Company holding my Full and final settlement.

989 votes

Hello being an employee in the management as National Sales Manager, employee and employer are bound by the terms and conditions of the employment contract I.e appointment letter. Presuming you have complied with the condition of 3 month notice before leaving the job the employer is duty bound to clear your pending dues towards full and final after completing the exit formalities. You can send a legal notice to the employer and invoke your legal right and demand the full and final. please share more details to advice further.

Advocate Ranbir Singh LawRato

650 votes

According to the facts and circumstances , as stated by you, your case might not be covered under the Labour Acts, hence the suitable remedy would be to file a suit for the recovery of the balance. Before proceeding with the suit, get the Employer served with a legal notice from an Advocate and if they refuse the payment, proceed with the suit.
Devansh Arora
Advocate

LawRato LawRato

140 votes

1. Full and Final Settlement in India:
   • Full and Final Settlement, often referred to as FNF Settlement, is the process through which an employer clears all outstanding dues and financial obligations to an employee when they leave the company.
2. Legal Framework:
   • Full and Final Settlement in India is governed by various labor laws and regulations. These laws vary depending on the state in which the company is located, but they typically cover aspects such as payment of salary, bonuses, provident fund, gratuity, and notice pay.
3. Timelines for Settlement:
   • There are no fixed timelines specified under Indian labor laws for completing the full and final settlement. However, employers are generally expected to settle these dues promptly after an employee resigns or is terminated.
4. Legal Action for Delayed Settlement:
   • If an employer fails to complete the full and final settlement within a reasonable timeframe, an employee can take legal action. This may involve sending a legal notice to the employer demanding the settlement or approaching labor authorities.
5. Legal Notice for Full and Final Settlement:
   • An employee can send a legal notice to their employer through an attorney, demanding the pending dues and specifying a reasonable timeframe for settlement. This legal notice can serve as a formal warning to the employer.
6. Employee's Rights:
   • Employees have the right to receive their full and final settlement, including salary, bonus, leave encashment, gratuity, and other dues as per their employment contract and labor laws.
7. Gratuity and Provident Fund:
   • Employers are obligated to settle gratuity and provident fund dues as part of the full and final settlement process. These benefits are governed by specific laws.
8. Documentation:
   • It is advisable for employees to maintain clear records of their employment contract, salary statements, and communication related to their resignation. This documentation can be crucial in case of a dispute.

In conclusion, full and final settlement in India is a legally mandated process, and employees have the right to receive their dues promptly upon leaving a company. If an employer delays or refuses to settle, employees can take legal action, including sending a legal notice. Legal remedies are available to ensure employees receive their entitled dues as per labor laws and employment agreements.

Advocate Chikirsha Mohanty LawRato