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MKS (Zonal Manager)     20 June 2012

Full and final not given even after relieved officailly

i worked for a comapny from 06.03.2001 till 03.04.2012. I put down my papers on 29.03.12 with 2 months notice period effective from 29.03.12.  My resignation was accepted and as per official mail recd from GM HR, i was officaily relieved from the services of company on closing hours of 03.04.12, and was instructed to proceed with HR executive for dues settlement. Whatever company property with me like Laptop, Data card, Mobile SIM card and identity card was handed over to branch and acknowledgement taken, Now for past 2 months I am following with various authorities and as well as wrote emails to MD, and to my surprise they are asking to collect some payment from market and alleging that i have incurred losses to company, How can I approach market when i am officailly no more a part of company??is it justified on comapny behalf to ask me to go and collect payment?? also what rights company has to hold back my gratuity and PF settlement??pls advise waht course of approach should I take to get my settlement??



Learning

 5 Replies

Kumar Doab (FIN)     20 June 2012

It is believed that you have posted the facts.You have posted that:

--“ I put down my papers on 29.03.12 with 2 months notice period effective from 29.03.12.  My resignation was accepted and as per official mail recd from GM HR, i was officaily relieved from the services of company on closing hours of 03.04.12,”

This implies that you were relieved within 6 days from notice of resignation. Company should tender notice pay for rest of the days. You can rake up the issue and term the acceptance illegal.

--"and to my surprise they are asking to collect some payment from market and alleging that i have incurred losses to company,"

The allegation is verbal or in writing? Employee should record such transactions ( audio/visual) and keep some witness during such transactions.During your employment did the company ever issue any instruction in writing to approach these parties in market on behalf of company and peruse to pay the bills of company? Did you book the orders? Is it written in any of the documents or bills that party can not handover the payment to any employee or Is it written in any of the documents, emails, communication that employee can not collect the payment in cash from parties?

Once the company raises a bill the party has to pay direct to company as per agreed terms of transaction.

--"How can I approach market when i am officailly no more a part of company??"

You are right.

During the period the charge was handed over by you did the company express in any of exit report/documents that you have to ensure the payment of the bills?

You have successfully handed over the charge.

There are companies which ask its employees to obtain NOC from its stockiest. Their demand is unlawful.

--is it justified on company behalf to ask me to go and collect payment??

No.

--"also what rights company has to hold back my gratuity and PF settlement??"

None.

PF and Gratuity are covered under Social Security Laws.

--PF is immune from any attachment.

Can the amount standing to the credit of any member in the Fund be assigned, charged or attached?: The amount standing to the credit of a member in the Fund cannot be assigned, charged or attached under any decree or order of any Court. Similarly, the amount standing to the credit of a member in the Fund at the time of his death is free from any debt or other liability incurred by the member before his death and cannot be attached under any decree or order of any Court. {Section 10}

 

 

Payment of Gratuity Act:

Section 13: Protection of Gratuity

-No gratuity payable under this Act 22[and no gratuity payable to an employee employed in any
establishment, factory, mine, oilfield, plantation, port, Railway Company or shop exempted under section 5] shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.

- Before forfeiture of Gratuity, employer must supply show cause notice to employee and grant opportunity to explain. Forfeiture can be up to the extent of loss caused/proved.
4(6) Notwithstanding anything contained in sub-section (1),
(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or
negligence causing any damage or loss to, or destruction of, property belonging to the employer,
shall be forfeited to the extent of the damage or loss so caused;
(b) the gratuity payable to an employee 16[may be wholly or partially forfeited]–
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or
any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.

 Employer should pay gratuity in a month on its own.

If the employer delays the payment it shall have to pay interest. If the good offices also maintain studied silence and do not provide relief you may approach o/o Controlling Authority which may be DLC in your case.

Rules of Payment of Gratuity:

7. Application for gratuity.-(1) An employee who is eligible for payment of gratuity under the Act, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within thirty days from the date the gratuity became payable, in Form 'I' to the employer:

 

    Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement.

