Facing a Dilemma: Should I Settle or Take Legal Action Over My Termination?

My last job was terminated by the company due to an experience letter problem, and the company sent me a termination letter in the same month in 2011. But now they are sending a warning letter to do the full and final settlement. Even the communication address they are using is not associated with me as I have left that rented house.

Prior to my termination, the company had given me 10k as travel allowances for training, which I spent during the training time. I applied for this through the HR portal, and it was approved by my manager. They are holding one month's salary, and despite that, they are asking me to return the amount.

In the letter, they have mentioned that based on your resignation... Should I agree with them, or should I lodge a complaint in the Labor court? Please advise.

Thanks,

Regards

When an employer initiates separation, the full and final settlement is typically managed by them. In fact, the employer pays remuneration for undue termination unless it's due to gross non-adherence or non-performance. Your employer asking you to pay after termination seems highly dubious. Could you please state the reason for termination and why they are asking for a refund from you?

A request, please switch your post to anonymous mode to take this discussion ahead. Thank you once again for sharing your situation with us. Let's brainstorm a solution.

Separation Process and Experience Certificate Issues

The separation process takes place strictly as per the terms of employment and not at the whims of the employees or employers. You have not exactly mentioned what the problem was with your experience certificate. Assuming it had a major discrepancy, the company can ask you to leave. In that case, you do not have a strong case to move to the labor court.

However, when an organization with highly mature people practices asks people to leave, such recoveries should not be affected—unless the employee has really created havoc with the business. We would never do that.

Regards,
PG

Thank you for your reply. The termination was due to an experience letter issue that I could not produce. After termination, they sent me a termination letter. However, in the Full and Final email, they have mentioned, "[As per your resignation.......]".

I have contacted them to address this issue, but the HR department is not responding to me. They have only sent an email requesting a deposit of 8000 rupees to clear the Full and Final settlement.

I have requested a copy of my resignation letter, but they have remained silent on that matter. Additionally, their settlement offer is not appropriate as they have included a notice lieu (3000) and travel allowances (5000).

Next Steps for Resolution

If they continue to ignore my emails and calls, how can we discuss and resolve this issue? Should I consider filing a case in the Labor court? They have mentioned in the email that if I do not pay the recovery amount, they will take legal action.

Please provide your advice on the next steps.

I suppose you already received the copy of the full and final settlement. If you feel that the amount your employer is asking you to pay is not justifiable, you can file a complaint with the Labor Commissioner. Also, if you believe that the employer owes you money, you can address that as well.

If you perform your job competently, no employer should terminate you simply because you do not possess an experience certificate. If you can provide valid reasons, it should not be a cause for dismissal.

Hi Dashn, when you mention that you cannot provide an experience letter, we encounter an issue in finding a solution. Even if you take this matter to the labor court, they will inquire about this issue and possibly ask more questions.

Regards,
Janani

As I understand, the non-production of an experience certificate is the root cause of your termination. According to you, the management is trying to convert it into a resignation—am I correct? If the alleged resignation was already accepted and acted upon in 2011, how is it that the management is now asking you to remit the dues towards notice and others? The details provided by you are incomplete and unclear.

I hope this helps. Let me know if you need further assistance.

Taking Travel Advance/Allowances - When we need to take a travel advance, we must submit the bills within the stipulated time (e.g., within 7 days of travel completion). Merely spending the travel advance is not sufficient to settle it. There will be an advance in the books of account that needs to be settled, and I believe that the advance is still in your name. If possible, please submit the bills if you have not done so already.

Termination/Resignation

You stated that you have been terminated (in this case, you should have a termination letter), but your employer is treating it as a resignation. I request you to go and meet your ex-boss and the concerned HR manager to present all documents to resolve the issue. Before meeting them, you should respond to their letter to the HR Department, cc'ing your ex-boss, and attach a copy of the termination letter as well (send it by registered post).

Withheld Salary

In your response mentioned above, please demand your one month's withheld salary. They may adjust your travel advance with your withheld salary.

I believe there is a communication gap between you and the HR Department of your ex-employer. Please meet with them, discuss all the issues, and resolve them.

I am not an expert in HR-related issues. The information provided is based on my knowledge.

Regards

Location and Employment Verification

Please state your location, whether in the United Kingdom or in India. Regardless of your location, you have failed to prove that you possess the experience you claimed on your resume. Typically, in every appointment letter, it is stipulated that your employment is contingent on the accuracy of your representations and the documents you provide. If any discrepancies are discovered in the future, your employment may be terminated immediately without prior notice.

It is essential to understand that your employment is based on the information you provided, and if you are unable to substantiate it, your termination may be legally justified. When you were unable to validate your experience, the assumption of false experience may work against you, and the termination could be deemed valid.

Entitlement to Full and Final Settlement

While the situation regarding your experience is unfortunate, your entitlement to a full and final settlement remains. The company withholding your salary cannot demand payment from you before settling your dues. This practice is incorrect on their part, and you have the right to enforce the settlement. The delay from 2011 until now in processing your full and final settlement is unreasonable. They should have offset any amount owed by you and paid you the remaining balance.

Approaching Labour Authorities

You have the option to approach the Labour Commissioner/Authorities to address this matter. However, this action carries risks, as if the balance is negative, you may be required to make a payment. If you are confident that the company owes you money, then pursuing recourse through the Labour Authorities is appropriate.

I hope this guidance assists you in making an informed decision.