Notice period queries leaves, last date of working and salary hold for F&F

Hello, I have a couple of questions. I'm currently serving notice period with a BPO in Pune.

1. I need to take leave for a family function, and now I'm told that I will have to extend my notice period to that extent. I have leaves available. Please advise as I think I can take available leave, and that should not affect my last working day.

2. I resigned on 17th Nov 2017, and a 60-day notice period would mean my last working day would be 15th Jan 2018. But the company says 16th Jan 2018. Please advise.

3. The company will hold almost 2 months' salary, which will be settled along with Full and Final within 45 days from the date of the last working day. This is nowhere mentioned in my offer letter and was never informed about. Please advise on how I can ask them to hold 1 month's salary and pay it with the Full and Final settlement.

Dear Adisesha,

Replies to your questions are as below:

1. I need to take leave for a family function, and now I'm told that I will have to extend my notice period to that extent. I have leaves available. Please advise as I think I can take available leave and that should not affect my last working day.
Reply: Employee leave and resignation are two unconnected things. These need not be linked together. Neither employee leave be linked to the notice period. Asking the employee to extend the period because the employee avails of leave is ridiculous. Ask your HR which labor law permits this rule.

2. I resigned on 17th Nov 2017, and a 60-day notice period would mean my last working day would be 15th Jan 2018. But the company says 16th Jan 2018. Please advise.
Reply: This confusion is because you are counting 17th Nov, and your company is excluding this day. Notice period of 60 days = (13 days of Nov) + (31 days of Dec) + (16 days of Jan 2018).

3. The company will hold almost 2 months' salary, which will be settled along with Full and Final within 45 days from the date of the last working day. This is nowhere mentioned in my offer letter and was never informed about. Please advise how I can ask them to hold 1 month's salary and pay with Full and Final settlement.
Reply: Withholding the salary violates the Shops and Establishment Act. When an employee leaves the company, the wages need to be paid on the last working day. At best, the salary may be paid when the salary is disbursed at the end of the month. Your salary for Nov 2017 should have been paid by 10th of Dec 2017, the salary of Dec 2017 by 10th Jan 2018, and the salary till 16th Jan 2018 can be paid along with the payment for that month.

Final Comments: Though the employee submits the resignation well before 60 days and yet if the company takes 45 days to clear the employee's salary, then it speaks of poor HR practice. Are we in the 19th century? What is the use of having computers, IT systems, and so on? HR of that company should have educated the top authorities about the illegal activities that their company is following. But then this is the problem!

Thanks,
Dinesh Divekar

Thank you so much for your help. I'm more confident about talking to HR now.

Notice period is not governed by any labor law, but by the contract of employment between the company and employee or the service conditions applicable to the particular category of the employee. One can have a different notice period for different categories of employees.

You can take leave during the notice period. It is rather an odd practice to tell an employee on the notice period to extend his date because he has taken leave. Employers should not try to retain employees forcefully like this; instead, they need to tweak their HR policies.

Withholding of salary is not legal. Tackle the issues boldly but diplomatically. First, you should be aware of the legal practices of withholding pay, leave, etc., and then speak.

Hi Everyone,

I used to work for a company and absconded after working for just about 1 month and 15 days (I was on probation) as I got a better opportunity elsewhere. I spoke to the manager and HR that I'd got a better job and as my financial position is weak, I have to take it. Hence, they said they'll treat me as absconded and terminate me (I submitted all company articles with me back to them). Now, after almost a month from my last working day, they've mailed me asking for F & F settlement amount which I can't afford to pay. They have also mentioned that if I fail to pay dues within 3 days, they will be constrained to initiate appropriate action against me. However, there is a sentence in the mail that says it is only on receipt of the recovery amount that they will provide an experience or relieving letter.

Friends, I'm scared and need to know if I can ignore it and not pay anything. I don't want an experience letter; I know it will affect my future, but I can't afford to pay the amount. I'm cornered. Please help me, guys.

What are the terms and conditions given in your job offer? You were on probation, and what was the notice period given as per their offer letter. I really do not think they will initiate any action for an absconding probationary employee. Notwithstanding, put up the wordings regarding termination, notice period in your offer letter. No point being scared now after the act. Let us find a way out of the problem.

