Stuck Without My Final Pay: What Can I Do When My Employer Blames Client Delays?

My previous employer is not paying my full and final settlement on the pretext that they haven't received the funds from the client I was working for at the time. I had served the full notice period as per the Last Working Day (LWD) mentioned in the resignation acceptance mail, and they also committed to the Full and Final (FnF) payment at the end of 1 month after the said LWD.

Now it's 2 months past that deadline, and I have sent an email citing the current financial issues I am facing (I have had to take a loan to cover my living expenses in the interim). However, all they are saying is they cannot release the payment until the client pays.

Request for legal advice

I request your kind advice here on what legal remedies I have regarding this situation.

Potential repercussions of legal action

Also, will there be any repercussions for me in the future, such as negative feedback from the company if I take legal action? Do I have any remedy for this situation as well?

If you know the client, check with him the correctness of their statement. You will come to know about the intentions of your employer, and then steps can be taken accordingly.

Understanding Your Rights in Employment Payment Disputes

If the clause is added in your terms of appointment that you're liable to be paid only when your client has paid all their dues, in such a case, you cannot do anything. However, that may not be the case in most situations, as client payment is the company's obligation upon receiving funds for the services provided. Therefore, be clear about this.

If the company is simply giving lame excuses, then you have all the rights to sue the company, including securing your future. If you are good at your work, there is no need to worry because most companies evaluate candidates based on their work performance, with other parameters being secondary. If the company provides negative feedback and you have a genuine reason to address the issue, ensure you do so.