Struggling with Final Settlement: How Can I Ensure Timely Payment and Documents?

Hello, I have been working with a Pvt. Ltd company on a Professional Services agreement. As per the contract, there has to be a one-month notice from either party for termination of the contract. The company did not give any notice stating the termination of the contract; rather, they verbally stated that they would not be able to extend the current contract. I have filed the full and final settlement invoice with the company.

I had taken an advance during my engagement with the company and now have to return it. I have asked the HR to settle the amount against my invoice, which holds an amount higher than the advance taken. HR is stating that first I need to make the payment into their bank account, and then they will proceed with the full and final settlement. It will take 45 days as per policy.

As per the professional services agreement, I believe all the dues and payments should be settled on the Last Working Day (LWD) or the end of the contract date. Please suggest how I can proceed further to get my full and final amount along with experience and relieving letters. I am in agony and pain with no money for over 40 days now.

Professional service agreement and employment contract are different.

Option 1: In your case, as you have mentioned that the company is asking you to pay back the advance, you could probably do that to get the settlement.

Option 2: Submit a request, quoting the terms (if specific clauses are there in the agreement, how to deal with advance, settlement, etc.) to release the final settlement.

Withholding payment of any employed person on termination of employment - whether permanent, temporary, contractual, casual, or in any capacity whatsoever - is outright unlawful. Hence, the employer is liable to penalties or penal action. This is a fit case for seeking and securing legal remedy at the behest of the aggrieved person.

Kritarth Team
6.3.19.