Hi Friends, A colleague of mine has recently quit the company. He has not been paid for the last two months. In the release letter provided, there is a sentence stating that there are no dues pending from the company in terms of salary or perks. The HR of the company has said that the pending dues (two months' salary) will be mentioned in the Full & Final Statement. I have a few doubts that I need advice on:
1. What is the importance of the release letter? Is it considered a legal document?
2. Impact of Accepting the Letter: If the candidate accepts the letter in its current form, does it affect his claim to the pending salary from a legal standpoint?
3. Legality of 'No Dues' Statement: Can HR mention that 'No Dues are Pending' even if there is salary pending? Is it legal for them to do so? If not, what action can be taken?
4. Impact on Future Employment: How does the statement impact my friend when he joins another company?
Advice on this is highly appreciated as right now, all employees are feeling insecure regarding this.
Thanks & Regards
From India, Mumbai
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1. What is the importance of the release letter? Is it considered a legal document?
2. Impact of Accepting the Letter: If the candidate accepts the letter in its current form, does it affect his claim to the pending salary from a legal standpoint?
3. Legality of 'No Dues' Statement: Can HR mention that 'No Dues are Pending' even if there is salary pending? Is it legal for them to do so? If not, what action can be taken?
4. Impact on Future Employment: How does the statement impact my friend when he joins another company?
Advice on this is highly appreciated as right now, all employees are feeling insecure regarding this.
Thanks & Regards
From India, Mumbai
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Release letter.doc
Legal Clarification on Non-Performer Termination, Project Based Appointment Letter, Setting UP .pdf