Concerned About Notice Period Buyout and Final Settlement Delays – What Should I Do?

I have resigned from my previous organization after 1 and a half months. I had a 3-month notice period, but they relieved me after 1 and a half months. Initially, they were asking for the full amount for the notice period buyout, but then suddenly they relieved me. I have received my Experience and Relieving letters. In my relieving letter, they have mentioned the following: "This letter is being issued subject to final clearances from the finance department." However, the finance department personnel was not present on the day of my relieving, and HR has informed me to proceed without the finance clearance.

I am concerned whether the company will create issues and request notice period buyout money for the remaining days of the notice period. Additionally, I am unsure about when the full and final settlement will be completed. HR mentioned it will happen after 2 months, which is after the 3 months' notice period. Could this potentially pose a problem for me?

Thank you.

I have resigned from my previous company around 1 and 1/2 months ago. I had a 3-month notice period. Initially, the company was asking for the full buyout amount for the remaining days, but last week they relieved me all of a sudden. They provided me with Experience and Relieving letters. However, in my relieving letter, they have mentioned, "This letter is subject to final clearances from the finance department."

On my last day, the finance person was absent, and HR informed me that I could leave that part and issued the letters. Now, my queries are:

1. Will the company ask for the notice period buyout money for the remaining days in the Full and Final Settlement?
2. Does the company need to explicitly mention that the notice period buyout money is pending?
3. When is the Full and Final Settlement normally done? (after how many days of the relieving date)

Do I need to consult a lawyer here?

Thank you.

Normally, unless you had asked for relieving earlier, the employer could not have relieved you after one and a half months. Having given you certificates, now if the employer asks you for a buyout period, tell them about the above position. Furthermore, if you had asked for early relieving, then the employer has the discretion to waive off the notice period. For the period within which the F&F is done, kindly refer to the state shop and establishment Act. Additionally, having relieved you means that the contractual dues are settled.

Thanks,

Sushil

What I can understand from your post is that the employer has ostensibly waived the notice period. Who in the chain has signed your relieving letter? My understanding is that the employer has left an ambiguity to claim the notice period payment if they want.

Notice Period and Relieving Letter Clauses

Including such a clause in a relieving letter is arbitrary. It is the function of HR to specify the notice period and the amount payable in lieu, if any. Subsequently, HR must calculate the amount recoverable concerning salary. The Accounts department has to specify other dues payable by the company at the time of full and final settlement. Waiving the notice period, which has been done illegally in the present case, must be addressed before the contract of service is terminated. Other dues have to be paid by the next day as per the relevant Acts. One cannot leave things unresolved beyond these specified periods.

Thanks,
Sushil

Initially, after my resignation, I verbally requested an early release. However, since they asked for the full amount for a 1-month buyout, my new company was not ready for the same. I have conveyed to them that I am ready to serve the entire notice period of 90 days. I do have proof that I requested the last date after the 90-day notice period.

HR had signed the relieving letter, but the finance department person was not present on the relieving day.

Question Regarding Notice Period Buyout

My question is, doesn't the company need to explicitly mention the notice period buyout, if any, or ask for the same in writing from the employee?

Notice period buyout is for the employee who wants to resign and be relieved earlier. Here, you were given a 90-day notice, and it is the employer who has illegally relieved you earlier. Therefore, the question of paying any amount does not arise. If you had requested earlier relieving, HR would have asked you to pay the specific buyout amount in writing.

Thanks,
Sushil