• Recovery of Advance Amount

I have been given 3000 GBP as advance for an onsite assignment in 2012 September which should be recovered in 4 equal installment from my initial 4 months salary. I came back in 2016 and lost track of it and I couldn't remember whether the advance was recovered or not. Now I have resigned and joined a new company and during F&F my previous employer is saying that they didn't deduct the amount from my overseas payment and they will be recover during my F&F settlement. Is that legal to do the recovery after such a long period?
Asked 7 years ago in Labour

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8 Answers

If the debt is three year old it is time barred if not acknowledged so now company cannot recorver same neither from Full and final settlement nor by filing a suit the suit is time barred.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

  1. As per the information mentioned in the present query, makes it clear that the amount so has not been deducted till now.
  2. Now, even if I presume that you have forgotten to keep track of the same then it was the libility if the employer to do the same.
  3. Doctrine of delay and latches would come into picture now for the employer.
  4. And also, you will have to see the agreement of employment to see, if any such condition is there or not for recovering it at he time of full and final settlement.
  5. If it is not there, then they can’t do it for sure.

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

If it is documented and you can prove that this advance amount was to be strictly deducted only from  initial 4 months salary, this payment cannot be deducted now. You may oppose the move of deducting this payment from your FnF. 

Vibhanshu Srivastava
Advocate, Lucknow
9763 Answers
323 Consultations

recovery should have been made within period of 3 years 

 

it appears that claim is barred by limitation 

Ajay Sethi
Advocate, Mumbai
99798 Answers
8147 Consultations

Full & Final Settlements commonly known at the FnF process is the procedure required to be followed by the employer after the employee has resigned from his services.if you have proofs statements the  you can claim, if you don't have then you can not go legally against employer.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Dear Client,

In the matter of govt. servant, recovery after 5 years not permitted and no recovery from 3rd and 4th class employees. Your case dose not fall in these categories, so it can be recovered. But on the basis of parity with govt. employees, you can challenge this before labor commissioner.

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

If any amount has been advance to you it is your responsibility to get it recovered and to know it in case it is not recovered in your office will provide the accounts of your payment and legally you are bound to pay back the amount from your final settlement amount

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

You can ask for the details about the advance amount granted to you and if you have any evidence for the deductions of the same in the past you may produce it before them and ask them to not to deduct any amount from F&F settlement.

If you dont have any evidence then you may have to accept their demand since it is your fault to not to have followed it up so far for the past 6 years.

The company can recover their dues from the terminal benefits, there is no legal infirmity in it.

T Kalaiselvan
Advocate, Vellore
89998 Answers
2496 Consultations

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