Resigned but Company Won't Accept It and Withholds Salary – How Should I Handle This?

I resigned on the 21st of July, 2017, due to personal issues. However, my management is refusing to accept my resignation and has withheld my salary for the month of July. I am willing to serve my notice period and have been performing well in my role. Can you please provide guidance on how to handle this situation? Thank you.

Dear Latha, separation from the company and salary disbursement are two separate issues. One should not have a bearing on the other. Therefore, you may write an application to the MD of your company asking for the release of the salary. In the application, mention that you have domestic commitments that can be fulfilled with the monthly salary. If the MD remains adamant, then we will need to consider our next steps.

By the way, what is your designation? How many persons report to you? We need this information to assess whether the provisions of the Industrial Disputes Act, 1947, apply to you.

Thanks,

Dinesh Divekar

Thank you, Mr. Dinesh. I submitted my resignation on 21st July 2017, and since 21st August 2017, I have not been going to the office. My salary for the entire month of July and from 1st August to 21st August 2017 is still pending. I have requested my management to provide me with my relieving letter, considering it as a notice buyout, but there has been no response from the team so far.

Do you suggest that I pursue legal action? I am in desperate need of my salary, and there has not been a single month where I have not contributed to the business. Please advise.

Thanks

Dear Latha, you have taken 20 days to upload your second post. However, you have not answered the questions that I had asked in my previous post. When writing a post, it is important to mention the nature of your industry, the city/state where you work, designation, and so on. This information helps us in assessing the applicability of the respective labor laws.

Have you sent a written letter to the MD? If yes, then what was his reply? What is your designation? How many persons report to you? Please reply to the questions.

Thanks,
Dinesh Divekar

Concerns About Notice Period and Relieving Letter

I am the Sr. Talent Advisor, and I am the only one handling the NON-IT Recruitment Vertical in the recruitment industry. I have planned to give a notice of 45 days as per the rules, but I have been hearing from various sources about non-payment and threats of not receiving relieving letters from the company even after serving the notice period. I am based in Hyderabad.

I clearly mentioned during joining that I could try to support the BD activities, but later I found there is no support in getting business from the BD. The BD activities I have undertaken so far have been the only reason I have been able to secure any business to date.

Thanks

Dear Latha, you need to serve your notice period as per the provisions of your appointment letter. There is nothing to "plan" about it. You have written that you "have been hearing from various resources on the non-payment and threat of no relieving letters from the company even after serving the notice period." Let me specify not to worry on this count. On completion of the notice period, if the employer pays you the salary, then well and good. Else, find out the office of the Labour Officer (LO) of your area and give an application to him on non-payment of wages. However, you have to go there personally and explain your problem to the LO. When you go there, carry with you proof of your employment like the appointment letter, identification card, etc.

Please note that LO is different from a labor lawyer. The Government of India as well as state governments have created labor offices to solve the problems of the workers. Since nobody reports to you, under the provisions of the Industrial Dispute Act, 1947, you are classified as a "workman," and this act is in your favor. In contrast, labor lawyers are professionals who work in their personal capacity. They can issue the notice to the employer, and if the employer does not respond, they file a suit. However, a lawyer's services come with a hefty fee, whereas the services of LO are free. Possibly, he may tell you to provide "Chai-paani," which anyway you will oblige. Please speak in the local language while at the Labor Office.

In fact, holding the salary for the month of July 2017 is also illegal. Write an email to him to release the salary. Keep with you the printout of the mail. It might be helpful to you as evidence. If you face any problem, come back again to this forum.

All the best!

Dinesh Divekar