Facing Unpaid Settlements After Termination: Can This Employee Seek Legal Help?

Employee Termination and Settlement Issue

I need some advice. There was an employee in our company who was asked to leave due to an allegation that he took extra money from vendors working for the company. Our company is an event management company that hires many vendors to complete tasks. As far as I know, this vendor gave the money to the employee as a gift for his wedding after the successful completion of an event. This situation, in my opinion, is unrelated to the company as it occurred outside of the office.

The employee was called in, asked to resign, and sent home. Other employees are speculating that since he was highly paid and there were no events scheduled for at least a year, the company used this as a reason to terminate him to avoid paying his high salary. His full and final settlement has not been processed yet. He has been sending emails requesting his full and final settlement, but there has been no response from management. The current reason given is that the financials of one event are not closed, so they will not pay him until everything is reconciled and closed. If this is the case, they should have allowed him time to close all the accounts.

He was asked to leave on July 7th, 2015, and his June salary was also unpaid. Is there a legal avenue he can pursue to claim his money? Please advise.

Thank you.

What I can make out is that the employee was dismissed on the basis of allegations which have not been proved. The termination may be illegal in such cases. Mere suspicion cannot be the basis of dismissal. However, as far as your query for pay goes, the ex-employee is very much entitled to the same and can take legal remedies for their entitled pay. Closure of one event cannot be endlessly prolonged, and the excuse will wear thin if it is legally challenged.

No, I am still very much a part of that company, and the ex-employee was my manager. The reason why I am asking is that there are several unethical practices happening here, and we are all victims. We don't know when our turn comes, and we get into such a situation. We all want to help our manager out, but at the same time, we want to know what the rights of an employee are.

In my opinion, you should work out his full and final dues by all means and settle the account once and for all, including the June salary. If the person owes any money to the company, you should serve him a legal notice for its repayment. Vice versa, please pay him the money, whatever is due to his credit.

"What are the rights of an employee?"

Right to be paid on time.
Right to fair treatment and not to be terminated without following due processes.

Equally, an employee must work faithfully, avoid the temptation to make undue gains from company transactions, and show loyalty to the company.

When obedience to the law clashes with company interest, then the law is more important.

Ruchi Choudary

The employee concerned may not be covered under the provisions of the Payment of Wages Act. Employees can contest their unilateral termination if they wish, provided they have a clear record. The employer should not be able to prove any charges of taking any favors from vendors.