My full final amount has been adjusted against the bonus
8 months ago
I have a below situation with my ex-employer.
I was given Rs.3 lakh by employer in Jan 2022 due to new year scheme they have initiated for new joiners like me and got me signed 2 years of bond in a separate letter. Nothing was mentioned about it in the offer letter but a separate letter was signed specifically for this.
I resigned in Feb 2023 after 1.25 years and I asked the Finance team in March just to check if there are any dues against me and they said nothing is due and there is no recovery, even though there was a bond of 2 years for Rs.3 lakh but by mistake they said No recovery.
So I served my notice period and left the company on 19th April. Company gave me all clearances with NO due certificates saying there is no recovery. Even they gave me relieving letter saying there is no recovery at my end.
Company hold my last month salary to settle it in F&F when I was on notice period. They sent me a Full & final settlement slip saying I will be getting Rs.1.32 lakh from employer. Finance Team emailed me saying with in 15 days it will be credited.
At the very last day when it was not credited, I asked them and they come back saying there have found a recovery of Rs.3 lakh, due to which they have not processed the amount of F&F which is Rs. 1.32 lakh. After that I have not heard back from them. This F&F amount is also going to show into Form16 for which I have to pay taxes @30% for the amount I have not got.
I am following up with them saying it was mentioned earlier to me that there was no recovery and based on that I have taken further steps but suddenly you have found your mistake and not processing the F&F. I asked them to pay the F&F and stay on what has been conveyed earlier but I am not getting replies from their end. They are not responding to email and not even picking up the phone call.
My questions are:
Can I claim the F&F amount legally since they have already given me NOC and no recovery certificates before they found their mistake? Should I pursue it legally if it is in my favor because it was company's mistake of conveying things incorrectly.
If the company goes legal way to recover rest of the amount, how likely is that the case is in their favor considering it was their mistake in accounts and they have conveyed things of NO recovery and given NOCs?
It is suggested that if you are not a Manager/Supervisor but a workman as defined in Section 2(s) of the Industrial Dispute Act, you contact the office of the Labour Commissioner concerned to file a complaint against the employer for redressal of your grievance, failing which you may file an application u/s.33C(2) of the I D Act before the concerned Labour Court claiming dues from your employer. Otherwise, you must bring a civil complaint in Civil Court for proper remedies in the area of serving legal notice on the employer. Contact a Corporate Lawyer who is knowledgeable about the subject for advice and next steps.
A.Dear Sir
Please approach the following authority or similar authority in a state
The Office Commissioner of Labour
Section 12 in The Industrial Disputes Act, 1947
12. Duties of conciliation officers.- (relevant section 12(2) of ID Act)
(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall hold conciliation proceedings in the prescribed manner.
(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.
(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliationofficer shall send a report thereof to the appropriate Government 1 or an officer authorised in this behalf by the appropriate Government] together with a memorandum of the settlement signed by the parties to the dispute.
(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at.
(5) If, on a consideration of the report referred to in sub- section (4), the appropriate Government is satisfied that there is a case for reference to a Board, 2 Labour Court, Tribunal or National Tribunal,] it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.
(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: 3 Provided that, 4 subject to the approval of the conciliation officer,] the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.]
A mistake if committed by default unintentionally or without any ulterior motives is treated as human error and is pardoned on scrutiny of fact and reasons behind the mistake. And if such a mistake is detected before the final discharge of your settlement dues, even then the Company cannot withhold your F & F Dues once a relieving letter is issued on submission of your resignation without serving the bond period. The validity of Employment bonds can be challenged on the basis of Section 27 of the Indian Contract Act,1872 which prohibits any agreement in restraint of trade and profession. The law states that an agreement (employment bond) will be illegal only if it restrains someone from exercising a lawful profession/ trade/ business. As per the mandate of Section 27, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed in the employment bond to serve the employer for a specific period of time. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. The following are the requirements of a valid employment bond agreement. 1) The agreement must be signed by the parties with free consent. 2) The conditions stipulated must be reasonable and 3) The conditions imposed on the employee must be proved to be necessary to safeguard the interest of the employer. 4) The employment bond is to be executed on a stamp paper of appropriate value in order to be valid and enforceable. So, for any type of arbitrary action on the part of the Company, it may be suggested that if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then for such an arbitrary action and unfair labour practice, reach out to the office of the Labour Commissioner concerned for filing a complaint against the employer for redressal of your grievance failing which you may file an application u/s.33C(2) of the I D Act before the concerned Labour Court claiming dues from your employer. Otherwise, you have to file a civil suit before the Civil Court for appropriate relief in the matter serving a legal notice to the employer. Reach out to a Corporate Lawyer experienced in the subject for guidance and steps.
Anonymous
Replied 8 months ago
What if the employer has given me the extra money joining bonus apart from CTC to sign that bond and return the money back if not fulfilled. Is that valid? It is not signed with stamp paper but only signed on a pdf copy. Please suggest.
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