• Full and Final Settlement

Writing on behalf of my spouse. Its been 5 Months that my spouse has resigned, from the company, We have tried to reach out HR for the last 3 months, the HR says, we will process your F&F next month, now when confronted again, they are asking us to forgo 50% of the F&F amount. They are saying we have been impacted by COVID crisis, But my spouse resigned, completed the notice period (1st Week of March) before the COVID crisis, I feel they have not managed their finances well and just playing around with us and giving excuses of COVID. I plan to write to their CEO and Head of HR asking them release my F&F, but not sure if that will help me in anyway. Kindly suggest what to do so that we don't end up in a legal mess fighting over our dues. I would be ridiculous if I spend the same amount in Legal fees to get my F&F amount. Please suggest.
Asked 3 years ago in Labour

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27 Answers

- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.

- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice. 

- Further, no employer can refused to return the original certificates or to issue relieving letter , and to refund the full and final payment to the employee .If they are doing so, their act is illegal, unjustified and against the fundamental rights of the employee.

- Further, section 27 of the Indian Contract Act prohibits any agreement in restraint of trade and profession.

- Since, she has already serve the notice period and tendered her resignation before the Covid-19 , then the said company is bond to refund her full and final settlement amount , and there is no law even to withhold the amount of an employee on the ground of lockdown etc. 

- Your wife should send a legal notice to the said company , and thereby ask for the F & F amount within 7 days of time,. and if no response then file a petition before the court. 

Mohammed Shahzad
Advocate, Delhi
13206 Answers
197 Consultations

5.0 on 5.0

They are totally wrong and biased there is no way to forego so claim full amount if they are not able to pay full and final one time , can pay later on but within six month half of the amount so settle accordingly but don't forego, what about gratuity ask them which has to be calculated on the last pay drawn and other legal dues likely.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

Hello,

  1. Your spouse must definitely escalate the matter to the Head of HR of the company and the CEO without any doubt and wait for reasonable time for a response. Do not settle for relinquishing 50% of the F&F as that has no justification at all as he already had completed the formalities before the lock down started .
  2. If the company fails to respond favourably to your request for the release of F&F  you must engage a lawyer and issue a legal notice/Demand notice to the company demanding the F&F.
  3. If you are constrained by the company to approach the courts to file for the recovery of the amounts due, you can recover the cost for litigation as well from the company.

S J Mathew
Advocate, Mumbai
3547 Answers
175 Consultations

5.0 on 5.0

Refer to the job contract to find out her terminal benefits.

Her employer is bound to release her full stipulated and statutory benefits after completion of her tenure on full satisfaction. 

If they refuses to release the same you have the option of filing a civil suit for recovery of money. 

Before that send them a legal notice seeking release of her full dues.

Devajyoti Barman
Advocate, Kolkata
22815 Answers
488 Consultations

5.0 on 5.0

You can make complaints to Labor Commissioner and company registar too. All the above issue.

Ganesh Kadam
Advocate, Pune
12926 Answers
254 Consultations

4.9 on 5.0

Serve them with a legal notice and than file a complaint against them in the court under employee protection act 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

Issue legal notice to company to pay outstanding  dues 

 

if company fails t pay file summary suit under order XXXVII of code of civil procedure to recover dues with interest 

Ajay Sethi
Advocate, Mumbai
94684 Answers
7525 Consultations

5.0 on 5.0

Issue legal notice to company not CEO 

 

then file summary suit 

Ajay Sethi
Advocate, Mumbai
94684 Answers
7525 Consultations

5.0 on 5.0

Hello,

  1. Do not say that you will be sending a legal notice, instead say that you will initiate appropriate legal proceedings to recover the dues. Let your email be plain and simple requesting to settle the F&F within 15 days without any provocation.
  2. If you do not receive a positive response or they are evasive in their reply, you need send a legal notice.

S J Mathew
Advocate, Mumbai
3547 Answers
175 Consultations

5.0 on 5.0

No, this does not count threat.

Proceed

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

4.8 on 5.0

Informing the higher authority about impending legal action is never a threat. 

Devajyoti Barman
Advocate, Kolkata
22815 Answers
488 Consultations

5.0 on 5.0

You have absolute right to claim F&F. Let your spouse itself send email to CEO and HR, don`t mention of any legal proceeding. IF no response than after 7 days, send another mail and caution them of legal consequences if F&F not release.

And first of all, manage to collect what they are giving, lest that also get stucked.

Yogendra Singh Rajawat
Advocate, Jaipur
22623 Answers
31 Consultations

4.4 on 5.0

You are informing them to take recourse of your statutory right, this is not a threat.

