Hi i am babu i have not got my settlement even though i resigned three months before (i have completed all the formalities before i left the organisation and they relieved me as well. But still my settlement not made may i know what is the time limit for an employer to make the settlement if i know this i can file a case against them......thanks
From India, Madras
From India, Madras
Hi,
There is no legal time limit. But three months after completing all the formalities is a good time to make a full and final settlement for any decent company. If you have completed all formalities especially related to dues and income tax declaration, then send them a formal written request by courier. If there is no repsonse for the same then do send a legal notice and proceed.
kind regards
Dayanand L Guddin
From Singapore, Singapore
29There is no legal time limit. But three months after completing all the formalities is a good time to make a full and final settlement for any decent company. If you have completed all formalities especially related to dues and income tax declaration, then send them a formal written request by courier. If there is no repsonse for the same then do send a legal notice and proceed.
kind regards
Dayanand L Guddin
From Singapore, Singapore
The time within which settlement of employee who leaves an establishment should be made shall be provided in the certified Standing Orders of the company. Since relieving is termination of service contract the provision in section 5 (2) of the Payment of Wages Act, 1936 shall also be interpreted as applicable. Accordingly, any amount due in the form of salary shall have to be paid within 2 days. In the case of gratuity the payment shall have to be made within 30 days failing which interest will have to be paid. However, there may be some other reasons for not settling the amount like the employee not getting NOC from various departments, not furnishing necessary proof in support of income tax saving investments on the basis of which only the employer can issue form 16 later on and so on. Therefore, before issuing a legal notice please write to the employer and put your grievances in black and white.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
For full & final settlement 3 months is sufficient & if u hav completed all formalities related to dues then u can email to ur HR department mentioning all details to make ur settlement soon.
From India, Delhi
From India, Delhi
I am agree with Madhu's reply
All payment due related to salary to be released within 2 days as per payment of wages act. About time for F & F every organisation has their own timeframe from same day (last date of leaving) to 90 days
From India, Mumbai
All payment due related to salary to be released within 2 days as per payment of wages act. About time for F & F every organisation has their own timeframe from same day (last date of leaving) to 90 days
From India, Mumbai
Dear All,
Kindly re - verify the applicability of the provisions of paments of wages act. There are sevral citations available about the non applicability of these in the judgements by many high courts. Hence it is advised to send a plain legal notice and then proceed.
Kind regards
Dayanand L Guddin
From Singapore, Singapore
Kindly re - verify the applicability of the provisions of paments of wages act. There are sevral citations available about the non applicability of these in the judgements by many high courts. Hence it is advised to send a plain legal notice and then proceed.
Kind regards
Dayanand L Guddin
From Singapore, Singapore
I agree to Mr. Madhu
If your employee is covered under workmen as per the definition in payment of wages Act, it is legal binding to settle accounts within 2 days (None of the company do it and not possible too)
and if not, and if your organisation is covered under Employees Standing Orders Act, you have to go by date mentioned in your organisation's employee standing order.
If your organisation is not covered under both (i.e. employee strength less than 50 and full and final settlement of person at managerial level or supervisory level) there is no time limit.
Ideally organisation settle its within 1 to 3 months
From India, Mumbai
If your employee is covered under workmen as per the definition in payment of wages Act, it is legal binding to settle accounts within 2 days (None of the company do it and not possible too)
and if not, and if your organisation is covered under Employees Standing Orders Act, you have to go by date mentioned in your organisation's employee standing order.
If your organisation is not covered under both (i.e. employee strength less than 50 and full and final settlement of person at managerial level or supervisory level) there is no time limit.
Ideally organisation settle its within 1 to 3 months
From India, Mumbai
Its depends on the organisation, for example some company will settle with in 45 days, some company will settle in 1 month
From India, Bangalore
From India, Bangalore
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Haryana-Extensi on Of Time Limit To Deposit Labour Welfare Fund In The State Of Haryana (1).pdf