Hi, I was released from my previous company on April 20, 2015, and also had the Full and Final (F&F) settlement completed and paid off by April 30th. However, the F&F settlement does not contain information about the gratuity and relocation expenses I submitted earlier for a claim. I worked for this company for 5 years, 6 months, and 20 days, making me eligible for gratuity, which has not been paid. Furthermore, I was forced by the company to resign. I had placed a claim for relocation expenses sometime in the past and had submitted the proof of bills before my last working day, expecting them to be settled with the F&F. I discussed this matter with the Finance team, who assured me that it would be taken care of and claimed along with the F&F and paid off.
Currently, when I emailed the company about these issues, the HR team handling gratuity responded, "I will check with Payroll and revert to you on this matter at the earliest," but it has been a week with no update. On the other hand, the finance team from the claiming department has been sending emails explaining policies to avoid paying out, as far as I can understand. Initially, they informed me that I was not eligible as I left the organization in less than a year from the date of claim submission. However, after clarifying the policy, it became evident that the 6-month condition applied to individuals on transfer, not just newly joined resources. Despite this explanation, they now claim it had to be submitted within 3 months of joining, a condition not applicable to transfers. The company's approach seems to be avoiding payment.
Currently, I urgently need funds due to family health issues. I am ineligible for insurance coverage, which I overlooked, and was relying on the F&F settlement. However, even though my financial situation without a job is critical, I have not received the expected payments.
My Question
Can an employee's F&F be settled without gratuity and other claims being paid per policy standards? Can I file a complaint about the employer's behavior, where they forced me to resign under threat of termination, revoked health policies such as maternity coverage, and failed to settle the funds I expected post F&F closure, despite the Finance department's attempts to evade payment?
Regards, Venkata.
From India, Hyderabad
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Currently, when I emailed the company about these issues, the HR team handling gratuity responded, "I will check with Payroll and revert to you on this matter at the earliest," but it has been a week with no update. On the other hand, the finance team from the claiming department has been sending emails explaining policies to avoid paying out, as far as I can understand. Initially, they informed me that I was not eligible as I left the organization in less than a year from the date of claim submission. However, after clarifying the policy, it became evident that the 6-month condition applied to individuals on transfer, not just newly joined resources. Despite this explanation, they now claim it had to be submitted within 3 months of joining, a condition not applicable to transfers. The company's approach seems to be avoiding payment.
Currently, I urgently need funds due to family health issues. I am ineligible for insurance coverage, which I overlooked, and was relying on the F&F settlement. However, even though my financial situation without a job is critical, I have not received the expected payments.
My Question
Can an employee's F&F be settled without gratuity and other claims being paid per policy standards? Can I file a complaint about the employer's behavior, where they forced me to resign under threat of termination, revoked health policies such as maternity coverage, and failed to settle the funds I expected post F&F closure, despite the Finance department's attempts to evade payment?
Regards, Venkata.
From India, Hyderabad
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Filing a Complaint Against Employer's Behavior
Your query is whether you can file a complaint against the employer's behavior, where they forced you to resign by threatening termination if you did not do so by the end of the day. It is possible to make a complaint to the appropriate forum, but in your case, it seems you did not protest the signing of the resignation and even accepted the Full and Final (F&F) settlement after 10 days. Your submissions may not be accepted. It is only if you had requested acceptance of resignation after one month's notice, but the employer accepted it immediately on the same day, that you can seek to set aside the resignation.
As far as gratuity dues are concerned, make a representation to the employer to pay your gratuity dues immediately. Otherwise, lodge a complaint with the authorities under the Payment of Gratuity Act.
Entitlement Under Andhra Pradesh Shops and Establishments Act
You are entitled to service compensation under section 47(3) of the ANDHRA PRADESH SHOPS AND ESTABLISHMENTS ACT, 1988, amounting to fifteen days' average wages for each year of continuous employment. However, 15 days' wages may be forfeited under the said section. Thus, send a legal notice to pay you service compensation and relocation charges as well.
Extract of Section 47:
“ANDHRA PRADESH SHOPS AND ESTABLISHMENTS ACT, 1988
47. Conditions for terminating the services of an employee, payment of service compensation for termination, retirement, resignation, disablement, etc., and payment of subsistence allowance for the period of suspension:
(1) No employer shall, without a reasonable cause, terminate the service of an employee who has been in his employment continuously for a period of not less than six months without giving such employee at least one month's notice in writing or wages in lieu thereof. In respect of an employee who has been in his employment continuously for a period of not less than one year, a service compensation amounting to fifteen days' average wages for each year of continuous employment shall be provided.
