Company delaying my full and final settlement. What should i do?

In Labour & Service Law

I was working with a company where I was asked to resign on 7th January 2014 due to cost cutting. They told me my Full & Final will be done within a week. However, after 14 days of my resignation when I called them to follow up they said that I haven't settled some petty cash in my company wherein I had already settled it more than an year ago.

Now they say its still pending and are asking me for a documentary proof that it was settled back then, and my Full &Final will be processed only post that.

Please help.

Answers (1)

217 votes

Firstly, the company followed unfair labour practice by asking you to resign. If the company wanted to reduce its staff, it should have retrenched you as per law and pay the full and final along with the retrenchment letter instead of asking you to resign, which amounts to forcible resignation. 

That is the way prescribed under the law for retrenching the staff. Any how, now your grievance is limited only to receive the full and final settlement amount and if the employer is refusing it on frivolous grounds, you may file a complaint before the Assistant Labour Commissioner of your area. 

The Assistant Labour Commissioner will initiate conciliation proceedings and call the H.R. Department Head to his office and in your presence, he will ensure that the employer pays your final settlement. If any small amount is the bone of contention, that can be reduced out of your full and final settlement and that amount should not be a reason for them to refuse you the final amount altogether.

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