arrears, but it depends on the management policy.

Please let the forum know when you received the salary revision letter, whether you were on the notice period or you resigned after receiving the salary revision letter. Also, let us know how it matters if the salary revision arrear is not credited to your account as you have already decided to leave the company. I mean to say, what if you had not received the salary revision letter until the last date of your employment, and what if your salary had been revised? Would your decision to leave the job change? If so, have you communicated this to HR, and if yes, what was their response?

Most MNCs and professionally-owned companies do not refuse to pay the salary revision.

I do not think there is any law (particularly in the private sector) that defines whether you should receive it or not. In government sectors, whether at the central or state level, it is applicable. Employees receive arrears not only after leaving but also after retirement.

As per my personal opinion, they should provide it because they have declared this and informed you by letter. However, ultimately, it depends on the management.

If the management issued you a letter of revised salary effective from 01.04.2013 on the date 01.07.2013 and you resigned after this date, but until now, the management has not issued any letter to cancel the previous one, you can receive the arrears salary from April 2013.

I understand from the foregoing problem posted by you that:

1. You were a permanent employee on the roll of the company/establishment referred to.
2. The pay scales were revised with effect from 1.4.2013, and you tendered your resignation thereafter, remaining in continuous service until the date of acceptance of your resignation.

If the above statements are true, you are certainly entitled to the arrears arising from the revision of pay. You just need to get a copy of the revised pay package deal/agreement. There must be something mentioned in the order about applicability, such as to whom this revision would apply and to whom it would not. I presume that it must have been mentioned that the revised scales of pay shall be payable to all those who were on the roll of the company on 31st March 2013.

I am sure you will benefit from the pay revision. Good luck and best wishes.

Regards,
AK Jain
HR Personnel
NCL, CIL

After reviewing the letters exchanged between HR and employees, it appears that HR is on the wrong path. It would be advisable to move to the labor court to resolve the issue.

Any pay revision is an honorarium for your performance and a company policy to retain talent. Pay revisions do not happen by chance; they are based on job performance and the company's talent retention policy. Once you have decided to resign, in my opinion, you forfeit the opportunity for a salary revision since you are not continuing with the company. There is no possibility of an escalation in your salary when you have chosen to leave the organization. This practice is common in most organizations. However, if they have already released arrears and you resign subsequently, they may not retract the payment.

Wishing you good luck.

Regards

Let me know how the salary revision was communicated. Was it via a common order mentioning each and every person listed, or was it through an individual letter, and what is the mode? Is there any communication/record in your custody to show how the revision has been arrived at? Unless you have documentary evidence mentioning your name and the details of the salary revision, it is difficult to claim it as a right, especially when it is linked to performance, etc. Unlike the government sector and other such private sector employers, time rate annual increment and granting periodic wage revision in most private firms are not a right. If you have a Union, you may try through them as well. As a first step, you may send a written request to them to release the arrears. Have you been relieved already? If so, what was the LPD (last pay drawn), and what is the revised or pre-revised amount?

I am writing to address your grievances regarding the legal notice sent to the company demanding your legal dues at a revised rate. In the event that the company fails to comply, you have the option to seek redressal through the appropriate court.

For further information, please contact me at [Email Removed For Privacy Reasons] or on my mobile at [Phone Number Removed For Privacy Reasons].

Thank you.

Sincerely,
Regards