Struggling to Get My Full and Final Settlement: How Can I Recover My Dues and Decide on Legal Action?

Seeking Advice on Full and Final Settlement Issues

I resigned from the services of the company effective from 7th January 2016. In fact, I was asked to resign due to cost-cutting with a verbal assurance that my salary and all my field expenses would be given to me during my Full and Final (F&F) settlement at the earliest. However, to this day, I have neither received my salary nor my expenses, despite my repeated reminders to them.

The only thing I have received from them is my resignation acceptance copy via mail. As instructed in the mail, I handed over all my company property to them, and there are no outstanding issues against my name. Not only have they yet to settle my F&F, but they are also not providing my salary slips, Form-16, and relieving letter, despite my repeated reminders, which is not helping my cause on numerous aspects.

Seeking Suggestions on Recovery and Legal Action

Kindly suggest to me on three things:
1. How do I recover my hard-earned money from them? What could be the best possible way?
2. I read in some of your posts and comments that a legal battle can sometimes be grueling and revengeful. Should I pursue legal justice or not?
3. What could be the best communication via mail to make them respond and give me a definite date for my F&F settlement? Right now, they are simply ignoring my emails and not giving any due importance to my F&F.

The amount of my F&F is quite significant (Rs 3.00 lakhs), and the company is giving every signal that they are in no mood to settle it. Either the company thinks they can keep my money, or they believe they are above the law. What should be the correct way to get my money, as I am a working professional and should not hamper my present work or future assignments?

Regards,
(Anonymous)

As stated by yourself, you were "asked to leave." In that case, is there any clause in your appointment letter regarding the notice period from either side or in the case of termination? Please read it carefully.

If the answer is yes, that either party can ask for the termination of the contract of employment, then the employer has to pay and settle all dues within the stipulated timeframe from the period you terminated your services, and you have the acceptance letter as well.

Option 1: Through Advocate - Court

There is a three-year timeframe if the case is filed through court, from the date of your relieving.

Option 2: Industrial Dispute Tribunal - Labor Court

You can file your case through the concerned labor officer of the area, keeping a copy of the same for the labor commissioner. If not solved by the labor officer, it will automatically be dismissed and transferred to the tribunal under the "Payment of Wages Act" and "ID Industrial Dispute Act" (exact sections not remembered currently).

You should carry all email communication printouts for future reference. Do not worry about results if you seek justice; your employer will amicably settle your dues.

Regards,
Prince

Assuming that your employer is still in business, the separation was initiated by your employer months back. Hence, you are entitled to compensation. Full and final settlement is the amount that you receive after deductions from your pending payment.

As you have realized, a legal course will take time. Have you tried connecting with the Labour Commissioner? If you can talk to one and get them to intervene, that should help.

The amount that you have mentioned is pretty big. However, through what calculations have you arrived at that? Nevertheless, please connect with the Labour Office. Hope that should help.

Regards,
[Username]

As advised, can you please guide me on how to approach the Labour Commissioner? I am based in Delhi. Do I need to meet him in person with all supporting copies, or should I mail him everything? The names of the persons whom I need to contact, along with their contact addresses and email IDs, will help me immensely to proceed as advised by you. Kindly provide me with all the details.

1. How do I recover my hard-earned money from them? What could be the best possible way? Depending on the nature of the due (outstanding salary, bonus, gratuity, PF, etc.), you have to claim before the appropriate forum. For example, there is a separate forum/procedure for applying for gratuity.

2. I read in a few of your posts and comments that a legal battle can sometimes be grueling and revengeful. Should I or should I not go in favor of legal justice? A legal battle can be time-consuming as well as expensive. If you have both time and resources, then go ahead. You are the best person to decide for yourself. In a practical sense, more than money, what a litigant requires is time and patience.

3. What could be the best communication via mail to make them respond and give me a definite date for my F&F settlement? Right now, they are simply ignoring my mails and not giving any due importance to my F&F. Since they are not giving importance or replying to your claim, you can now send a legal notice.

4. The amount of my F&F is quite significant (Rs 3.00 lakhs), and the company is giving me every signal that they are in no mood to settle it. Either the company thinks they can keep my money, or they believe they are above the law. What should be the correct way to get my money, as I am a working professional and should not hamper my present work or future assignments? Consult a lawyer with all your documents and initiate legal proceedings. Rs. 3 lakhs is not a small amount.

Thank you, ma'am, for your reply. In fact, I was first thinking of approaching the Labour Commissioner if I don't get any response by the end of this month. I have also requested a favor to provide me with the details, including the address and email ID of the Labour Commissioner of Delhi in my previous post. If somebody can assist me with this matter, I would be extremely grateful.

As advised by a few replies on my post and also after reading a few posts and replies of others, I have decided to send an application letter to the Director of the company via speed post, where I have given him 15 days to settle my F&F. Within 3 days, the company sent me a cheque of Rs 35,000 duly signed by the Director.

Seeking Advice on Next Steps

Now, I seek advice from the panel and members of the forum:

1. How should I proceed next? The value pending in my F&F is Rs 3.00 lakhs, whereas they have sent me a cheque of Rs 35,000 only.
2. The cheque came via courier, which carried no covering letter, F&F statement, or any other listed documents that I had asked for.
3. Should I approach the labor commissioner/lawyer right away, or should I send the company another application letter to inquire about the cheque sent and my F&F statement?
4. What should be the ideal wording of the communication if an application letter needs to be sent?

Regards

Response to Employer's F&F Settlement Offer

In continuation of my previous posts, my former employer has responded via email to my postal reminders, stating that I will only receive Rs 35,000 as my full and final (F&F) settlement instead of Rs 3.00 Lakhs plus pending salary and expenses. According to their manipulated calculation, they have prepared a balance sheet claiming I owe them Rs 50,000 for advances, which I am unaware of receiving. I have not yet responded to their email.

Additionally, I have drafted a final reminder to send before proceeding to the labor commission. However, they replied to my previous reminder via email before I could send the final letter.

Kindly guide me on what steps to take in this situation. Your valuable information will greatly assist me in making the correct decisions.