Hi, I resigned from my company 2 months ago, but my organization still has not completed my final settlement. They are holding my settlement because one of our clients defaulted on payment. What should I do to receive my final settlement amount?
From India, Namakkal
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1From India, Namakkal
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Greetings!!
Could you please mention what your designation, department, and role were in the company? How long did you serve the organization? What have you been doing for the past two months? Did you adhere to the company's separation policy thoroughly? Was the notice period served? What is the relationship between you and the defaulted client? Why is the company blaming you for the payment default? A detailed query would yield a more accurate answer.
From India, Ahmedabad
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Could you please mention what your designation, department, and role were in the company? How long did you serve the organization? What have you been doing for the past two months? Did you adhere to the company's separation policy thoroughly? Was the notice period served? What is the relationship between you and the defaulted client? Why is the company blaming you for the payment default? A detailed query would yield a more accurate answer.
From India, Ahmedabad
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Hi,
I joined the organization in 2008 as a Senior Sales Executive and resigned from the company after 4 years in 2012 as the Branch Manager for the Pune region. I gave 1 month's notice, which was against the company policy of a 3-month notice period. They informed me that they would deduct 2 months' salary from my settlement. Now, I have joined another company, but the company is holding my settlement by stating that one client to whom we are supplying goods has outstanding payments since the last 6 months. They plan to deduct the same amount from my settlement. This client has defaulted with all other vendors as well, having lost their business and closed down their shops. The company is saying that as the Branch Head for the Pune region, I am responsible for the recovery and payment as well. However, this defaulted party bounced our 4 account payee checks and disappeared from business. Despite our numerous follow-ups, the owner (signing authority) claimed to be bankrupt. The company is now considering me liable for the payment and has deducted the same from my settlement.
Please guide me on how to claim my money, as I found nothing in my offer letter stating that I am liable for any dues from the client.
Ram
From India, Namakkal
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I joined the organization in 2008 as a Senior Sales Executive and resigned from the company after 4 years in 2012 as the Branch Manager for the Pune region. I gave 1 month's notice, which was against the company policy of a 3-month notice period. They informed me that they would deduct 2 months' salary from my settlement. Now, I have joined another company, but the company is holding my settlement by stating that one client to whom we are supplying goods has outstanding payments since the last 6 months. They plan to deduct the same amount from my settlement. This client has defaulted with all other vendors as well, having lost their business and closed down their shops. The company is saying that as the Branch Head for the Pune region, I am responsible for the recovery and payment as well. However, this defaulted party bounced our 4 account payee checks and disappeared from business. Despite our numerous follow-ups, the owner (signing authority) claimed to be bankrupt. The company is now considering me liable for the payment and has deducted the same from my settlement.
Please guide me on how to claim my money, as I found nothing in my offer letter stating that I am liable for any dues from the client.
Ram
From India, Namakkal
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Your appointment letter is for a sales executive post, the position you left was a branch manager. The terms of employment must be different.
What is the job description and other rules in your firm? Is the branch manager responsible for collection and liable for it? Is there anything to show you did not follow the credit policy or due diligence in giving credit to this party?
From India, Mumbai
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What is the job description and other rules in your firm? Is the branch manager responsible for collection and liable for it? Is there anything to show you did not follow the credit policy or due diligence in giving credit to this party?
From India, Mumbai
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Arul Manickam, HR & Legal Consultant
Hi,
Greetings!
The company cannot deduct any amount from your PF (if it is part of your settlement). In the case of other components of the settlement, they can. However, you cannot be held liable for the customer's default unless deliberate negligence on your part is proven. Moreover, you mentioned that the cheques given by the customer bounced. Hasn't your company taken any legal action against them? If your company has not initiated any legal proceedings against the defaulting customers, the allegations of negligence shift to your company. In that case, they cannot blame you on the grounds of negligence.
From India, Chennai
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Hi,
Greetings!
The company cannot deduct any amount from your PF (if it is part of your settlement). In the case of other components of the settlement, they can. However, you cannot be held liable for the customer's default unless deliberate negligence on your part is proven. Moreover, you mentioned that the cheques given by the customer bounced. Hasn't your company taken any legal action against them? If your company has not initiated any legal proceedings against the defaulting customers, the allegations of negligence shift to your company. In that case, they cannot blame you on the grounds of negligence.
From India, Chennai
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Hello Ram,
Any association of your company with the client AFTER YOU LEAVING THE ORGANIZATION does not hold you responsible for default. Having said that, you've already left the organization for 2 months now, and hence you cannot be considered liable for it. As also mentioned by Arul Manickam, the company needs to take steps against the client for default. Your clarity on the terms, job role, and responsibility will help you seek correct advice.
From India, Ahmedabad
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Any association of your company with the client AFTER YOU LEAVING THE ORGANIZATION does not hold you responsible for default. Having said that, you've already left the organization for 2 months now, and hence you cannot be considered liable for it. As also mentioned by Arul Manickam, the company needs to take steps against the client for default. Your clarity on the terms, job role, and responsibility will help you seek correct advice.
From India, Ahmedabad
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