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Vaneet Bahia   09 August 2023

My full & final amount has been adjusted against the bonus, even after the company said no recovery

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?
 



Learning

 6 Replies

vasantharao venkatarao (Independent professional )     09 August 2023

The issue is quite tricky. While on the face of it the issuance of NOC should be held against the employer and the principle of promissory estoppel be invoked, it very much probable that the principle of unjust enrichment can be relied upon to make the recovery.

Vaneet Bahia   09 August 2023

So chances are it will go against me based on the promise and signed contract.
NOC will be considered as Human error right??

T. Kalaiselvan, Advocate (Advocate)     09 August 2023

You issue a legal demand notice to the employer demanding your F & F settlement amount....

You can refer to the No due certificate and the relieving letter and the department's commitment to settle the asme within 15 days can be mentioned in the legal demand notice

After that if there is no response then you can file a money recovery suit against the company claiming the said dues with interest

Vaneet Bahia   09 August 2023

But My doubt is what about the document which I have signed against Rs 3 lakh. They can say that it was account error from their end and the said amount has not been waived off...

They can always show the signed letter?? Is the case in favour of me??

Real Soul.... (LEGAL)     10 August 2023

They have mistakenly given you NOC for recoveries but you should be thankful that they still not started recoveries under the signed bond. The signed bond must be having terms and conditions and you should read that carefully. Remember in any time in future they can claim recovery for the amount if the bond specifies that amount will be recoverable anytime. It is better to ask them to settle the amount of 1.32 lacs as against all the claims and get them issue NOC for clearance and for no future claims whatsoever.

Vaneet Bahia   10 August 2023

Does The current NOC which they have given is of no value?? Can it be revoked under human errror??


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