Employee Resigned but Salary Still Pending: How Can They Claim What's Due?

Hi,

Can anybody suggest what to do if an employee resigns from a company, and the company asks the employee to wait for 45 days for the full and final process? After completing this period, almost 3 months have passed since the resignation. However, the company is now refusing to clear the employee's pending salary and is making various excuses to delay the transfer of the salary amount. How can an employee claim the pending salary? Please advise.

Salary cannot be withheld and generally should be paid between the 7th and 10th of each month; otherwise, such a delay may attract interest and fines.

Please provide a breakup of your full and final settlement for better advice.

If your salary is outstanding, you may send a notice or legal notice before approaching any legal forum for recovery of the same.

The employee gave a written resignation in December 2016. The employer asked to wait for 45 days, stating that nothing could be done before that time. It has now been almost three months, and in February 2017, the employee also submitted a no-due clearance. However, the employer is now making excuses, claiming that their Chartered Accountant (CA) is unavailable and too busy. If the owner is willing to clear the employee's salary, they can instruct the CA accordingly. Please advise on what else is pending from the CA's side.

Yes, but when an employee has cleared all dues, then the employer gives them a termination letter. I think when a company terminates an employee without serving any notice period, the employee can claim three months' salary. Is this correct?

Yes, but when an employee has cleared all dues, then the employer gives them a termination letter. I think when a company terminates an employee without giving any notice period, the employee can claim 3 months' salary. Is that correct?

Post-Resignation Dues and Settlement

After resigning, some employers clear the payment within a month, while others delay it. There is no fixed time limit for releasing the full and final settlement payout, but 30 to 45 days is considered reasonable.

Legal Actions for Delayed Payments

You can send a legal notice claiming interest for the delayed payment along with the principal amount. If you fall into the workmen category according to Section 2(s) of the Industrial Disputes Act, you can raise an industrial dispute before the Conciliation Officer of the area (Labour Department).