Struggling with Delayed Full and Final Settlement: How Long Should I Wait for My Ex-Employer to Act?

Hello everyone,

Recently, I am facing a problem with my ex-employer. I had a proper resignation from my ex-company on June 21, with a 1-month notice served and a 2-month payback clause. My ex-employer accepted my resignation but did not mention any relieving date. However, in my resignation letter, my relieving date is mentioned.

After serving 1.5 months of the notice period, the company did not clear my relieving and informed me to serve a 3-month notice period as per my joining letter contract.

Now, 4 months have passed, and the company is still not providing any date for full and final settlement. They are verbally asking for more time without any written confirmation.

Seeking Advice on Full and Final Settlement

In this situation, I am unable to understand what steps I should take to receive my full and final settlement. I need your valuable suggestions for the following points:

a) After how much time will the employer do the full and final settlement?

b) Can the employer terminate the employee after accepting the resignation?

c) There has been no response from HR via email or phone calls.

d) Is there a specific time frame or maximum time for the full and final settlement after resignation acceptance?

e) It has been almost 3 months since my last day in the organization, but to date, I have not received my experience letter and documents.

Thank you for your assistance.

Dear Colleague,

In simple terms, it is understood that you have completed your notice period and complied with the terms of your appointment. However, even after 4 months, the organization/HR has not settled the Full and Final (F&F) and has not sent you the relieving order/experience certificate, etc.

In your message, it is not clear whether you are still working in the organization or have already left, and what your length of service has been.

Broadly speaking:

1. You are not obligated to work beyond your 3-month notice period, and the organization cannot insist that you do so. If someone insists on you working beyond the notice period, it is not legally permissible.

2. Regarding F&F, there is no specific timeline stipulated by law, except for those working in factories where wages for annual leave earned must be settled within 2 days of leaving service. Generally, for bonus settlement, there is an 8-month period from the close of the financial year allowed. For gratuity (if you have completed 5 years of continuous service), 30 days from the date of relieving is allowed, and beyond that, simple interest is applicable, which the organization must pay additionally.

3. There is no specific timeline for issuing an Experience Letter, etc., under current labor laws, which indicates that there is still progress needed in this area.

Given the circumstances, possible steps could include:

1. Directly approaching the organization for settlement.
2. Sending reminders, letters, meeting in person, etc., to expedite the process.
3. Meeting with the highest-ranking person in the organization to address your concerns.
4. Approaching top management, though this may be challenging, to bring attention to your situation.
5. If the matter remains unresolved, filing a grievance petition through the labor department's grievance portal.
6. Seeking the assistance of a Conciliation Officer (if covered under the Industrial Dispute Act 1947) for F&F resolution, and filing a petition for gratuity with the Controlling Authority under the Payment of Gratuity Act as a last resort.

Overall, engaging in direct discussions and efforts to resolve the matter is preferable, as legal routes can be lengthy. It's essential to remember that individuals within the organization may be at fault, rather than the organization as a whole.

Some points are not clear.

Notice Period Clarification

How many days of notice have you given? When they said you need to work for 3 months, what response did you give?

Expectations on Letter and Pay

If you need to give 3 months' notice and you only gave 1 month, do you really expect the letter and pay?