Navigating Full and Final Settlements and Relieving Letters: Legal Insights and Employee Rights - CiteHR

Hi, I was working with a leading pharmaceutical company for about one year. As I got a new opportunity, I left the job 6 days prior to my notice period because my new company demanded me to join early. As per the company rule, the notice period was one month, but since I left 6 days prior without completing the notice period, I didn't get my relieving letter. Now, that company is not ready to give my settlement, which includes LTA, Medical, Bonus, and PF, until I provide the relieving letter, which I don't have. However, my resignation letter was accepted. Also, in the appointment letter, it is mentioned that after resignation, either a one-month notice period has to be given, or I have to pay the salary of one month in lieu of the notice period.

Can my previous company hold my settlement? Or is there any other legal procedure through which I can get my settlement?

Regards, Smeeta

From India, Pune
Acknowledge(0)
Amend(0)

Hi Smeeta, leaving before the completion of the notice period is a move that the company can use against you to hold your final dues. However, if you had any leaves on hand, you can have the same settled against those six days.

As for the relieving letter and final dues, the company cannot hold it. At most, the company can require you to reimburse it for the six days that you did not work during your notice period.

There are legal provisions in place whereby you can get the company to clear your settlement. But these are a long-drawn and expensive option and should be used only as a last resort. It is better if you can approach the HR of your previous company or the main boss and try to find a mutually agreeable way out of this mess.

Regards,
Gaurang

From India, Ahmadabad
Acknowledge(0)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.