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Dhananjay Tripathi (Manager)     26 March 2012

Company not giving full and final

Hi,

earlier i was working in a company and i resigned from there on 18th Nov 2011. When i resigned they put on hold my two months salary and my fixed variable which was part of my salary. While leaving the company they told me that they have a policy that they will do full and final only after 45 days when you leave. which i think is not a leagal policy?

As of today i am still struggling for my two month salary and my fixed variable amount. can any budy please help me what action i can take on them as one of employee there told me that they will never pay me back though i served the complete notice period.

Is there any govt. law by which i can get my amount back?

 

thanks and regards

Dhananjay



Learning

 2 Replies

Kumar Doab (FIN)     26 March 2012

Ideally wages should be paid on last day in office or within 2 days. Companies quote their internal policies to supply FNF statement and disburse FNF settlement payment say in 30/45 days.

Since you have served full notice period deduction of notice pay is not applicable. Did you sign any kind of service agreement/bond and did you avail any loan or had imprested cash. Did you submit company property under acknowledgment? Did you receive FNF statement?

You may submit a gentle representation by letter thru redg. post addressed to good offices of your appointing authority, MD, Head-HR, Company Secretary and mention detail of :

--name/designation/dept, of company personnel, which stated that FNF statement and payment of FNF amount shall be done after 45 days.

--all representations made by you so far along with name/designation/dept of company personnel contacted by you on phone (mention date, phone numbers) email, in person, by letter, fax etc, and their response. You may mention cost of each representation e.g. traveling charge/parking charge to office/cyber cafe/PCO, typing charge, internet charge etc of each representation and leave if any if you had to take for this purpose etc.

--financial hardships faced by you.

--amounts of each payable due at the end of comapny.

--the reply to your letter along with FNF statement, payment by bank DD only ( not cheque), work experience/service certificate, relieving letter, PF number/accumulation reports/attested copies of withdrawal-transfer forms, NOC/NDC, form 16 etc be supplied to you by redg. Post only so as to reach you say with in next 7 days, and a self addressed postage prepaid redg post envelope ( as purchased from post office) is enclosed herewith.

--If no relief is granted by good offices you shall be constrained to seek legal advice cost of which shall have to be paid by company in actual.

If good offices do not grant relief, you shall have to approach the institutions of courts of law, as advice by your lawyer at the cost and consequences of the company.

If company does not respond you may approach a competent and experienced service lawyer with all records and give inputs in person and your lawyer shall evaluate the merits and choose appropriate forum which may be O/o labor Commissioner/wages inspector, civil court. Your lawyer may prefer to issue a legal notice and your company may respond to legal notice.

If many ex. Employees are facing this problem all of you can join hands and approach your lawyer.

 

 

Manindra Singh (Chief Manager IR)     28 March 2012

I agree with the advise of Mr.Kumar. Few thing I will like to add:

1. Please mark copy of the notice to the Dy. Commissioner of Labour / Assistant Commissioner of Labour of Your Distt.

2. Legally, as I understand, payment should have been made within 2 working days. The MWA does define "Employee" and you may not fall under the definition of employee. However, the relevant rule which stipulates payment of dues with two working days is applicable to any person of the company and not just "employee" as defined under the MWA. There for do mention in your notice that " as required the does have not been paid within 2 working days which is violation of rule 21(In Maharashtra - check your state rule)

3. You should also demand interest at the rate of 12% on outstanding amount with penal damages.

 

Regards,

Manindra Singh


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