Can My Previous Employer Delay My Final Settlement Even After Rejoining in a New Role?

Hello, I was working for an MNC on third-party payroll. It was a three-month contract, but due to the unavailability of projects, my contract got terminated, and I worked for only one month. I submitted all the assets and completed all exit formalities before the last working day. I received acknowledgment for the same on 29th Sep. Initially, my third party said that they would release my salary for Sep as an F&F by the 7th Oct, then they changed the date to the 15th Oct, and then the 25th Oct.

In the termination mail, it was mentioned that they would do F&F by 6-8 weeks of the last working day subject to the submission of assets and approval of the timesheet. However, I rejoined the same MNC in Oct under the same third party in a new role. Now they are saying F&F will be done by Nov 10 as they are yet to get approval from their client. As I have submitted assets and rejoined in a new role, can they delay my salary for the last month?

The delay in paying your salary is inexplicable, though quite possible. From your experience, do you feel they can be believed? At any rate, you will have to wait and see as you are expecting another chance. Probably precipitating the issue with the earlier principal employer may not be rewarding.

Hi, In general, the terms of your employment and the payment of your final settlement, including Full and Final (F&F) settlement, should be outlined in your employment contract or company policies. If your termination mail mentioned a specific timeframe for the F&F settlement (6-8 weeks from the last working day), the employer is typically expected to adhere to that timeline.

However, the fact that you rejoined the same MNC in a new role might complicate things. In some cases, a new employment agreement may have been initiated, which could affect the terms of your F&F settlement.

Steps to Address Your Concerns

Review Your Employment Contract: Carefully review your initial employment contract, termination mail, and any other relevant documents to understand the agreed-upon terms regarding F&F settlement.

Communicate with HR: Reach out to the HR department or relevant personnel in your company to inquire about the delay in your F&F settlement. Seek clarification on the reasons for the delay and express your concerns.

Document Communication: Keep a record of all communication with your employer regarding the F&F settlement. This includes emails, messages, or any other forms of communication that discuss the timelines and reasons for the delay.

Consult Legal Advice: If your concerns are not addressed and the delay persists, you may want to consider seeking legal advice. Employment laws vary by jurisdiction, and a legal professional can provide guidance based on your specific circumstances.

In some cases, the delay could be due to administrative processes, client approvals, or other factors. However, it's essential to ensure that your rights are being upheld and that the delay is in line with the agreed-upon terms.

Thanks

In general, an employer should not delay an employee's salary for the last month if the employee has submitted all assets and completed all exit formalities. However, the specific circumstances may vary depending on the company's policies and the applicable labor laws.

Based on the information provided, it seems that your contract was terminated due to the unavailability of projects, and you worked for only one month. You mentioned that you submitted all assets and completed all exit formalities before your last working day, and you received acknowledgment for the same.

It is important to review the terms of your employment contract and any relevant company policies to understand the specific provisions regarding the payment of final wages or Full and Final (F&F) settlement. Additionally, labor laws in your jurisdiction may also provide guidelines on the timeline for payment of final wages.

According to the termination mail you received, it was mentioned that the F&F settlement would be done within 6-8 weeks of your last working day, subject to the submission of assets and approval of the timesheet. However, you have rejoined the same company in a new role.