Company not settling my dues post resignation

If the management has not moved when you beg, plead, cajole and threaten to legal action, the only remedy available is to file a civil suit for the amount you are entitled.

Mr. Chandu has given valuable advice. Kindly follow it.

If you have been into sales you would understand that no sale is complete till the payment is realized.

The companies offer incentive/sales commission not only to improve sales but also the collect payments/revenue in time…………………………………

You could have agreed to help for realization of payment. If company declined to pay any cost to be incurred by you, wages for extra days to be served by you for this purpose you could have minuted the transactions…………………..

If the company has sold goods/services to a customer, even if the employee has brought this customer during the course of employment to the company, the bill is raised in the name of customer, and there is a clear policy that customer has to pay the company and if the customer does not pay, company can proceed to recover.

In addition to the Industrial Disputes Act, 1947, several states also provide for compliances under the Shops & Establishment Acts, Standing Orders Act…………. So, if the employee falls within the definition which has been provided under these enactments, then he would be protected up to that extent.

 Designation alone does not decide employee is a ‘Workman’ as in ID act and ‘Employee’ as in Shops & Establishment Act.

Your lawyer may ask you a set of structured questions and may opine that you are covered by these/either of these enactments.

 Let us assume that you are not covered by either of these enactments and the forum for you to agitate would be civil court…………………

In that case limitation period of 3 years may apply. Out of which nearly 2 years have gone waste.

You have given a very long rope to this employer and officials who probably want you to treat the amounts as a parting gift.

You have posted that:

--------“During my tenure, I had done a sale for which part collection was made and the other part was to be collected. In their hurry to get me out the company, the management promptly relieved me of duties within 15 days of my notice, paid me for that month.”

“They refused and stopped my full and final settlement.’

“I dont have the money power to fight long protratced legal cases with such a large corporation.’

-You may look into the incentive policy of the company ascertain the time limit defined within which the payment should be received by the company and for employee to be eligible to get incentive/commission/performance bonus……………….or any other term used for it in the policy.

You may also check if it is stated that employee to be eligible should in the employment for full period of eligibility of the period and at the time of disbursement of incentive.

If the period is say……….30 days and you are relieved before this date then employer by his free will has ended the employer-employee relationship………………and from the last day in office the person is not employee and can not be asked to do any job for the company leave apart collection of payment from the customer of the company.

During the course of the employment many companies prohibit/bar the employees to collect cash………………….and state it in their policy…………………

-If employee has initiated and tendered notice period of 60 days, then employee has notified the employer on his effective date of retirement from the company.

The resignation can not be accepted before effective date of resignation tendered by employee.

If you were not allowed to serve the notice period and relieved with immediate effect the company should tender notice pay to you.

Otherwise the resignation can not be accepted before effective date of resignation tendered by employee

If the company has accepted it before the effective date of retirement (resignation) then employee can agitate ………………

Company should on its own tender notice pay @ as agreed in contract of employment to employee………….

It shall be the discretion of employee to accept the payment or demand to let complete the notice period and earn the salary for full period of notice.………………..

Supreme Court of India

Nand Keshwar Prasad vs Indian Farmers Fertilizers ... on 1 April, 1998

(https://www.indiankanoon.org/doc/1452145/)


11. After giving our careful consideration to the facts and circumstances of the case, it appears to us that the law is well settled by this Court in a number of decisions that unless controlled by condition of service or the statutory provisions, the retirement mentioned in the letter of resignation must take effect from the date mentioned therein and such date cannot be advanced by accepting the resignation from an earlier date when the employee concerned did not intend to retire from such earlier date. It has also been held by this Court that it is open to the employee concerned to withdraw letter of resignation before the same becomes effective.

 -The day for payment of FNF dues is usual pay day.

-Some employees by their knowledge of employer and his deeds, by virtue of their position achieve some kind of handle on employer. If you have you may apply such handle and resolve the matter in your favor.

Some employees are skilled to apply exceptional levels of negotiation, reasoning, peruasion, persistence skills and succeed to resolve the matter in their favor.

Payment of wages Act (applicable to all employees drawing wages up to Rs.18000/pm) 
2. Definitions.: 3*[(vi) "wages" means all remuneration………………..
(d) any sum which by reason of the termination of employment of the person employed 
is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

Submit a final representation addressed to the good offices of Appointing Authority, MD, Chairman and narrate all payables by company to you (including Gratuity) and all representations made by you ( mention names, designation, dept, name of company, address, phone numbers, email id, date of call/email, brief minutes of discussion………..and verbal promise made on phone to supply the payment by dated……………) highlight that you have rendered unblemished services, have been clamoring to get your legitimate dues and call upon good offices to supply you the payment by bank DD only thru redg. post only, along with acceptance of resignation, work experience/service certificate, relieving letter, correct FNF statement, payment of FNF dues, Form 16 as per correct FNF statement, last salary slip and for all month’s of employment, PF number/account slips for entire period of service/attested copies of PF withdrawal or transfer forms, NOC/NDC etc………………………. You may mention that a postage prepaid ( as purchased from PO) self addressed envelope is enclosed for sending the DD by redg. post to you, so as to reach you in say……………..15 days.
Thus place all transactions on record and conclude that employer kept you entangled by its repeated promises............


