Amount recovery by the company on Exit
8 months ago
I resigned from the company and had cleared all the exit formalities also I have served the notice period, submitted all the assets and completed all the exit procedures. But during my Full and Final settlement company sent me recovery letter stating that I have to pay company dues for using the leaves benefit which the company has provided or else the legal action will be taken. Going through the company policy I found that there is no such line mentioned about leave recovery during the employee's exit. When I asked for clarification from the HR, there is no response from them regarding this. I have sent multiple reminders stating clarification but there is no response. What do I do in this case? How can I go legally in this matter since there is no reply from company's side?
When you tender your resignation from the service following the conditions of your contract of employment and serve your notice period, your relationship with the company is automatically seized on the expiry of the notice period. Moreover, in compliance with the formalities with regard to exit policy and the disbursement of F & F Settlement dues, and in the absence of specific stipulation in the Co's policy specifying recovery leave benefits at the time of exit of an employee, the Company is dutybound to relieve you from service along with F & F settlement dues. Such an action on the part of the Company is highly unjustified and illegal and needs to be challenged before the concerned authority/Court. So, in the prevailing situation, if you are not holding a position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then you need to serve a legal notice to your employer/company and file a complaint against them before the concerned Labour Commissioner for redressal of your grievance failing which you may file an application u/s.33C(2) of I D Act before the concerned Labour Court directly claiming entire dues payable by employer on cessation of employment. However, if you are not a workman as defined u/s.2(s) of the Industrial Dispute Act, then you have to approach the Civil Court for recovery of dues from the employer and redressal of your grievance. In case you need any legal services/assistance in this regard, you may contact our legal team with all the relevant papers.
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