Dear Friend,

To advise you properly, the following information is required:

a. In your appointment order, what exit clause is specified?
b. What is the company policy on leaves?
c. What is your category - are you an agent or management staff in the BPO?
d. Is it stated in writing in the policy that management cannot withhold salary for 2 months? This practice is illegal and immoral as it causes extreme hardship to the employee concerned.
e. What is the company's policy on adjusting EL/PL against the notice period?

The appointment order does not mention the FnF process.

Warm Regards,
Bharat Gera
HR Consultant
9322404765

Dear all,

My status is also the same. I resigned on November 23rd via email, after discussing it ethically on November 17th, following 15 years of service. My resignation was due to medical grounds, family illness, and personal reasons, with the last working day set as December 6th. There was no resistance shown, and the process started immediately because I was mainly leaving due to HR/Boss mistakes in treatment, stemming from some misunderstandings.

HR edited my resignation, backdating it to November 1st with my boss's approval, stating it was for calculation purposes. They considered 36 days served and held the salary for that period, resulting in 72 days accounted for, leaving 18 days to be adjusted with unclaimed benefits. Additionally, I have 35 days of leave credit. My gross salary is 54k, broken down as 64k for 36 days, 63k for PL, and 70k for unclaimed medical/conveyance. The remaining 18 days equate to 32k, and the company holds my 36 days' salary of 64k, unclaimed 70k, and PL 63k, which were not considered for notice period or encashment, even on the basic (12k), claiming I owe 250 rs further. Despite my inquiries, the only response provided is "company policy," which has never been shown or circulated.

I belong to the management cadre, and my appointment letter did not specify a notice period due to my sportsman status at that time. Our company falls under the Factories Act/ S&E Act in TN. My queries include:

1. Is calculating recovery in the gross amount correct, or should it be based on the basic salary?
2. Is recovery in gross and payable in basic/nil the correct method?
3. Can a company make PL zero by stating it lapses, and does this rule apply differently to management staff and workers?
4. Do the rules differ for PL/EL between management staff and workers? Why is PL displayed on the payslip?
5. Can a company unilaterally hold an employee's salary, and can they have their own rules in a standing order?
6. If standing orders are not shared with employees, how can they be expected to comply with them?
7. Do bosses/MDs know about these methods regarding notice periods and settlements?

Not all employees are deceitful or defaulting. What about innocent, less fortunate employees? I have been uncomfortable with the exit system for years, and my relieving is pending. To address these issues, I need to have clear facts and sections to discuss. I urge all HR professionals to reflect on these matters as a company's image rests on fair settlements and maintaining employees' dignity.

Thank you.

Dear Guest,

If the company is holding back your rightful salary, you should file a suit. I read somewhere that there is a clause in the Companies Act which doesn't allow a company to harass an employee. With your 15 years of experience, you are entitled to receive the relieving letter. Remember, it's all your life's work wasted if you don't get the relieving letter.

Thank you, sir. Some say that the company can also withhold salary, but I never stated that I wouldn't pay or anything. Everyone requested a calculation, and I provided my version and asked for an explanation.

Dear Guest 73,

While I have full sympathy for you, there are certain details that need to be shared before I can offer you appropriate advice on the matter:

1. Changing the details in a resignation letter by HR is absolutely unethical, immoral, and illegal.
2. You may have joined under a sports quota, but service conditions on exit do not differ.
3. You need to share your appointment letter or the contents of the exit clause in the letter.
4. Every standard company has a leave policy for employees; please share your leave policy document.
5. Please also share the original resignation letter.

Warm Regards,
Bharat Gera
HR Consultant
9322404765

Dear Bharat sir,

Thank you for your response, sir. Since I worked as a regular employee for 13 years, I didn't debate on whether it is mentioned in the letter or not. The main drawback is that our company never shared their policy and simply say orally it's company policy that all PL/EL lapse. In January 2017, my PL was 92 days, and if I resigned at that time, it means 92 days becomes zero (which is 3 months' salary), and then it is like either serve 3 months or pay, which is like they extract six months' salary along withholding unclaimed. When the company is reluctant to show their policy, how can an employee debate on that?

My doubt is, can the company have a policy saying all PL will lapse? Is it not a statutory entitlement? My HR is aware that he is having a cushion for 4 months' salary amount on his side and tries to play a game like he is too generous as he didn't make me pay much. I feel cheated, and that thought is killing me. Sir, I am posting from mobile and don't know how to attach. I will send it by mail if you give us the mail ID.