Can My Former Employer Delay My Final Settlement Over a Lost Document Issue?

Hello everyone! I need advice on my situation. I left my previous company, and they informed me that they would give me the full and final settlement within one month after the last working day. In the meantime, an issue with a client's important documents going missing came up. Although I was handling the case four months back, and I remember that it was not an open case from my end, the company is now saying that they will not release my final settlement until the document has been found.

While I am trying to help them figure out where the document might be, I am wondering if a company can delay the settlement or deduct from my salary on this basis?

Please advise.

Many Thanks!

To add to my previous note, they have given me the scanned copy of the relieving cum experience letter via mail.

They cannot hold your full and final settlement for more than a month. Talk to them and resolve it amicably. Tell them that you are willing to support them anytime. I will try to come on Saturday and Sunday to complete any pending work. Promise them and get the settlement.

If they have not settled your account and if your pay is less than 18k/month, you can raise a dispute with the labor officer/Deputy Commissioner of Labor under the Payment of Wages Act.

Hi Divakar,

Thank you for your response. The issue they have raised is an old one, and as far as I can remember, I had done my part of the job. However, I have told them that I will help. Let's see.

Thanks again.

Not only can the company hold back your payment, but they can, in fact, take legal action—both criminal and civil—against you if they have evidence that it was your responsibility. If the documents are important trade secrets, they can even raise allegations against you for having misappropriated them. So you need to be very careful.

If you have any proof that the documents were, in fact, handed over, you must provide that information to the company.