Is It Legal for My Old Company to Withhold Salary and Gratuity After Resignation?

I worked in a company in HR as a clerk for the last 6 years and 4 months. I resigned from my job with a 5-day notice instead of the required 15 days as per company rules because my new company was not giving me 15 days to join. I mentioned the last working date in my resignation letter and changed my job after that date. However, my old company is not providing my clearance and gratuity. They claim that I did not hand over properly, but at the time of resignation, they never mentioned the need for a formal handover. Is it legal for them to withhold my salary and gratuity?

Yes, one has to complete their handing-over procedures before leaving the job. You may not serve the notice period and can leave early by the remaining days as per company norms. First, list out the tasks and complete your handover process. If any company assets are in your possession, they should be handed over before you can request your full and final settlement and Gratuity Amount.

Being in HR, you should know that it is not the person but the knowledge that person has to share. Also, had the company given its approval for a short notice period? Had they accepted it and communicated it to you in writing? They may not be able to hold your gratuity, but they can surely ask you to come and do the handover. Remember that this will not be possible on your week off, as the other person may not be free. So, you will need to go there and give the handover. May your exit be graceful and not regrettable. One should never burn bridges; you have already done that. Just make the amendments, and things will change.

Regards,

Thank you both for the suggestions, but at that time, I was ready to hand over the list of items and files. However, they refused to take them over. They forced me to stay for another 15 days and asked me to train the new staff in HR. They assured me that they would clear my dues thereafter. Unfortunately, explaining everything regarding EPF, ESI, and other HR tasks in just 15 days seems impractical. It might require more time than that. However, I cannot afford to miss out on this new opportunity as it may not come again in the future. Additionally, there was an HR Executive who was familiar with all the files and items in the HR office.

Thank you.

Hi Aauyshraj, handover needs to be prepared in an Excel sheet. This should contain all the passwords and user IDs for various programs and software that you have been using. Additionally, provide an update on the progress of PF site updates and what is still a work in progress. We understand that 15 days is a short time to help someone understand the role, but leaving without any such update is not advisable.

You have every right to state that you cannot extend beyond the stipulated notice period, and they have the right to require your physical presence for the entire notice period.

You have directly transitioned, which is causing the Full and Final (F&F) settlement issue. Have a conversation with them, and explain that you can provide the handover and document it for the new joiner for future reference. Believe me, your 6 years of experience there is more valuable than what has been documented in the files.

All the best.