Dear Friend,
1. Timelines for the payment of Full n Final settlement is not part of terms and conditions of employment, however, since it's a moral and legal responsibility of they are under obligation to make the payment within reasonable time.
2. In case of an employee who has resigned it is nowhere defined in any law as to when and how fast the FnF payment has to be made. I personally know many renowned big companies do not bother to make the payment for 6/8/10/12 months. These companies do not bother about impact of such behaviour on its reputation. They are aware that there is a large scale unemployment so people are easily available.
3. First check with HR if you do not sign what are the consequences. If they say that they will not issue your RL, approach HR Head and if he is also of the same opinion, meet CEO and inform him about the case. If you get the solution then its win win. In case the matter is not sorted out as per your expectations then read below.
3. Here is what I thought you can do :-
a. Sign the document and collect your relieving letter.
b. Since you have not disclosed the industry you are working in, I am presuming that they do not
do background check, as the document you have signed does not have a legal sanctity, you can
withdraw that undertaking by sending a letter to them claiming that it was signed under threat
and coercion of holding back the RL. Get the letter drafted by some good advocate who handles
service matters.
c. Please ensure that you get good background verification hence move accordingly.
Warm Regards
Bharat Gera
HR Consultant
9322404765