Legal Question in Employment Law in India

My previous employer where I was working as an software engineer is unreasonably delaying full and final settlement. I have served required notice period, received Experience certificate and completed all the handover formalities there is nothing due from my side. As per company policy they have hold my [Last month salary + last quarter's bonus + Amount for Pending Paid Leaves] which is payable in 45 days from my last working day. Its more than 2 months now but I have not received any response from them. I have tried sending several reminders to HR through Telephone & Email. I have already escalated the case to company's MD through email but I have not received any response (Not even reason for delay or any assurance for settlement). Followings are my questions :

1. What should be the wait time before approaching lawyer or taking any legal actions ? (How many post to 45 days should i wait)

2. Is it legal on Employer's part to hold my money for 45 days or more ?

3. What should be the interest rate that can be charged to my employer for the all the days they delay ?

4. Can I charge them for all legal charges paid to lawyer, court etc.. in order to recover dues ?

Any help in this regards will be highly appreciated. Thanks in advance.


Asked on 9/19/15, 3:16 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

20.09.2015

Dear Sir / Madam,

The Company remains legally liable to settle an employee's full and final settlement dues on or prior to the employee's last working date. You should first determine your claim amount with workings and instantly write a final reminder letter to the MD requesting the Company to settle your dues within 7 days, failing which provide you with an explanation mentioning reason(s) for withholding your claim. In my view, should the Company fail to respond to your final reminder, the easiest, cheapest and quickest approach to resolve and settle the matter thereafter is to lodge a Police complaint against the Company for "cheating" (Section 420 of the Indian Penal Code). The sequence of action advisable and recommended is first : Police, and then : Lawyer and Court.

Interest rate : Simple interest of ranging from 6% to 12% per annum and legal suit with all costs.

Regards,

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Answered on 9/19/15, 10:16 pm


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