Full and final settlement pending as company client got insolvent?

I worked in this organization from June '14 to July '17. My 15 days’ salary, leave encashment, and bonus are pending with the organization. I resigned over 1 year and 2 months ago, but I still have not received my full and final settlement. The company has informed me that they do not have the funds to release the full and final settlement due to the insolvency of the company's client. Unfortunately, we do not have any other options.

Hi, you must approach the labor commissioner and file a complaint against the employer for holding back your dues. As long as your employer has not been declared insolvent, he has to arrange to pay your dues.

You first need to check if a competent court has declared the company insolvent. If so, they must have appointed an officer to realize the assets and pay off debts. You need to register your issue with that officer and also write to the labor officer.

Call me if any assistance is required at 9762382477.

Court order is a must for declaring insolvency. Otherwise, several companies will become insolvent and do this trick.

Ok sir, your stay in the company is very short, not even a month. Your intelligence contribution to the allotted client was also not significant from a general perspective. So why are you so particular about a few days' stay, especially considering the client's inability? If it is confirmed, don't feel pressured. Leave in a dignified manner.

In Andhra Pradesh, in Vijayanagaram district, several Jute Mills have closed, leaving several thousand workers on the roads for more than a decade. There are no FnF settlements or PF ESis. It would be best if you resolved the matter promptly, please.

You can take up the matter with the labor commissioner.

As per the law, it is the duty of the company to pay you, irrespective of whether the company got paid from its clients or not. However, in reality, if the company does not have money, you will only spend more time and effort to get nothing in the end. Of course, that is if the company is really in serious financial trouble due to its clients going bankrupt. If it's just a story to avoid paying you, then the labor commissioner and courts may help. But again, remember that this is expensive in terms of both time and legal fees.

Hi Anonymous,

You worked with the company for a month. Could you please let us know the reason for leaving in such a short duration and whether you have completed your notice period and relieving procedure or not? Providing these details will assist the esteemed members of this site in offering you proper assistance.

I agree with Mr. Banerjee. You were not working for their client, so it is their duty to pay you.

You can approach the Labor Commission of your region directly along with your copy of the appointment letter, last salary slip, resignation, and your F&F details. However, if they are genuinely unable to pay you, there may not be much you can do about it.

You must first verify the company's financial situation to determine if they are truly experiencing the mentioned financial difficulties.

It is advisable to personally visit the company and meet with the officials before seeking assistance from the Labor Department.

Hi,

In this case, you fall under the payroll of the company and not their client. Hence, the company has to pay you for your services irrespective of the payment received from their client. As stated by other members, you can approach the Labour Commissioner to get this issue resolved. However, it would be better to do a cost-benefit analysis as the salary you are owed is for less than a month, and the legal process to recover it can be quite expensive and time-consuming.

Regards,
Sairam Bandi
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If insolvency is declared by the court, there must be an IRP professional (Interim Resolution Professional). You have to submit your dues claim to the IRP by Form-D with relevant documents like a resignation letter, a release letter, a full and final settlement statement, Aadhaar card, PAN card, and a bank passbook. The court will clear your dues after finalization.

Regards,
Aloke Naskar