Can My Company Legally Hold My Final Pay Due to Unpaid Customer Debts? Seeking Advice

Dear Experts,

I was working with the company as a "Sales Manager" until 2018 and then resigned. The company has issued me a Relieving Letter cum Experience Certificate. It's been 2 years now, but to date, the company has not settled/released my Full & Final Amount, which includes 2 months' salary, LTA, and Medical Allowances. I have served my notice period and completed all the required handover processes.

There were customer payments to be collected at the time of my last working date (which is very obvious as being in a Sales Role, at any given point in time, there will be some due or non-due market outstanding). Out of these, two of the customers haven't paid to date—one of them, the proprietor, died, and the second customer has confirmed in an email that he owes the amount to the company but has not paid to date.

After continuous follow-ups with the company, HR replied that the Full & Final settlement will be processed once these two customers release the payments. The company has not taken any action on these customers to recover these payments to date and has neither released my settlement amount.

Can the company hold my Full & Final settlement for this?

Do I have the option to go legal? Please guide.

Thank you.

Company's Right to Hold F&F Dues

You performed the job of a Sales Manager with the company. The company sold its products/services to various customers through you, and during your tenure, you might have enjoyed fringe benefits like sales incentives, air travel to a foreign country (depending on company policy), or a good increment. However, the collection of outstanding dues was also part of your responsibility. A salesperson can achieve their sales target through credit sales, but the collection of funds, thereby nullifying the outstanding amounts, is part of the sales process. When funds are collected, only then is the sales process considered complete. As you failed to collect the outstanding dues, which belong to the company, they are holding your money. You may meet the outstanding clients of the company and try to make them clear their dues. The very next day, the company will release your money. If you opt for legal action, it will be difficult for you.