FNF and Experience Letter

Dear Client,
Sabbatical leave is typically granted by employers to help employees take extended breaks from their routine work. This leave allows employees to pursue professional courses to enhance their skills or address personal needs/emergency. The duration of a sabbatical leave is usually decided by the employer, and it can vary depending on the company's policies and the employee's role. Sabbatical leave may be paid, partially paid, or unpaid, depending on the employer's policy and the specific circumstances. You can even resign while on sabbatical unless your contract stipulates otherwise. If you tender your resignation before the end of sabbatical leave, you may loss the payment for the said period. So, if the terms of the offer letter of the Company for the settlement of F & F dues post resignation appears to you unreasonable or unjustified, you may escalate your grievance before the HR Head of the Company, failing which, serving a legal notice to the Company, you can make a complaint to the concerned Labour Commissioner or the Chief Inspector, Shops and Establishment seeking their intervention to resolve the grievance, provided you are a workman as defined under Section 2(s) of the Industrial Dispute Act, 1947. Further, you can apply before the concerned Labour Court under Section 33C(2) of the Industrial Disputes Act, 1947 claiming your F & F dues from the company. But, if you are holding the position of Manager or Administrator in the Company, you have to file a civil suit against the Company before the Civil Court seeking appropriate relief in the matter. If you are an employee of the IT Company then be informed that to restrict IT Companies from exploiting their employees by playing double standards, the Division Bench of the Karnataka High Court in the case of Commissioner of Income Tax v. Texas Instruments India Pvt Ltd (2021) 435 ITR unambiguously held that the IT sector employees considered to be "workmen" under Section 2(s) of the Industrial Dispute Act, 1947. If required, consult with an Advocate experienced in service matters for tailored advice and steps to navigate the issue effectively.

Dear Client,

This is a common and frustrating situation. Your company is likely withholding your Full and Final (FNF) settlement, including your bonus and salary, and your experience letter due to your failure to serve the notice period as stipulated in your offer letter, which often includes a clause for payment in lieu of notice. Given that they are now demanding two months' salary for the experience letter, your best first step is to carefully review your offer letter's exact clauses regarding notice period, FNF, and documentation. Subsequently, attempt a calm and reasoned negotiation, explaining your unavoidable family emergency and proposing a compromise, such as a reduced payment, adjusting the outstanding dues against the demanded amount, or an installment plan, specifically emphasizing your urgent need for the experience letter for future employment.

If negotiations prove futile, consider escalating the matter by filing a complaint with the Labour Commissioner, who can mediate the dispute and help you secure your rightful documents and dues without necessarily resorting to lengthy and costly civil litigation.