Facing Unpaid Dues After Termination: Should I Consider Legal Action?

I was terminated by a company two months back, but they didn't issue me any termination letter. They sent me a formal email to hand over all the tasks to them. It is a startup company with no HR. In the email, they agreed to pay my last month's salary, my dues which were pending for the last 4 months, and a 1-month notice period as well. However, after the handover, they started troubling me for my money. Now, they are not even paying me my full salary and dues. They are asking me to sign a resignation letter in which they mentioned my last day of working as the 15th, but my actual last day with them was the 23rd. The letter also states that I asked them to waive off my notice period, and therefore, they are accepting my resignation, insisting that I will only be paid if I sign that letter.

I don't want to sign that letter as the things mentioned in it are not correct. They have also called me to their office twice, saying they will pay me, but then only pressured me to sign the letter. Finally, I asked them to change the date in the relieving letter, and then I will consider signing. However, they are not happy with that either. Now, they are claiming that I took too many unauthorized leaves and had performance issues, so they will not make any changes. The total amount owed to me is around Rs 65,000, yet they are only offering Rs 11,000, and that too after signing the letter.

Please advise on how I can handle this situation. Is it advisable to take legal action?

Dear KA, do one thing, as you don't have anything in writing, and they terminate you. So, put an email stating all communication that has been done between you and the company and request the full and final amount. Then, let them revert. Once they revert, just let us know what they write, so accordingly, a member will guide you in a systematic way.

Regards

There are some things unclear in your post.

1. How long were you working there?
2. What is your designation?
3. What was your salary?
4. How is the $65,000 and $11,000 worked out?
5. What was the mode of payment? Do you have any documentation like an appointment letter, etc?

Thank you, Saswat Banerjee Sir and Tushar Sir! Yes, I have an appointment letter with me. I worked there for almost 6 months in the role of Manager-IT. My salary was 30k.

I worked for 22 days in April, i.e., my April's salary is 22,000. They told me to leave and agreed that they would clear all my dues and pay for a 1-month notice. I have this confirmation in writing via email from one of the founders of the company. I paid 9,000 to one of their vendors as his card was not working, so I made the payment from my card, and the remaining 4,000 are my bills from the last 2 months.

Total: 22,000 + 30,000 + 9,000 + 4,000 = 65,000

They are calculating my salary only until 11th April and are paying me 11,000 only if I sign the resignation requesting them to waive off my notice period. Initially, they called me to the office twice for Full and Final settlement, but they pressured me to sign a letter stating they are liable to pay only 11 days' salary.

After this, one of the co-founders started following me and used to call me at odd timings. I stay in a hostel, and he would come in front of my hostel asking to go for dinner or coffee. I threatened him that I would call the police if he called me or came in front of my hostel again, so he stopped coming. (He is a very senior person, an ex-banker from a VP level position in a renowned bank, recently joining the company as a co-founder).

It is clearly mentioned in my appointment letter that if I resign, I have to serve a 2-month notice or pay for 2 months, and the same conditions apply if they terminate my employment.

When I refused to sign the letter, they accused me of working for another organization simultaneously (which is false) and claimed there were unauthorized leaves on my account and performance issues. Regarding the bills, they initially said they would clear them within 7 days if I forwarded all the bills, but later they refused to pay them as well.

The other two founders are also very senior persons. One of them was the country head for an MNC, and the other for a bank. If I take legal action against them, will it affect my career in the long run?

Please advise.

I feel in the entire above explanation, two lines are very important:

"I have an appointment letter with me."

"I worked for 22 days in April, i.e., my April salary is 22,000 and they told me to leave and agreed that they will clear all my dues and will pay for 1 month notice. I have this thing in writing on mail from one of the founders of the company."

Therefore, if you have in writing that the company will pay you one month's notice, then I mean that, on the grounds of mutual understanding, they have terminated your employment contract and are ready to pay the notice period as mentioned in the employment agreement. You may take legal action against them, but be aware, as you said, these individuals are very senior and from the banking sector, so they are definitely not fools to make such mistakes. I would suggest you seek advice from an advocate.

Understanding the Situation

I think you are a female employee. You have not stated it, but I can figure that out from some of the things you have mentioned. In case that is true, the termination and the behavior of your former employer take on a different light. The termination, it seems, is not due to your poor work performance or anything related to employment, but for your failure to respond to the overtures of your employer. The fact that you had to threaten him with a police complaint is evidence in support.

Legal Recourse Under the Prevention of Sexual Harassment Act

It would fall under the Prevention of Sexual Harassment of Working Women Act. You can initiate action against the company and specifically against the co-promoters who have been harassing you. The complaint can be made both at the local police station (there is a women's police station in Jaipur where you can go) and also to the district collector, through him to the local complaint committee.

Seeking Support from NGOs

You may talk to one of the NGOs dealing with cases of sexual harassment. They will help you through the process and also provide the counseling required to overcome the negative impact of what you have faced. I hope I am reading the matter wrong, but the circumstances indicate that is what happened.

Thank you, Saswat Banerjee Sir and Tushar Sir!

Details of Employment and Financial Dispute

Yes, I have an appointment letter with me. I worked there for almost 6 months as a Manager-IT. My salary was 30k. I worked for 22 days in April, so my April's salary is 22,000, and they told me to leave, agreeing that they will clear all my dues and pay for a 1-month notice. I have this in writing on email from one of the founders of the company. I paid 9,000 to one of their vendors as his card was not working, so I made the payment from my card, and the rest of the 4,000 are my bills from the last 2 months.

Total: 22,000 + 30,000 + 9,000 + 4,000 = 65,000

They are calculating my salary only till the 11th of April and are paying me 11,000 only if I sign the resignation requesting them to waive off my notice period. Initially, they called me to the office twice for F&F, but they pressured me to sign a letter stating they are liable to pay only 11 days' salary.

Harassment by Co-founder

After this, one of the co-founders started following me and calling me at odd timings. I stay in a hostel, and he usually comes in front of my hostel asking to go for dinner or coffee. I threatened him that I would call the police if he called me and came in front of my hostel again, so he stopped coming. (He is a very senior person, an ex-banker from a VP-level position at a renowned bank, who recently joined the company as a co-founder.)

Contractual Obligations and Dispute

In my appointment letter, it clearly states that if I resign, I have to serve a 2-month notice or pay for 2 months, and if they terminate, the same conditions apply. When I refused to sign the letter, they claimed I was working for another organization simultaneously (which is false) and mentioned unauthorized leaves and performance issues. Regarding bills, they initially said they would clear my dues in 7 days if I forwarded all the bills, but then they refused to pay them as well.

Considering Legal Action

The other two founders are also very senior persons. One of them was a country head for an MNC, and the other for a bank. If I take legal action against them, will it affect my career in the long run?

Please advise.

If you are an IT employee, you can avail yourself of the help of an association such as AIITEA or ITEC to guide and support you. Also, remember that there is strength in numbers, so instead of battling it alone, it is wise for you to take the case through an association.

[AIITEA - Home](http://www.AIITEA.org)

First, go to your respective labor office and file an application for the legal termination of services. Notify the company in front of the labor consolidation officer. Do not sign any papers.

According to the law, they are required to give you a one-month notice if the company does not need your services. Additionally, they must provide all earned leave encashment and settle all salary dues as per your appointment letter.