Stuck Without My Final Pay: Can I Take Legal Action for Delayed Settlement?

I have worked in an IT organization on the outskirts of Karnataka. I resigned 5 months ago, and to date, they have not paid the Full and Final settlement. I have all the exit documents indicating that I have completed all my exit formalities. The policy states that F&F will be paid after 45 days, and now it's been more than 5 months.

I have approximately 30 email conversations requesting payment. All the responses from management are promises like "will do this week," "next week," and so on.

Questions Regarding Legal Action and Compensation

1. Can I take legal action against them?
2. Am I entitled to compensation since they have not paid on time?
3. They have not provided my UAN number. They also deduct employer contributions from the employees' end. Can this be challenged in labor court?

Please suggest what can be done.

They take PF employer contribution also from the employees' end. Can this be challenged in labor court.

Dear Robin,

You can raise an industrial dispute under section 2k. All you need to do is first find the concerned labor officer for your territory. Take all your mail conversations and relevant documents. Draft a letter mentioning all your disputes and submit the complaint to the labor officer. He will guide you as he is the only authority or competent person designated by the appropriate government.

Regards,
Sudharshanan

I would second Sudharshan in this. You can very well approach a labour officer.

Though there is no mention of the nature of payments due to you, other than EPF consequent to your resignation 5 months ago, I think the dues may comprise gratuity if your service is not less than 5 years, salary for the unavailed portion of leave, unpaid salary if any for the last month of your service, and bonus for the accounting year if you are eligible.

Gratuity Claim Process

For gratuity, you have to file a claim before the Controlling Authority under the Payment of Gratuity Act, 1972, together with 10% simple interest for the period of default.

Approaching the Labour Officer

Regarding the other dues I mentioned, you can approach the area Labour Officer. Though he has no statutory powers to direct the management to pay, his intervention may serve as positive persuasion. Otherwise, you have to file separate claims under section 33C(1) and 33C(2) of the Industrial Disputes Act, 1947, for unpaid salary and leave salary, respectively.

Provident Fund Contribution Issue

Regarding the deduction of the employer's contribution from your salary, you have to make a complaint to the Regional Provident Fund Commissioner.

Regards