Is My Brother's Company Right to Deny Full & Final Settlement Details? Seeking Legal Insights

Dear All,

My brother was working in a small private company with over 90 employees as a Manager/Supervisor and has now resigned. The company has transferred a certain amount to his bank account but is refusing to provide the Full & Final settlement computation details. My brother insisted on this document as he is unable to determine whether the settlement amount transferred is correct.

When my brother asked for the Separation policy or Separation process, the company replied that since it is a small company, they neither have a Separation policy nor a Separation process or any such defining documents. They decide on a case-by-case basis, and their decision is final.

The company has replied as follows:

(a) Under which Indian Law or Act is the company compelled to provide the Full & Final Document?

(b) Under which Indian Law or Act does the company have to follow certain norms or methods to prepare the Full & Final Document?

(c) Since you are in a managerial role, there is no law or act that can compel the company to provide the Full & Final Document.

(d) So, whether you were working/present in the office for all 27 working days in a month or not does not matter. It is the company's prerogative to pay you for 15 days as "settlement." Take that and go away. You can't question us, nor can you challenge us legally.

Is this true? Can some expert throw some light on this?

Are there any laws/acts that govern full & final settlement for people in managerial roles?

If this is true, then how dangerous and helpless the resigned employee becomes.

Details of F&F must be given. The problem is, due to his designation, he can't seek legal remedy. If there is a discrepancy that your brother sees, he should write in detail what he should have gotten. Lest he may file a civil suit for the recovery of the additional amount.

Dear Krishna, Your brother was employed as a "Manager" in a company with about 90 employees and submitted his resignation. Has the resignation been accepted, and has he been officially relieved from service? Has the employee handed over charge? Furthermore, you have not provided the date of joining and the date of leaving. You mentioned that a certain amount has been transferred to the employee's account. Are there any legal dues to the employee?

It is surprising that despite being employed as a "Chief Manager," your brother is not able to determine the amount due to him. It appears your grievance pertains to the non-receipt of the "Full & Final Settlement Statement." Please provide details about the company, nature of activity, and location.

Employment Details and Resignation

1. He was a permanent employee from day one, with no probation period as per his contract.

2. Yes, he submitted his resignation on March 30th. The resignation was accepted, and he was relieved on the same day.

3. The notice period was waived. Although my brother was willing to serve, the MD said it had been waived.

4. There was no gratuity, and PF is what was communicated to me.

5. Yes, only after a satisfactory handover for 4 hours was he provided with a relieving letter, dated the 30th.

6. The first month's salary for February was paid properly.

7. For the second month, March salary, the MD said it would be paid on April 7th as part of the full and final settlement.

8. He availed 2 days of sick leave in 2 months.

9. On April 18th, a certain amount was transferred, which amounts to approximately 20 days of his salary.

10. Repeated requests for clarity on the deductions have gone unanswered by the company.

11. The full and final settlement computation is also not being provided for clarity's sake.

Experience and Disagreement

It is not that he did not know how to handle the separation; he has over 20 years of work experience and has served long periods in previous roles, such as 8 years, 5 years, and 7 years, respectively, before joining here as Chief Manager. Unfortunately, after exactly 2 months, he had to quit. Nowhere else has he faced this problem.

When two individuals disagree and a difference of opinion arises, these kinds of strange situations can occur. Since this is a small private company with over 90 employees, there seems to be no separate HR department, and the MD himself is handling the subject. Unfortunately, the disagreement is with the MD himself.