Kanta Malini
I was terminated 3 years ago and the termination is under litigation in Court. Now, after 3 years, the employer has suddenly issued a Full & Final Settlement statement asking me to settle the due towards "Notice Period Recovery". But I don't have to pay anything towards Notice Period since I was terminated without Notice/Compensation - it was not a Resignation.

1. Is it valid for the Employer to issue a Full & Final settlement after 3 years?
2. How to reverse this false claim asking me to settle the due towards "Notice Period Recovery"?

From India, Bengaluru
Madhu.T.K
4246

If the matter is pending before the Court it is better not to sign the F&F statement. But you can keep it as an evidence that may be used in the proceedings.

I understand the situation like this. You were terminated from service without paying any compensation. They were supposed to give to notice pay and compensation. You approached the court, and the matter is pending with the court. Now the employer wants that you should sign a statement of amount due through which you will be accepting the amount as adjusted against notice pay payable to the company. If you were terminated, the question of notice pay from your side will not arise. Therefore, never accept it.

F&F can be issued any time. If the settlement is made either through an award of the court or through a conciliation, the employer can prepare a statement of amounts due and make the employee sign it. Therefore, let the Court come to a decision.

From India, Kannur
PRABHAT RANJAN MOHANTY
588

You should not reply or do anything to the notice of the employer, if the matter of termination is pending before the court. You certainly can bring this matter before the court on coming date, how the employer is playing foul game to drag the case from the track.in general the Full & Final to be done by the employer in close of 48 hours from the time of termination/separation, anything beyond the period is illegal except in the case of any accepted conditions signed during the employment or laid-down policy of the establishment.
From India, Mumbai
Kanta Malini
Thank you for the replies [Madhu.T.K 4207; PRABHAT RANJAN MOHANTY 583]

The reason I posted these questions was because I wanted to find out who is going to be held responsible for this delay of 3 years to issue digital F&FS (by email).

1. Is it the duty of the employer to provide F&FS?
2. Or is it the responsibility of the employee to ask for it and obtain it?

I just want to be sure that I am not going to be held accountable for the delay in F&FS.

And also it should not appear that the F&FS is deemed to be correct by default because it is made to appear that I have not challenged the F&FS for 3 years.

From India, Bengaluru
Madhu.T.K
4246

F&F means a statement of Full and Final settlement, and it is nothing but a statement prepared by the employer showing what all are available to the employee and what all are deductible from that. An employee cannot prepare and send such a statement to the employer and claim that the amount mentioned therein should be paid to him, rather the employer will prepare it and ask the employee to sign it as accepted so that he can pay the amount. If there is any delay the employer is solely responsible.
From India, Kannur
PRABHAT RANJAN MOHANTY
588

Dear
The most irregularities find with the employer without professional approach and knows the pro's-cons of Legal complications we'll. Please take the note. You can discuss the issues by calling the person whom u consider best.

From India, Mumbai
Lex Loretta
If the litigation is pending, then do not sign any F & F settlement of employer.
From India, New Delhi
Kanta Malini
@Madhu.T.K 4207 -> Thank you.
@Lex Loretta -> Noted

Second part of the question.

I now have to file IT returns for FY2023 (AY2024-25) before the deadline of 31July2024 but there are the following problems.

1. The ex-employer is showing an Income by creating a false employment date of 1 day in FY2023 (as seen in AIS Part B) although I was terminated in FY2020 itself.
2. But this income should actually have been shown for FY2020 (AY2021-22).
3. Most importantly I have not received this money at all.
4. To avoid paying me they have created a false deduction of "Notice Period Recovery" - And this in turn makes it appear that there is dues pending from my end.

So now how do I handle while filing IT returns?

Even if I contact the Ex-employer it is unlikely to get resolved before the IT deadline of 31July2024, so contacting ex-employer is not an option.

From India, Bengaluru
Lex Loretta
If you have reason to believe that your ex-employer is showing an income by creating a false employment date as of 1st April, '23, your employers can be held guilty of underreporting of income under S. 270(A)(8) & (9) Income Tax Act. To keep yourself legally safe, you should file a revised return u/139(5) IT Act.
From India, New Delhi
Madhu.T.K
4246

If the amount is not paid to you, rather you have not received it, you need not include it in the income. If a scrutiny comes it will be the responsibility of the employer to establish that they have paid it. Moreover, the amount is not earned but it is only an imputed amount. Therefore, you may proceed with normal filing as if you have not received an income from this particular employer last financial year. You have sufficient ground to say that the money was not paid to you.
From India, Kannur
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