Resolving Pending Salary and Full & Final Settlement Disputes: Legal Action & Sample Letters

Hi Farooq,

My previous employer is processing my Full and Final settlement. I was relieved from the service in July 2013, with experience and a relieving letter in hand. They had agreed to pay the salary, but now when I am following up, they are just pushing it. The estimated F&F balance is around Rs. 55K.

Kindly let me know what I need to do, and is there any timeline within which I need to file a complaint? Also, please let me know how much time it will approximately take to resolve this legally.

Thank you,
Farooq

Dear Farooq,

Don't be in a hurry and have nothing to worry about.

First of all, send an application to your previous employer and request that you worked there from such and such date to such and such date. You resigned on that date and were accordingly relieved on that date with an experience letter and a relieving letter. However, your FnF settlement has not been completed to date. Kindly settle the account at the earliest. Don't forget to mention your complete and correct address in the letter, along with your mobile number. This letter should be addressed to the Director of the company and sent only through Registered AD Post. Keep track of the post until it is delivered.

After the delivery of this letter, wait for 15-20 days. Allow them some time to take action on their end.

If they do not reply within 20 days, send them a reminder letter. Clearly state that you had previously sent a request on such and such date, which was delivered to them on another date. After 20 days have passed, and you have not received the settlement cheque, mention that if your account is not settled within 15 days of the reminder letter, you will proceed to the Labour Department to lodge a complaint, for which they will be held responsible, and they will be liable for the associated costs.

If they still do not settle your account, you can approach the labour department and claim your FnF along with interest in the complaint.

Hope this guidance helps you. Stay happy.

There may be reasons for not paying the amount. They have given you the relieving letter as well as agreed to settle the account. Do not think immediately of going legally. As long as they have followed the method of relieving you, the payment will have to follow. Send a letter to the MD/HR citing the relieving letter and the oral assurance given to you for the settlement and request them to pay the money at the earliest. In my opinion, there may not be any difficulty in getting the money except if it is delayed. Send the letter by Registered post.

A similar problem is mine. They paid my pending salary, but for the last three months, they didn't pay my leave encashment. Sir, can you please advise and provide me with a sample letter format? That would be so kind of you.

Culinary regards,
Chef Nazmul