Provided that every termination shall be made by the employer in writing, and a copy of such termination order shall be furnished to the Inspector having jurisdiction over the area within three days of such termination.
(2) The services of an employee shall not be terminated by the employer when such employee has made a complaint to the Inspector regarding the denial of any benefit accruing to him under any labor welfare enactment applicable to the establishment and during the pendency of such complaint before the Inspector. The services of an employee shall not also be terminated for misconduct except for such acts or omissions and in such manner as may be prescribed.
(3) Every employee who has put in a continuous service of not less than one year shall be eligible for service compensation amounting to fifteen days' average wages for each year of continuous employment, (i) on voluntary cessation of his work after completion of 60 years of age, (ii) on his resignation, or (iii) on physical or mental infirmity duly certified by a Registered Medical Practitioner, or (iv) on his death or disablement due to accident or disease:
...
(2) An employee who has completed the age of sixty years or who is physically or mentally unfit, having been so declared by a Registered Medical Practitioner, or who wants to retire on medical grounds or to resign his service may give up his employment after giving his employer notice of at least fifteen days. Where no such notice is given, the service compensation payable to him shall be forfeited to the extent of fifteen days in lieu of the notice.”
Thanks
Regards
From India, New Delhi
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225Your query is whether you can file a complaint against the employer's behavior, where they forced you to resign by threatening termination if you did not do so by the end of the day. It is possible to make a complaint to the appropriate forum, but in your case, it seems you did not protest the signing of the resignation and even accepted the Full and Final (F&F) settlement after 10 days. Your submissions may not be accepted. It is only if you had requested acceptance of resignation after one month's notice, but the employer accepted it immediately on the same day, that you can seek to set aside the resignation.
As far as gratuity dues are concerned, make a representation to the employer to pay your gratuity dues immediately. Otherwise, lodge a complaint with the authorities under the Payment of Gratuity Act.
Entitlement Under Andhra Pradesh Shops and Establishments Act
You are entitled to service compensation under section 47(3) of the ANDHRA PRADESH SHOPS AND ESTABLISHMENTS ACT, 1988, amounting to fifteen days' average wages for each year of continuous employment. However, 15 days' wages may be forfeited under the said section. Thus, send a legal notice to pay you service compensation and relocation charges as well.
Extract of Section 47:
“ANDHRA PRADESH SHOPS AND ESTABLISHMENTS ACT, 1988
47. Conditions for terminating the services of an employee, payment of service compensation for termination, retirement, resignation, disablement, etc., and payment of subsistence allowance for the period of suspension:
(1) No employer shall, without a reasonable cause, terminate the service of an employee who has been in his employment continuously for a period of not less than six months without giving such employee at least one month's notice in writing or wages in lieu thereof. In respect of an employee who has been in his employment continuously for a period of not less than one year, a service compensation amounting to fifteen days' average wages for each year of continuous employment shall be provided.
Provided that every termination shall be made by the employer in writing, and a copy of such termination order shall be furnished to the Inspector having jurisdiction over the area within three days of such termination.
(2) The services of an employee shall not be terminated by the employer when such employee has made a complaint to the Inspector regarding the denial of any benefit accruing to him under any labor welfare enactment applicable to the establishment and during the pendency of such complaint before the Inspector. The services of an employee shall not also be terminated for misconduct except for such acts or omissions and in such manner as may be prescribed.
(3) Every employee who has put in a continuous service of not less than one year shall be eligible for service compensation amounting to fifteen days' average wages for each year of continuous employment, (i) on voluntary cessation of his work after completion of 60 years of age, (ii) on his resignation, or (iii) on physical or mental infirmity duly certified by a Registered Medical Practitioner, or (iv) on his death or disablement due to accident or disease:
...
(2) An employee who has completed the age of sixty years or who is physically or mentally unfit, having been so declared by a Registered Medical Practitioner, or who wants to retire on medical grounds or to resign his service may give up his employment after giving his employer notice of at least fifteen days. Where no such notice is given, the service compensation payable to him shall be forfeited to the extent of fifteen days in lieu of the notice.”
Thanks
Regards
From India, New Delhi
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If you have completed more than 5 years of service, the employer is obliged to pay you your gratuity. If you think that they are dilly-dallying on the issue, just write an email to HR stating that if you do not receive your gratuity within 7 days, you will have no option but to approach the labor office. If they don't respond, do write to the labor office narrating the facts of the case.
Shrikant
From India, Mumbai
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Shrikant
From India, Mumbai
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Full n final settlement.doc