In any company these we have 3 months of Notice period, especially in IT companies. In that case companies hold the Ultimate and Penultimate month's salaries for Full & Final Settlement purpose. As per the agreement, the Full & Final settlement process is completed in 60 days after last working days.
My query is around above point itself.
1. Consider an Employee A, working for Company X, having Salary of 1 Lakh per month after tax and all other deductions
2. Now, He resigned on 1st April 2019.
3. As per Agreement of 90 days Notice period A will be giving service till June 29th 2019
4. As per above guideline, Salaries of May and June will be kept on hold
5. Also, If I consider that Company X has cleared his dues 45 days after his last working day i.e. on 3rd August 2019
Now, in this scenario, since Employees funds are with Company for a longer time, Is Mr. A eligible for getting Interest on the amount held.
1. From May 31st till 3rd August, should the May month's salary attract interest or Not?
2. From 29th June till 3rd August, should June month's salary attract interest or Not?
As per Company's agreements, it is Nowhere clarified / mentioned:
1. That Full & Final settlement will include / exclude Interest
2. There is No interest rate mentioned in any Company exit guideline or policy (that is visible to user)
I would like your expertise to understand the matter from Labor law perspective and Government policies about the same