Ex-Manager Demands Salary Years Later: How Should We Respond to This Legal Notice?

One of our managers left in September 2011 after a service of only 90 days (18/06/11 to 15/09/11) before completing the probation period. Now, in March 2015, he has sent a legal notice through an advocate demanding salary for September 2011. What should/can we do? No appointment letter was given, only an offer letter was provided.

In my opinion, if an ex-employee has served the notice period, there is no need to hold their salary without any reason. If the notice period was not served, review the full and final settlement copy along with the relieving letter.

HR Practices and Responsibilities

As an HR professional, it is our primary responsibility to follow the right HR practices. Do not waste time on confusion between the offer letter and appointment letter. Instead, discuss the settlement with the ex-employee personally and request a resolution.

Regards,
Ashish

Understanding Debt and Notice Period Policies

First, a debt not claimed for over three years is barred under statute. Therefore, you are not liable to pay anything.

Second, if you have a policy regarding a notice period and the same is not served, and the employee has absconded, you are free to hold back his salary. If the notice period dues were more than the salary of 15 days, then in any case, there is money to be collected from him.

Speak to your lawyer and ask him to evaluate along these lines and take the next step.

Even though the claim made by the person is barred by limitation under the Limitation Act after the expiry of three years, it is up to the management to decide whether to pay the dues despite being barred by limitation, unless any deduction is to be made from the salary. After giving an offer since he worked in the company, not issuing the appointment letter is immaterial under the Contract Act or the Shops and Establishment Act.

Thanks,
Sushil

While there may not be any merit in this case, you should review your working and check why the offer letter was not issued even after more than two months from the date of joining. It is not a good HR system.