Rakhi (Analyst) 11 November 2014

Full & final settlement letter

Hi,

I resigned from my company after paying for notice period & excess leaves. I paid the amount with my last month salary along with bank cheque (for remaining amount).

Now, the company is not providing me any authorized letter against this payment.

I have just been provided with my last salary slip (without any signature/stamp).

I would like to know whether or not it is mandatory for companies to provide an authorized receipt/letter for the FnF settlement.

I need the same to apply for reimbursement in my current organization.

Please help as I am really troubled with my previous company's response

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2 Replies

Kumar Doab (FIN) 12 November 2014

Payment of Wages Act:Sec13A:Salary slip signed by both employer and employee should be supplied at least a day before disbursement of Wages. FnF statement in original should be supplied for verification and acceptance by employee. The FnF statement should show the adjustment of notice pay, adjustment of leave etc collection of recovery by chequenunumber....... Form 16 should be issued as per correct FnF statement. If notice pay excess leave recovery is not shown in F.F statement then you might be subjected to double taxation. Demand from appointing authority, As HR R might not agree due to internal policy of employer for HR.

T. Kalaiselvan, Advocate (Advocate) 16 November 2014

If your previous employer is not responding properly to your demands, you may have to resort to legal recourse by sending a lawyer's notice demanding your requirement, take the help of local lawyer and proceed.