Yogendra Singh Rajawat
Advocate, Jaipur
22623 Answers
31 Consultations

4.4 on 5.0

If you sent written application to labour commissioner that is sufficient. 

Ganesh Kadam
Advocate, Pune
12926 Answers
254 Consultations

4.9 on 5.0

1. You can try contacting CEO of your wife's employer but I don't think that it will be beneficial because HR cannot take decisions of cutoff of full and final settlement in their own without back from management.

2. You should first tell them orally about taking legal action against them for not clearing the dues if HR doesn't respond properly even after warning then I think it would be better to serve them with legal notice for clearing full and final settlement amount with fees of lawyer. 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

All the corresponding Mrs must be address to the HR manager in this regard even if you are sending a legal notice that should be address to HR manager and if it is not taking any action in your full and final settlement then you have to file proper suit in district court after legal notice in this regard.

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

Write in a soft manner that if full and final payment in full is not possible then pay in two installment of 50% each within six months but you are not going to forgo any amount as this was not settled earlier before leaving the organization and impact of COVID is also effected you and your family, if not paid within six months the full amount either in full and two installments then you will take shelter of law the responsibility will be of the organization.

Koshal Kumar Vatsa
Advocate, Gurgaon
2283 Answers
3 Consultations

5.0 on 5.0

If the F& F is not more then there is no point in legal proceedings as it will cost a lot. You can only try to send them a notice through advocate which will cost you 10 to 15k and notice may result in release of your F&F

Prashant Nayak
Advocate, Mumbai
31914 Answers
179 Consultations

4.1 on 5.0

If Company doesn't release  F& F of your spouse and admant to withhold it sine dine then the option is only legal steps against the Company for recovery of dues. 

You have to decide the steps for or against the Company while taking recourse for recovery of dues. 

If recovery dues are more go for legal steps and if it is less than get settled the amount the way Company is suggesting you. You have only  two options lawfully and peacefully to recover your dues from the Company which have been discussed in the present post. 

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

5.0 on 5.0

Dear Sir/Madam,

It is suggested that you write to CEO and HR and then serve a legal notice, if the things are not settled. 

Ganesh Singh
Advocate, New Delhi
6757 Answers
16 Consultations

4.5 on 5.0

- No, it is not a threat , as you have your right to approach for getting the said amount , which is not paid by the company . 

- However, before sending a legal notice , you can move an application for the same. and if refused then start legal action. 

Mohammed Shahzad
Advocate, Delhi
13206 Answers
197 Consultations

5.0 on 5.0

You first arrive at the amount that you are due to get to get it from the company.

Then you submit a representation in writing sent by registered post directly to the MD or the top management of the company venting out your grievances  of not getting your F&F settled despite your best efforts to get them in the past.

If your representation do not invoke a favorable response, you may contemplate to resort to legal action for recovery of your dues.

Before that you may discuss with an advocate about the legal fees and other legal expenses involved in this if at all you may file a recovery suit.

You can take a decision based on the circumstance in furtherance.

 

 

T Kalaiselvan
Advocate, Vellore
84882 Answers
2189 Consultations

5.0 on 5.0

First of all please remember that you cannot write or approach the company's management on behalf of your wife.

Your wife only has to do all the correspondences and initiate actions in this regard.

Secondly, pleas do not resort to communicate through email once again, because that would not create an evidence  in case you would plan to resort to legal action for recovery agaisnt the company.

Thirdly, remember that the HR is also an employee of the company  and the HR is not the decision making authority neither the CEO.

The company's CMD or the top  management only can pas an order in this regard.;

You should maintain to have correspondences with the company in writing in future so that the company will become aware of your motive behind this and would respond to your correspondences immediately.

You can issue the legal notice to the company after your efforts to approach the top management of the company failed to invoke any positive response  and you are not meted out with justice.

The money recovery suit can be filed after this legal notice also failed to fetch you a favorable reply or result.

 

T Kalaiselvan
Advocate, Vellore
84882 Answers
2189 Consultations

5.0 on 5.0

A legal notice has to be aent to them and otherwise a case has to be filed. You will gwt your compensation along with interest and litigation expenses.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

You should write a letter to the higher authorities and if they don't respond then send a legal notice.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

We suggest you to send the company the legal notice through a lawyer and thereby demanding outstanding dues. In case they fail to give, despite legal notice, you can file a suit for recovery thereby demanding your salary along with 24% interest and cost of litigation .

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

it is not a threat, You may issue legal notice to company not to CEO. 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

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