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Surinder Pal (Area Sales Manger)     11 January 2013

Full and final settlement

dear sir,

I have worked for  a pvt ltd company from 2.1.2006 to 7.9.2012.Ihave resigned from the company on 7.9.2012 and applied for full and final settlement including leave encashment of last 3.6 years(through lic policy) and gratuity.But my ex employer has not been responding saying some verification regarding company assests in market has been going on,to which I am not directly linked.I had remineded the hr dep and director of the company so many times but no response is coming.please advice in this matter.



 1 Replies

Kumar Doab (FIN)     11 January 2013

 

 A sensible company should supply the FNF statement/disbursement of FNF dues within a reasonable time say…..within one month. The company should declare the policy of FNF settlement too in its published HR/Exit/Severance policy and must declare while accepting resignation within how much time it shall disburse FNF dues to employee.

 

You have posted that:

--“But my ex employer has not been responding saying some verification regarding company assests in market has been going on,to which I am not directly linked.

 

Does your employment contract, some corrigendum/circular/increment –appraisal letter issued later, mentions that after resignation the out standings from the market have to be cleared by employee?

 

This seems to be a trend/practice being followed by many companies.

However if the bill is raised by company in the name of a client the employee is not the one who has to pay.

Company might be inquiring from market if you have obtained some advances from any client for which client may make the company responsible.

This is internal matter and should also be cleared in reasonable time.

 

--“I had remineded the hr dep and director of the company so many times but no response is coming.

You may remind in writing under acknowledgment, and you may focus on reasonable time and insist say…15 days/30 days…

 

--“applied for full and final settlement including leave encashment of last 3.6 years(through lic policy) and gratuity.

 Paid leave should be encashed by employer in FNF statement/settlement.

Gratuity shall become payable as per explanation of employee and provisions of Payment of Gratuity Act {Sec2A}.

You have stated your period of service as 3.6 years. Hence it is felt that you are not eligible.

 

However if company has mentioned your remuneration as CTC in appointment letter and has attached CTC sheet and gratuity is included in CTC sheet you may have some chance to succeed.

You may approach a competent and experienced labor consultant/service lawyer.


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