One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr. X worked for ABC Company Ltd. in City A and resigned in October. Despite completing his full notice period and all assigned tasks, the company marked him absent for 4 days without justification and deducted salary accordingly. Three months after leaving, Mr. X has not received his final settlement, experience letter, or proper relieving documentation. The company management refuses to respond to his communications and has created negative remarks in his employment records. Mr. X completed all handover procedures and fulfilled his contractual obligations, but the company is withholding his legitimate dues and creating obstacles for his future employment opportunities.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

• Document all communications with the company including emails, messages, and call records
• Calculate exact amount of pending dues including salary, bonus, gratuity, and provident fund
• Send a legal notice demanding final settlement within 15 days through registered post
• File complaint with Labour Commissioner if company fails to respond to legal notice

Applicable Sections of Law

This case involves multiple employment law violations. Under the Payment of Wages Act, 1936, employers must clear all dues within 7 days of termination. The Industrial Disputes Act, 1947 covers wrongful deduction of wages. The Contract Labour Act and various state labor laws mandate proper documentation. The Employees’ Provident Fund Act governs PF settlements. Additionally, wrongful deduction of salary without valid reason can attract provisions under Section 316 of Bharatiya Nyaya Sanhita (BNS) for criminal breach of trust, while fabricating attendance records may fall under Section 318 BNS for cheating.

If You Are the Complainant

• Gather all employment documents including appointment letter, salary slips, and resignation acceptance
• Calculate total pending amount including salary, bonus, leave encashment, and statutory benefits
• File written complaint with Regional Labour Commissioner within prescribed time limits
• Approach Employees Provident Fund Organization for PF withdrawal if company delays
• Consider filing case in Labor Court if conciliation fails to resolve the dispute

If You Are the Victim

• Maintain detailed records of all attempts to contact the company and their responses
• File complaint with Grievance Redressal Officer if company has internal mechanisms
• Approach trade unions or employee associations for collective bargaining support
• Consider filing FIR if company has committed criminal breach of trust with your funds
• Explore civil suit options for recovery of dues and compensation for mental harassment

How the Police Behave in Such Cases

Police typically treat employment disputes as civil matters initially. However, if there’s evidence of criminal breach of trust or cheating, they may register FIR under appropriate BNS sections. They often advise approaching Labour Courts first. Police intervention becomes more likely when large amounts are involved or when there’s clear evidence of fraudulent practices. Documentation and legal notice strengthen the case for police action.

FAQs People Normally Have

Can company deduct salary for absent days during notice period? Only if genuinely absent and not on approved leave. Arbitrary deductions are illegal.

How long can company take for final settlement? Maximum 7 days under Payment of Wages Act, though some states allow up to 30 days.

What if company refuses to give experience letter? You can approach Labour Court for direction to provide proper documentation.

Can I join new company without relieving letter? Possible but may create future complications. Better to resolve through legal channels.

What Evidence Is Required?

• Employment contract and appointment letter showing terms of service
• Resignation letter with company acknowledgment and acceptance
• Salary slips for last six months showing regular payments
• Email communications regarding notice period completion and handover
• Bank statements showing salary credits and any pending amounts
• Witness statements from colleagues regarding actual attendance during notice period
• Company HR policies regarding final settlement procedures and timelines

How Long Will the Investigation Take?

Labour Department investigations typically take 2-4 months depending on case complexity and company cooperation. Labour Court proceedings may extend 6-12 months. EPFO settlements usually process within 30-45 days once proper documents are submitted. Timeline can be expedited with proper legal representation and complete documentation. Early legal intervention helps in faster resolution.

Advocate Sudhir Rao, Supreme Court of India