What’s the Deadline for Settling F&F for an Officer Who Left? Consequences of Delays?

Dear All, please advise on the mandatory time limit for the full and final settlement of an officer cadre employee who left on 12.08.2021 after completing a one-month notice period. He has no outstanding dues, and consent was obtained from his colleagues, but our institution's head wants to delay his F&F settlement.

Kindly advise on the mandatory time limit to settle his F&F. If not done within the specified time, what would be the consequences of a delayed settlement?

Thank you.

As per the Payment of Wages Act and the Factory Act (you have not explained what your employer is), full and final settlement must be done within 30 days. However, payment of salary due must be done within 2 working days from the date of separation.

Dear Rakesh,

It would have been better if it was stated why the institutional head wants to delay the F&F settlement. Whatever the reason, the settlement of dues to an employee upon formal exit cannot be delayed according to the whims and fancies of an employer. Particularly, when there are no dues from the employee, such an act would amount to unfair labor practice on the part of the employer. When he openly conveys his such evil desire to another employee who is a colleague of the exiting employee, it shows his temerity towards legal compliance only.

For your information, the salary for the last spell of duty shall be paid within two working days from the actual date of separation. Statutory Gratuity, if payable, shall be paid within 30 days from the date of termination. All other sundry dues like caution deposit, etc., shall be paid within 30 days.