Confused About Full and Final Settlement After Resigning in Just 7 Days – What Should I Do?

Query Regarding Full and Final Settlement

I have a query and I apologize if this turns out to be a lengthy post. Before seeking proper guidance, I feel it's necessary to explain the entire scenario.

I have almost 8 years of experience in Sales. Recently, on 9th November, I joined a company that is part of a media conglomerate (one of the biggest globally) as a Sales Manager. Before joining and after selection, they sent me an offer letter which I signed and returned. This offer letter did not mention any exit clause. However, it stated that a detailed appointment letter with the terms and conditions of the job would be provided at the time of joining. So, I joined on 9th November, signed the joining documents, and completed the formalities. However, no appointment letter was given, so I did not sign any such document.

After working for 7 days, I realized that this was not the profile I was looking forward to working on. Consequently, I called HR and explained the entire scenario. Following our discussion, I resigned with immediate effect. I sent a resignation email from my official email ID and kept a copy for future reference. There was no response—no calls, no WhatsApp messages, nothing after this incident.

A few days later, another HR person emailed me, asking for documents for full and final settlement. These documents include those related to PF transfer, pension claim, and a no-due certificate. I am confused as to why I need to send these forms when I haven't received any salary. Therefore, I haven't replied. Since then, I have received two more reminders to submit these documents to complete the full and final settlement as soon as possible. I have not replied yet.

I have not signed any appointment letter or any document with an 'exit clause.' I worked for 7 days and did not have any company belongings. Therefore, I believe neither the company owes me anything nor do I owe them. So, what is this full and final settlement about?

Should I reply to the email, or should I ignore it? If I reply, what should I say? Please suggest.

Meanwhile, I have another opportunity in an organization in the same field/industry where I previously worked, and I am joining on 5th December. They know nothing about this short stint. I haven't shared anything about this 7-day experience and this job. Is there any possibility that my future employer will find out about this incident?

Most importantly, I have maintained an unblemished career throughout my life. I have all documents and original credentials. I still have very good relationships with my previous employers, where I worked for 8 years (specifically 2 employers/MNCs). I want this issue to be resolved amicably so that my future employer remains unaware of this, and I will not include this 7-day experience in my career history.

I am quite confused, and I hope you understand my situation. I am requesting guidance from the experienced HR professionals in this community to help me resolve this issue immediately.

Regards,
Anirban

Just walk across to the HR guy who sent you these emails and speak to him about your predicament. This will sort out any queries you have. I am sure he will understand and guide you appropriately.

My reply to your queries is as follows:

1. You mentioned that you worked for the company for 7 days before submitting your resignation. It is understood that you have not been paid any salary, but logically, you have accrued some earnings (for those 7 days) that would be paid to you as part of the Full & Final settlement of dues, subject to the deduction of PF. In this context, if you have not joined any other organization, you may write a letter or send an email to the HR who sent you the PF Transfer Form, stating that once you join another organization, the form, duly filled and signed, would be submitted through the concerned department of the "New Organization."

2. Regarding the pension, you are to get a "Scheme Certificate," for which an application is to be submitted. Please fill it out and send it as advised.

3. A "No Due Certificate" is also required for receiving the Full & Final payment.

Regards,

Since you were not issued an appointment letter, a legal employer-employee relationship has not been established. However, as you have worked for seven days, technically, that company is bound to pay your wages and deduct PF for those days. That is why they are asking you to fill out the form and complete the due process.

However, signing the documents could be a ploy to show that you had worked for seven days, and the company could put you in trouble. Therefore, you may give a call to that HR person stating that you have confirmed from the senior professionals of a very prominent HR forum, and they have told you that it is possible to do the full and final settlement even without generating a PF code. The company can show you as a temporary employee or casual employee and pay the dues. No PF will be required to be deducted in such a case. Only ESI is required to be paid. However, that will be their internal matter, and they can do it without your intervention. Do not engage in any correspondence. This will enhance the proof of your employment with them.

As you are getting a new employment offer, there is no need to disclose your seven days of work in this company. Be cautious forever, and do not lower your guard at any time in the future or reveal this short stint.

For Anonymous: Anirban is not in a predicament of any kind; therefore, no personal visit is required. Please note that while giving professional advice, the choice of our words is very important.

For Soumitra Sengupta: You are walking on a dotted legal line. In practical life, you need to consider convenience and close the matter. In fact, the HR Head could have made this decision using his summary power on how to close this issue. There was no need to send 2-3 emails for filling out PF forms. Filling out PF forms could bring other problems in its wake. The company could start asking for notice period pay. It is better to avoid these hassles.

Thanks,

Dinesh Divekar

Thank you, Mr. Sengupta, for your suggestions. But there are some problems regarding the suggestions you have posted in my case.

1. As far as the PF form is concerned, I can't claim it even after joining the new organization because, in this case, I have to show this experience to my new employer, which I couldn't.

2. The Pension Scheme certificate can be sent to the concerned HR person as advised by you.

3. I don't have a no due certificate, and I can't go back to their office to get a no due certificate signed from every respective department.

My basic intent is I don't want them to give me any accrued salary or anything as FnF settlement. I just want to close this chapter. That's why after working for 7 days, I called up HR, had a discussion, and then subsequently resigned, and I thought the matter was closed there only.

Can there be any problem if I don't reply to these emails at all or if I don't want them to make an FnF settlement? Yes, they may terminate me for not getting properly relieved, I guess, but in any case, I'm not going to show this experience anywhere.

My only concern is they can easily trace my new employer details using my PF UAN number. Will they contact them and tell them about this incident?

Please understand I just want this issue to be settled down. I don't want anything from them. I just hope they will not contact my future employer and tell them about this incident. Can you please tell me whether the possibility of this happening is highly likely or unlikely?

By the way, there are some mandatory columns in the No due certificate and Exit feedback link like SAP ID and all. Before receiving a SAP ID, I had left the organization, so there is no way I can fill out those forms online even if I want to.

Awaiting your valuable response on the same.

I have been an avid follower of your suggestions and posts in this community for years. It is an honor to receive a reply from you, showcasing your sheer expertise on my thread. Thank you very much for your advice.

On the same note, I had a discussion about pH with one of my very good college friends this morning. He currently works as an HR Manager in an MNC in Mumbai, and prior to that, he was a lawyer. He also advised me in the same way you did: to wait and watch, and not to provide any written response.

Thank you once again.