Then submit legal notice, and pull them to court of law.

Seek your lawyers counsel to understand the merits in filing criminal complaint under sec. 406,420.......

and approaching the employer as creditor and treating the unpaid wages as debt on employer.

Bombay High Court
Balaram Abaji Patil vs Ragojiwalla (M.C.)

“Therefore 'wages' does not merely mean remuneration payable by the employer under the terms of the contract, express or implied; it includes any amount which the employer legally becomes liable to pay to the employee on fulfilment of the contract.
23:
In the case before us, once the employee has performed his part of the contract, the minimum wages due to him are, in our opinion, a debt due from the employer."

Approach a competent and experienced labor consultant/service lawyer with copies of all of your docs, spend quality time with your lawyer, understand the merits and proceed under the expert advise of your lawyer………….

There are many threads you may find useful:

Valuable advice of learned experts is sought.

https://www.lawyersclubindia.com/forum/Performance-incentive-not-paid-83562.asp#.UdxGATuAqWM

https://www.lawyersclubindia.com/experts/Service-matters-regarding-notice-period-and-relieving-from-service-403836.asp#.UdxGGDuAqWM

https://www.lawyersclubindia.com/forum/Regarding-pending-salary-pf-83511.asp#.UdFFcTuAqWM

https://www.lawyersclubindia.com/forum/Employer-cheated-me-on-f-f-settlement-need-advice-83024.asp#.Uc67HTuAqWM

https://www.lawyersclubindia.com/forum/Salsry-on-hold-83258.asp#.Uc67STuAqWM

https://www.lawyersclubindia.com/forum/Salary-not-payed-82310.asp#.UboA-dhVMgs

https://www.lawyersclubindia.com/forum/Salary-not-payed-82310.asp#.Ubc5P_lVPxp

https://www.lawyersclubindia.com/forum/Employer-not-paying-salary--82331.asp#.Ubc5qflVPxo

https://www.lawyersclubindia.com/forum/Non-payment-of-salary-81896.asp#.UbAThNKAqWM

https://www.lawyersclubindia.com/forum/Full-and-final-settlement-not-paid--76066.asp#.UbAUUNKAqWM

https://www.lawyersclubindia.com/forum/Non-payment-of-full-final-sattelment-81866.asp#.UbAUwNKAqWM

https://www.lawyersclubindia.com/forum/Neither-resigned-nor-terminated-salary-unpaid--81683.asp#.UbAVCNKAqWM

https://www.lawyersclubindia.com/forum/Wages-not-paid-by-employer-81628.asp#.UbAVHdKAqWM

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Dear Sirs,

I thank the Mr. Chandu and Mr. Kumar Doab for responding to my post. 

In response to Mr. Doab question regarding incentives, I was never paid an incentive in any form whatsoever.

I  was told that  it was the prerogative of the  MD/Chairman and they paid it to those who were in good books with them. The administrative staff in my branch who were not involved in sales were paid some amount every year in June for the previous financial year ( April to March) I am not sure if they paid those who left the employment.  

The incentives were paid for such amounts which  were collected even in part in that financial year but I was never paid any money whatsoever. Everytime, I asked about the incentives, the standard reply was that my branch did not make a profit so I am not eligible for it.

There have been previous cases  of non collection of dues in my branch and in other branches  of the company as well. Many of the client/s had simply refused to pay the dues, due to shoddy  or poor quality of work executed by us.

In such cases, when I wrote to the Head office to file a suit against the client for recovery of dues they said that it was not worth the time & money and I was told that they are writing off the dues. How can this particular case alone be treated differently?

I need to recover  about Rs.8 lakhs or so and what would be costs for filing a suit in a local court?

About an year ago, I had sent them a legal notice from my lawyer. They sent me a response stating that I have willfully caused loss to the company and quoted the non collection of dues from one particular party.  And that they are with holding my FNF.  Since then they have been bombarding me with  notice for caveats suits filed by them in the courts, wherein they have requested the courts to inform them of my suit if any and not to take any ex parte decision. What is the meaning so many caveats? Is there something I should do too?

What will compromise of FNF settlement ? I have  considered LTA, balance of notice period amount, encashment of unutilised leaves and interest @ 36% per annum from the next day of relieving.

Also didn't the company have a say in holding back my relievement and asked me to wait until all issues are settled?  Asking me to go at the first instance and then holding back my FNF stating filmsy reasons tantamount to harrassment? If I want to file a harassment  suit what sections should I familiairise with.

While I am in a bad financial state and I can't really afford a lawyer, I do want to go ahead and do somehing conclusive and close this. To this end, I want to be as informed as a professional lawyer hence the question.

I am very grateful for your time and advice and I thank you very much for your support.

warm regards,

its better to issue a formal letter stating all the dates and the amount you should receive and clearly mention the date of leaving the company and wihtout any dues what so ever from the company and see the response if there is no response then issue a legal notice and follow the legal step and for established lawyer you should bear expenses