Can My Former Employer Legally Withhold My Final Pay Due to Unrecovered Debts? What Are My Options?

Dear All,

I left a company in March 2017 and worked for 15 days during that month. When I requested my Full and Final (FnF) settlement, the company informed me that they were holding the amount due to an unrecovered sum in the market that was billed during my tenure.

I have a question regarding whether a company can withhold the full and final settlement of an employee for this reason. What are my options in this situation? Additionally, since I did not complete a year with the company, am I eligible to claim a bonus for the period I worked?

Thank you in advance.

Regards,

Dear Somesh, From your post, it appears to me that you left the job without following the separation formalities such as resignations, no dues, etc. If you had addressed this at that time, it would have been settled then. However, nearly 7 months have passed, and now you are attempting to claim your pay and bonus.

To claim the 15 days' salary and bonus, write a letter to the authorized person in your company, providing all the necessary details for demanding your salary and bonus through registered post. Be sure to send a copy to the local labor officer.

This is one of the few methods to recover your salary and bonus.

Kind regards

Dear,

I didn't follow the formalities. I submitted my resignation via email on 29th March 2017, and my last working day was the 15th. Now:

1. Can the company hold my settlement due to outstanding dues from my tenure?
2. I worked for 11 months and 15 days in the company. Am I entitled to a bonus?

Regards,

Dear Somesh, ethically, no company has the right to hold full and final settlement. Salary has to be paid for the period served by the employee. Also, refer to the clauses regarding the notice period to be served, notice period recovery if not served, and separation terms and conditions in your appointment letter.

Bonus: If you are referring to the statutory bonus in your post and are eligible as per the Bonus Act, and if your basic salary (refer to the act for definition) is less than 21,000 and you have served at least 30 days in a given financial year, you are liable to receive the statutory bonus within 8 months following the completion of the financial year on a pro-rata basis.

Warm Regards,

LGR

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Thank you for the advice. The offer letter waives the possibility of reimbursement since no notice was given. Additionally, as one year has not been completed, the company disagrees to pay the same. However, they are holding the sum due to some old outstanding issues during my tenure.

Can I appeal to the Labour/Consumer Court?