Stuck Without My Final Pay: How to Handle Delayed Settlements and Threats from Employers?

Hi, I am currently facing a major issue with the organization that I served for 3 years. I gave 2 months' notice, handed over all documents, and after the last working day, the next day they tell me that the Full and Final settlement cannot be cleared immediately because:

1. I will need to wait 60 days.
2. They claim a client still needs to clear their outstanding balance, and unless that happens, they will not clear my outstanding amount.
3. They are threatening me with goons and beating me with slippers if I don't receive the payments.
4. They also said they will not clear my Full and Final settlement if the client does not come in front of them or clear their payment.

Tell me, it's a corporate account, what can I do if the client does not pay? I am in Business Development, and we have a separate accounts team handling all this, but still, they are not releasing my Full and Final settlement now.

Assuming you have given the correct and full information, the action on the part of your employer is illegal.

Full and Final Settlement Timeline

Full and final settlement has to be done within 30 days. Out of that, salary/wages have to be settled within 2 days from the last working day.

Legal Implications of Threats

It is a criminal offense to threaten someone with bodily harm. You can file a complaint with the police. However, if you go without evidence, the police may not take it seriously.

Conditions for Withholding Salary

The salary of an employee cannot be held back on account of non-payment by the client, unless the employee is the reason the client is not paying, or the account was acquired by the employee in violation of company rules or any action amounting to misconduct related to that non-paying account. Was there any clause in your terms of employment making you responsible for collecting payments?

Assuming you have given the correct and full information, the action on the part of your employer is illegal.

Full and Final Settlement Requirements

1. Full and final settlement has to be done within 30 days. Out of that, salary/wages have to be settled within 2 days from the last working day.

Legal Implications of Threats

2. It is a criminal offense to threaten someone with bodily harm. You can file a complaint with the police. However, if you go without evidence, the police may not take it seriously.

Salary Withholding Conditions

3. The salary of an employee cannot be held back on account of non-payment by the client unless the employee is the reason the client is not paying, or the account was acquired by the employee in violation of company rules or any action amounting to misconduct related to that non-paying account. Was there any clause in your terms of employment making you responsible for collecting payments?

No clause is there; however, they want me to get the client in front of them, or else they will not release their claim. Also, I have recordings done on my mobile while they threatened me the second time. They don't want to take back the laptop and mobile SIM, saying they are not releasing me. Later, I hope they don't trap me by saying another story is my concern. I had handed over the laptop and SIM; then they asked me to work another 10 days, but they have not given me this in writing. Again, I have the recordings done. Also, they keep telling me of serious consequences if the client does not pay.

Please assist me in getting out of this muddle and how to handle this situation.

Regards.

It is good you recorded their threat. You can now go to the police and file a complaint. The recording is adequate evidence. However, most people have had bad experiences with the police, so don't expect much help unless you have some influence or know important people. It is important to file an FIR so that it is on record and will be taken into account in case of any incident or if the company decides to file a complaint against you.

Regarding the company assets, send a registered letter informing them that you have offered to return their assets, which they have refused to take back. Further, state that the assets are in your custody and you are willing to give them back as and when they wish to take them. However, go with adequate witnesses when you return the assets and make sure to obtain acknowledgment.

Furthermore, I would suggest you file a complaint with the labor commissioner's office regarding the incident of harassment and non-receipt of salary.

Facing Employment Termination and Final Settlement Issues

Currently, I am facing a major issue with the organizational boss that I have served for 3 years, and I am still working with the organization. I am working as a Store Incharge at the retail outlet. Recently, an auditor conducted an audit of the store and found that the shrinkage had increased compared to the previous audit. The audit report was then emailed to my operations head.

The operations head clearly informed me that if the shrinkage continues to increase in the coming month, he will terminate my employment and take legal action against me. He also mentioned that my final settlement may not be cleared, and any shrinkage amount will be deducted from it.

According to him, I am the face of the organization and the outlet, so I am held responsible for any shrinkage that occurs in the outlet, whether by me or my staff, as I am the Store Incharge. He also warned me that I am on notice, and if the shrinkage increases, I will be terminated without receiving a relieving letter. During this period, I cannot resign from my job and disappear without notice to my superiors.

I have expressed to my seniors that I do not see a reason to be absent or go on the run as I believe I am not at fault. However, I am now seeking advice on what steps to take if I get terminated without receiving my final dues.

Regards,
Sham