Facing Job Loss and Unpaid Salary: What Steps Should I Take Next?

Employment Termination and Salary Hold Issue

I am Avtar Singh, based in Jaipur. I was an employee of a pharmaceutical company. Recently, on April 1, 2014, my Senior ZSM informed me that the company no longer requires my services and asked me to submit my resignation. He mentioned that my March salary and expenses for February and March are on hold and will be reimbursed upon full and final settlement.

I told my Senior ZSM that if the company does not require my services, I am ready to resign, but I requested my March salary to be paid. I also asked for the reimbursement of the two months' expenses during the full and final settlement. However, he disagreed.

After that, I sent an email to my Sales Manager, HR, and MD, but I have not received any reply. In this situation, what action should I take next? I have not submitted my resignation yet, but I am currently jobless, and my salary is on hold. Please suggest the right course of action.

Regards,
Avtar Singh

Are you still reporting to the office? If not, let's get started reporting, as neither have you submitted your resignation nor have they terminated you from services. So, not reporting to the office could be a plus point for them to show it as absconding and will try to get out of it by raising their hands.

Don't give them a chance to label you as absconding. In that case, you may need to bear some notice period deduction from your dues. For your safety, send an email to them detailing all the communications that have occurred, mentioning the concerned person's name, and copy the seniors and management. This defensive move will help you avoid getting into any trouble. Once you have documented everything in an email, they will have to respond to you, either positively or negatively. This will be strong evidence for you to use in any future disputes with them.

Once you have completed this, let us know the exact situation so that our team members can guide or advise you accordingly.

As the company has already blocked the reporting side, I am not able to continue reporting. I have already informed the senior managers (Sales Manager, HR, and MD as well) through email about the verbal discussion with my immediate manager. However, I have not received any correspondence from the senior managers or the company yet.

I have also sent an email to the senior managers regarding my job status and the release of the March salary, but I have still not received any reply.

Regards.

Please continue following up with them. If they still do not reply, then send the court notice.

Regards,
Tushar Swar

I don't think it's fair on our members' part to suggest Avtar Singh go legal. He doesn't have his salary, and adding legal expenses would burden, if not break, him.

@ Avtar --

I would suggest you meet your bosses, or at least call them from another number they wouldn't identify, avoid, and submit your resignation. You can then push for an early clearing of the F&F settlement. I only hope there is no adverse report about you -- that was the reason for this situation. Meanwhile, please look for another job ASAP.

All the Best.

Regards, TS

Today, our general manager was on a visit to Jaipur. I met with him in his hotel room, and he assured me of a fast, full, and final settlement after my resignation.

Seeking Advice on Trustworthiness

In this situation, what is your opinion? Can I trust them because they have not given me my March salary and are asking for my resignation?

Thank you.

Let's look at it realistically—do you have a choice other than taking your GM's words at face value? Tell him that you are okay to resign only because he said so. If not officially, at least morally and psychologically, he will know he is responsible for getting your F&F settlement. I suggest waiting for other members too until tomorrow to give any other suggestions.

All the best.

Regards,
TS

As I believe, generally when a company asks someone to leave, irrespective of the reason, it is indirectly a termination. However, to avoid any legal controversy in the future, they often choose to obtain a resignation from the employee and present it as a normal resignation case.

In such cases, as I understand, we HR professionals follow the same practice in our corporate world. We prioritize settling the dues of such cases on ethical and legal grounds compared to other employees who have left under normal circumstances.

Therefore, in Avatar Singh's case, it is becoming apparent that the company has shown unethical behavior. Rather than settling his dues as soon as possible, they are providing false commitments and withholding his salary. I don't believe any of our HR professionals would follow such practices in any indirect or direct termination cases.

Thank you.

I am TOTALLY with you on your logic. However, most such cases are NOT 'black' & 'white' ones—they fall into the 'grey' zone, where some amount of pragmatism/reality also needs to be exercised. This case, I think, falls into this category—where Avtar's situation needs to be kept in mind. That was the reason for my suggestion.

Quite a few times, we end up bending our knees even when we know that we are right—logically, legally, morally & ethically. After all, that's life. When one is on an empty stomach, ethics don't feed him/her. But at the same time, I wouldn't say that to 'stand-up' & face the brunt come-what-may is not possible. It's just that it's tough... in fact, very tough & not many people can stand up to it. And I am saying this from personal experience.

At the end of the day, Avtar needs to learn his lessons from this experience & avoid getting into them again in the future.

Regards,
TS

I agree with you regarding the situation Avtar is facing currently. As members, we have advised him from both legal and moral points of view. Now, the decision rests with him. However, at the end of the day, only the legal steps need to be taken.

I would like to bring to your attention that if no one can answer him strongly by law, and if we now bend our knees in front of him, it may lead to feeding his confidence and unethical behavior at a higher level. In the future, he may not hesitate to repeat such actions with anyone.

Thank you.

I would second Mr. Taj Sateesh. One should bear in mind the practicality, whether the employee can afford the legal way, i.e., time and money. The company can terminate the employee by many means, which I don't think have to be told in the forum. So it is advisable to submit the resignation stating that the salary and other dues pending have to be settled within a stipulated period.

Whatever has happened is completely unprofessional from the company's side. First of all, please start looking for a new job. It will take time, but I'm sure you will get one within 2 months. Do not get disheartened. If you ask them to terminate you, it will be a scar on your future. Resign... at least you will get your dues.

All the best!!

I want to know if, as the company is asking for my resignation, there is a notice period required in my resignation email.

I want to know if it is necessary to provide a notice period in my resignation email if the company is asking for my resignation. This is important because sometimes the company deducts one month's salary in the full and final settlement if I do not mention the notice period in my resignation.

Just mention that you are willing to serve the notice period as per company norms. It's better to check how long it is so that you are not taken advantage of later. This information is usually included in your offer or appointment letter.

All the best.

Regards,
TS

As stated by Mr. Tajsateesh, please mention your willingness to serve the notice period, including the starting date and end date. If the company relieves you on the very first day of your resignation, then legally they cannot deduct the notice pay. They are obligated to pay for all the days you worked.