Concerned About Unpaid Salary and Expenses After Resignation: What Are My Rights and Next Steps?

I have worked in a limited company for almost six years as an assistant sales manager, a middle management position. I was forced to resign on the 30th of May 2017, with the requirement to resign and provide three months' notice. During this notice period, I would not be paid the field conveyance allowance; only salary would be payable. Therefore, I did not need to work or come to the office but was instructed to search for a new job.

I followed the instructions, resigned on the 1st of June, and gave three months' notice, specifying that the 31st of August 2017 would be my last day. Throughout this notice period, I refrained from going to the office but continued contacting clients for their overdue payments. Notably, my appointment letter does not contain any clause regarding the recovery of receivables.

After the completion of the three months, on the 4th of September, my boss emailed me, requesting the receivables from a few parties. It is worth mentioning that the material was sold to these parties based on the approval and instructions of higher authorities, such as the Zonal Manager or Regional Manager. The material was dispatched only after their approvals and recommendations. I am concerned about being solely held responsible for the receivables and having my salary and expenses—such as LTA, Gratuity, Bonus, and Vehicle Maintenance Allowance—held.

Clarification Needed on Salary and Expenses

Could you please clarify:
- Can they hold my salary?
- Can they hold my expenses?
- How long can they hold these payments?
- What steps can I take to recover them?
- What are my rights in this situation?
- Is the employee responsible for receivables when there is no clause in the appointment letter regarding this matter?

I would greatly appreciate your help in understanding my rights in this situation.

Hello,

Legally, your employer should pay you for the work you have done up to your last working day. If there was no clause in your contract about withholding pay for such circumstances, then your employer should not withhold your salary. Similarly, if there were agreed-upon expense reimbursements in your contract or company policy, these should typically be paid out to you as owed.

Unless your employment contract explicitly states that you are responsible for recovering receivables post-resignation, it is unusual for an employer to hold an ex-employee responsible for this. If your employer is withholding your salary and expenses without legal grounds, you may consider seeking legal advice. Labor laws vary by location, so consulting with a lawyer who specializes in employment law would be advisable. As an employee, you have rights to fair treatment and compensation as per your employment contract and local labor laws. If these rights are being violated, you may have grounds for legal action.

Before taking any steps, it's important to review your employment contract, company policies, and seek advice from a legal professional to understand your rights and options.