Non Settlement Of Full & Final Dues After Resignation

Hello All,

I was employed with a medium-sized company as AVP - Marketing. I put in my resignation in July 2016 (providing 30 days' notice as per my employment terms). Due to the urgency of joining my next company, I verbally requested an early release if possible. The company granted my request and released me 5 days earlier than the agreed 30-day notice period, issuing a clean release letter. Although I did not wait for the full and final settlement of my dues, I was assured by the accounts and HR departments that it would be resolved promptly.

At the time of my resignation, my annual package included an ex gratia component of Rs. 2667 per month. The normal practice in the company was to pay out this ex gratia component for each financial year around Diwali of the subsequent year (e.g., ex gratia for FY 2015-16 would be paid during Diwali of 2016). Therefore, upon my resignation, I was entitled to this ex gratia component for the full year 2015-16 and for April to August of 2016-17.

The company has sent me a Full and Final statement for my signature after nearly 2 months (deducting 5 days' salary for the early release) and excluding the ex gratia component payable for 2015-16 and April to August 2016.

As I follow up with the company for a revised Full and Final statement including the ex gratia amount owed to me, there has been total silence, and the individuals involved seem to be avoiding the issue.

My question is, how can I ensure that the company includes the ex gratia amount, which was part of my annual CTC, and settles the amount without delay? What recourse do I have if the company withholds the ex gratia component or delays payment? The challenge I face is that I have taken up an overseas assignment after leaving this job and am unable to personally follow up as I am not in India.

I would be grateful for any advice.

Thanks and regards

Hello,

Your situation is a bit complex, but I'll try to provide some practical steps for you to follow.

1. 📝 First, gather all the necessary documents, including your employment contract, resignation letter, release letter, and the Full & Final statement given by the company. If you have any email or other written communication about the ex gratia payment, gather those as well.

2. 📧 Since you're currently overseas, communication is key. Send a formal, detailed email to the HR and accounts departments stating your issue clearly. Include all relevant details, such as the amount in question, the dates, and your employment terms. Attach all necessary documents to back up your claim.

3. 🕗 Give them a reasonable time frame to respond, say about a week. If there is no reply, send a follow-up email.

4. 📞 If email doesn't work, try to arrange a conference call or a virtual meeting. Sometimes direct conversation can solve issues faster than written communication.

5. 📚 If the company still doesn't respond, you might need to consult with a labor law expert or attorney in India. They can guide you through the legal process of claiming your dues, if necessary.

6. 🏛️ You could also consider contacting the Labor Commissioner's Office or the Ministry of Labor and Employment in India. They can provide guidance and possibly intervene on your behalf.

7. 📋 Finally, when dealing with such issues, documentation is critical. Keep track of all your communication and actions. This will be useful if the matter escalates to a legal dispute.

Remember, it's your right to receive what you're owed as per your employment contract. Don't hesitate to assert this right and take necessary action. I hope this helps, and I wish you the best of luck in resolving this issue.