How Should Employees Handle Delayed Full and Final Settlements Due to Company Closure?

Case Discussion: Full and Final Settlement

I want to discuss a case regarding full and final settlement:

One of my friends, who was working as an Area Sales Manager in an MNC, left the job in December 2013 due to the closure of the business in India. As the business shut down, the company gave one month's notice to everyone and promised to provide settlement within a month.

The business head is arguing about releasing the full and final settlement payment, stating there is some payment pending from his distributor's end. The business head insists that the payment will not be released until they receive the full payment from the distributor.

My question is, when the business head was aware that payment was pending from the distributor's end, he should not have asked the employee to leave the job.

The company decided to back out, so why is an employee suffering? Today, when my friend called his ex-business head, he rudely disconnected the call, saying, "Do not waste my time. The payment will be released after we receive the money from the distributor."

I am surprised that the regional manager's full and final payment was released, while my friend's settlement is still pending. Similarly, 3-4 other Area Sales Managers, whose payments from the distributor were pending, received their payments on time.

In this case, we need your help. Please suggest.

Regards,
Reeta Rawat

Dear Senior,

Greetings of the day. I want to discuss a case regarding full and final settlement:

One of my friends, who was working as an Area Sales Manager in an MNC company, left the job in December 2013 due to the closure of the business in India. As the business shut down, the company gave one month's notice to everyone and promised to provide settlement within a month.

The business head is arguing that the full and final settlement payment cannot be released as there is some payment pending from his distributor's end. The company will not release the payment until the full payment is received from the distributor.

My question is, when the business head was aware that the payment was pending from the distributor's end, he should not have asked the employee to leave the job.

Here, the company decided to back out, so why is an employee suffering? Today, when my friend called his ex-business head, he rudely disconnected the call, saying, "Do not waste my time. The payment will be released after the money is received from the distributor."

I am surprised that his regional manager's full and final payment was released, but his settlement is pending. Similarly, there were 3-4 ASMs whose payments from the distributor's end were pending, but they received their payments on time.

In this case, we need your help. Kindly suggest.

Regards,
Reeta R.