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Rajesh (Lead Consultant)     02 August 2011

Problem with full and final settlement

Hello,

I was working with an IT company in Secunderabad area.

I resigned from my services on 6th July 2011 and the management of my organization releived me from my services on 29th July 2011.

I got the annual increment effective 1st April 2011 but out of that only 50% of the incremental amount was disbursed.  Balance was supposed to be paid along with June month salary.  But unfortunately my organization did not pay the same.

During my relieving, i contacted the HR department regarding the unpaid salary amount.  They told me that i am not eligible to receive the same as i had already resigned.  But as per the service agreement, if any employee resigns within 3 months from the date of increment, the incremental salary would not be applicable.  As i had resigned on 6th July, and my increment was effective 1st April, i had fulfilled all the requirements of the company to be eligible for getting the salary increment.

When i quoted the same, my HR came up with a new thing of Service agreement (Bond) which i had never signed.  According to him, i need to reimburse the company with 4 months salary which is really absurd.

Can anybody please let me know how i can legally fight this case.  Like me, there are other persons also who had gone through the same in my organization.



Learning

 3 Replies

Kumar Doab (FIN)     02 August 2011

In your post you have mentioned "But as per the service agreement, if any employee resigns within 3 months from the date of increment, the incremental salary would not be applicable"

Since you have quoted from this  service agreement, kindly confirm if a copy of the agreement  is available with you. Or has the HR has shown it to you?

This agreement needs to be studied carefuly.If there is no clause that employee shall submit 4 months salary to company then you dont need to.

You have also mentioned that you have not signed any service agreement. Do you mean that it is a forged document? This needs to be clarified by you.

You are within your rights to get balance 50% of the increment amount.

Have you received the F&F?

You have posted "Like me, there are other persons also who had gone through the same in my organization."

All of you can join and avail the services of one competent  local service lawyer, and show all records and documents.

Your lawyer can send a legal notice to the company with the list of all ex. employees and unfair treatment by the company to all employees.

Rajesh (Lead Consultant)     02 August 2011

Hi Kumar,

Thanks for the reply.

Yes, i do have the copy of the service agreement which was signed at the time of my joining the company.

But reimbursement of 4 months of salary is not a part of this service agreement.  When my employer gave me an increment for this period, they asked me to sign a separate service agreement for which i have not given consent.  HR is talking about the same as i have given acceptance to that through mail but i have never signed the hard copy of the service agreement.

Regards,

Rajesh

Kumar Doab (FIN)     02 August 2011

Physical document with original signatures should be required for specific performance.

Opinion of learned members and experts is sought.
 


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