Facing HR Challenges: How to Handle Gratuity and Settlement Issues After Resignation?

I was working with a Private Limited Company in Noida, UP. The company has 150 plus employees. My basic salary was Rs. 36,000/- PM (at the time of leaving) and gross approximately Rs. 73,000/-. I joined the company on 09-09-2013 and resigned on 13-07-2018 with the last working day on 31-07-2018. As per my appointment letter, there was a clause for two months' basic salary or two months' notice period (in lieu).

Due to some urgent personal reasons, I was not able to serve the full notice period of 2 months, so I offered to pay the remaining notice period amount and requested to adjust it with the salary of July 2018. On my last working day, I handed over the laptops and company assets and obtained no dues clearance from all departments except for my HoD.

The present HR head suddenly started harassing me, saying that I had to give a full two-month notice, else they would terminate my employment after two months and declare me as absconding. However, they had acknowledged my resignation via email just two working days ago. I had completed my job, but for them, it was now a matter of ego. I have copies of the no-dues certificate and resignation acceptance in my possession.

My Queries

1. Am I eligible for gratuity as I worked for 4 years and 11 months?

2. What should I do if HR does not provide the full and final settlement and relieving certificate? I am willing to pay the short notice period pay as per the letter of appointment.

3. Can they really terminate my appointment after I leave the organization, even after my handover, as they are threatening to finish my career by terminating?

4. They have deducted salary as Ex Gratia (part of CTC). Should I make a claim for that?

Dear Shasandeep,

1) You are eligible for claiming gratuity.

2) Management does not end with HR. It is advisable to make a representation to the next higher authority and request acceptance of your resignation, subject to the condition of buying out the remaining notice period. If such a formal and courteous approach does not work, pay the amount and simply walk out.

3) It would become a contentious issue if they resort to such an extreme step under the wrong advice of HR, as the employer cannot insist on serving the entire notice period while the employee exercises the option of buy-out as per the notice clause of the employment contract. Nor can the employee take it for granted just because their resignation is acknowledged. Resignation should be formally accepted. It is not clear how you were permitted to hand over your charge along with the company's properties you had.

4) The question is not clear to me.

Dear Shasandeep, I agree with Mr. Umakanthan. If the company refuses to clear your full and final settlement and issue you a relieving letter, seek assistance from a lawyer who specializes in labor matters. Have them send a legal notice to the company demanding the settlement of your dues and the issuance of the relieving letter. They can't prevent you from taking action. Keep a copy of your resignation letter and their acknowledgment of it. Explain to your future employer the situation regarding the relieving letter. Any deductions made in error can be claimed in the legal notice, along with your full and final payment. Feel free to contact me at [Phone Number Removed For Privacy-Reasons]. Best of luck!

Regards, Ashok Sharma Labor Law Adviser

Thank you for your valuable suggestions! I will first try to send gentle emails and reminders as I have not done anything wrong. Leaving the present organization after five years without any significant growth is no crime. Also, I have completed all the work as suggested by the immediate HOD. Sometimes, very senior people working in HR take matters as an ego issue, which creates problems. With all of your blessings, my next employer is convinced and is allowing me to join.

Further, kindly guide me on where I can lodge my complaints in Noida, Uttar Pradesh if my gratuity and dues are not being given by the company (my gross salary was 72,000, and basic 36,000 while leaving). Intellectuals like you on-site HR are really helping humankind by giving the right suggestions. Surely, I will keep updating all of you.

Regards,
Sandeep Shah

Hello Sir, I would like some clarity on my Ex-Gratia, which was deducted from my salary (CTC). When I joined, the employer included this component in my CTC and appointment letter. It is equivalent to one month's salary and was traditionally given before Diwali.

However, my appointment letter does not mention that I will not receive the Ex-Gratia if I leave the company. Despite being verbally informed that it is provided to all employees after Diwali once it is declared, they have now stopped giving it to those who have left. For new employees, they have started specifying in the appointment letter that the Ex-Gratia will only be given if the employee remains in the role.

This situation has led to them withholding my Ex-Gratia for the financial year 2017 and the first four months of 2018. I would appreciate your advice on whether I can recover this.

Regards, Sandeep Shah