Employee Claims Unpaid Allowance: How Should I Respond to This Notice?

Respected sir,

I had an employee who served from February 2018 to December 2023. He wanted to leave the job and move forward, so we relieved him from his service.

Now, he is threatening that we promised a monthly 5K allowance, which has not been paid. He is asking for 71 months (71 x 5K) plus interest. I received a notice from the labor department on plain white paper for the settlement of the above-mentioned calculations. The complaint number is left blank, and there is no seal of the department, just a signature.

Kindly help with what to do...

No such promise of allowance was made, and the salary was credited promptly every month, even during the lockdown when the office was closed.

Hi, Hope the full and final settlement was cleared 100% for that employee. The employee is eligible for a salary as per the terms of the Appointment Order only. You can cross-check with the Labor Department about the genuineness, and if it is a fictitious notice, you can reply through an advocate stating that strict legal action will be initiated against him for his act of forgery.

Thank you for the guidance. Yes, the full and final settlement is done. In fact, he has taken some cash advance from us, and we waived that as well.

Alleged Promise of Rs. 5000

What promise for Rs. 5000 was alleged by the ex-employee? Was any promise given in writing to him? If yes, you should consider it. If there is no such written promise, you need not worry. Cross-check with the Labour Inspector about the authenticity of the so-called notice. Depending on its confirmation, you have to deal with the matter or reply to the notice suitably.