 

8. Notice for payment of gratuity.-(1) Within fifteen days of the receipt of an application under rule 7 for payment of gratuity, the employer shall-

 

if the claim is found admissible on verification, issue a notice in Form 'L’ to the applicant employee, nominee or legal heir, as the case may be, specifying the amount of gratuity payable and fixing a date, not being later than the thirtieth day after the date of receipt of the application, for payment thereof,

You may submit form I to company with a copy to Controlling authority and obtain acknowledgment from both.

 

--"and alleging that i have incurred losses to company,"

Has this allegation been made in writing? Has any show cause notice been issued during employment?

You can proceed under Industrial Employment Standing Orders Act, SE act, Payment of Wages Act as per explanation of employees under these enactments, and approach o/o Labor Commissioner, Civil court.

You may approach a competent and experienced service lawyer with all records, copy of appointment letter, standing orders of the company, employee rule book and give inputs in person. Your lawyer may prefer to issue a legal notice.

MKS (Zonal Manager)     20 June 2012

thanks a lot for the prompt reply.

Regarding payment , the bills are raised to the parties from company under some credit terms agreed and parties issues post dated cheques as per terms,and sometimes parties are covered under special termsof open credit for certain period . in some cases the payments are delayed or deferred by way of cheques bounces owing to market and business reasons.

Since I offered 2 months notice period, they could have replied as relieving under conditions of clearance of payments etc.. but nothing of such sort mentioned in my relieving mail. Pls advise further whether should I send any legal notice or still pursue through mail communication... they ahve relieved so many employees recently, where market payments were due in their respective areas.. but in my case it seems to be a personal vengeance against me for with holding my dues..

regards

mk

Raj (Sr Area sale officer)     20 June 2012

Dear First of all the company can not hold up your gratuity as its the security deposit and for which you r eligible .Secondly if the company is not paying ur settlements you have it in writting and approach your area labour court and meet the labour enforcement officer ,take his advice ,fill up the form n and submit to labour court office along with all your supporting document like total hand over of the charge as well company saying the settlement wil not be done in writing ,the labour court will sent the notice to the company and will be called to hearing . 

Pls do it as its ur money and most of the companies are doing the same .

Even i facing the same problem with the comapny name Remik Marketing services .

I was in to marketing ,i handed over the total charge very systematically and at the date of relieve the company said settlement will not be done dueto outstndingf in the customer pending . I approached the labour court and noitce has been sent to them .Infact i handd over the sim card also which was on my name but i collected the letter saying that any further outstanding or any mis use comapny wil be responsible and took my pan  card xeroz and now the outstanding is 1900 and comapny is not paying it ,this kind of cheap behviour the company does so request you to approach the labour court and you will get the gratuity and for pf also you can approach the pf office and enquire for the procedure .

Kumar Doab (FIN)     20 June 2012

If you wish you may communicate under acknowledgment and try to resolve the matter on your own. If the company has not issued any written communication regarding outstanding payment/cheque bounce of stockiest/customers, you may also not mention anything about it. You may simply stake your claim and demand all dues and documents be supplied within say next 7 days by redg/speed post..

You may succeed or it may again be wastage of time and funds.

You may carefully record the names of other employees whose settlement has been done.

If the good offices do not grant relief you have the option of proceeding under Industrial Employment Standing Orders Act, SE act, Payment of Wages Act as per explanation of employees under these enactments, and approach o/o Labor Commissioner, Civil court.

You may approach a competent and experienced service lawyer with all records, copy of appointment letter, standing orders of the company, employee rule book and give inputs in person. Your lawyer may prefer to issue a legal notice.

PBS KUMAR (HR - PROFESSIONAL)     22 June 2012

Dear Experts,

Is there any case study on the Full and Final settlement delay on part of Employer as well as Employee.

 

Regards,

PBS KUMAR


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