Full And Final Settlement [Thread 490798]

Hi,
I resigned from a large gurgaon based Indian company 2 months back, as Assistant General Manager-Sales & Marketing, after working for 6 years with the company (I was an individual contributor with no team). In my full and final settlement, the company is not adjusting my leftover leaves against my balance notice period. To be precise, I had 80 leaves leftover. As against my 3 months notice period, I served a 22 days notice period. So while doing my full and final settlement, the company is crediting me for basic salary for 80 leaves, & they are deducting basic+hra for the notice period not served, i.e. 68 days. I find this unfair. Can somebody please advise me how I can challenge them. Can I complain in the Labour commissioner office of Gurgaon ? Your Valuable inputs will be highly appreciated..

The Co should have paid you salary for 12 days to be fair.But you cant go to labour commissioner as you are not a workmen and the issue now is not an industrial dispute.
Varghese Mathew
09961266966

Dear Mr. Varghese, Thanks for your valuable input. Can you also pls advise what I can do now. How can I challenge the employer, & get my hard earned money out of them ?

You can make complain to Labour Department No matter what was your position in your company. At least Labour Officer can give you proper guidance and option. If you will not be satisfied from Labour Department you can take legal suggestion from Advocate who fights labour related case. On line site also available to help You and guidance. In your case make sure you ware not signed company policy in which Full and Final Settlement procedure given, as now giving to you. Before taking any legal action must send a letter to company for full and final settlement figure with your opinion and ask answer in written.Why they do not agree with you.

I have exchanged about 30 emails with them. Finally they have responded that the full and final settlement is done on basis of company policy. Yes, beginning of every year they did use to get 10-pager policy document signed from all employees. Also, my appointment letter does not talk of the leave adjustment, or how the shortfall in notice period will be treated. They are telling me that my request for leave adjustment against notice period has not been approved by them internally-this they have finally communicated on email after avoiding the direct answer in about 30 emails..

In some companies the leaves are not adjusted against the Notice Period/Pay, The same has happened in your case too, they have taken your 80 leaves Basic as Leave Encashment towards your unused/leftover leaves and adjusted 68 days gross pay against the shortfall of your Notice Period/Pay, I hope you have understood and helped you in resolving your query. Please speak to your HR before heading to any complaints/Legal.

Yes this is what they have done. They have credited basic salary for leaves and deducted basic plus hra for notice period recovery. They are citing company policy for doing this. However I find this unfair and unethical. But what I want to know is that is it in accordance with labour laws. Only if they are in violation of lawwould I want to explore legal action..

Labor Law does not speak about Encashment to be paid on Gross/Basic. Here Legal will not help. This is my view lets wait for seniors to respond.