Full and Final Settlement Not Received After Resignation?

Not received your Full and Final Settlement after resignation? Learn your legal rights, complaint options, and how to recover unpaid dues under Indian labour law.

Are you struggling to get your Full and Final Settlement (F&F) after leaving your job in India? Whether you’ve resigned, been terminated, or completed your contract, employers are legally obligated to settle your dues. Yet, many companies delay or deny these payments without valid justification.

This blog will walk you through your legal rights, steps to take, and remedies available under Indian labour laws to recover your unpaid dues.

🔍 What is Full and Final Settlement?

Full and Final Settlement refers to the process by which an employer clears all pending dues of an employee after their employment ends. It typically includes:

• Unpaid salary

• Leave encashment

• Gratuity (if applicable under the Payment of Gratuity Act, 1972)

• Bonus and performance incentives

• Pending reimbursements

As per industry standards, this settlement should be processed within 30 to 45 days from the last working day.

Can a Company Legally Withhold Your Full and Final Settlement?

Under Indian employment laws, an employer cannot arbitrarily withhold or delay your F&F settlement. However, they may withhold a portion under specific, legally justifiable circumstances, such as:

1. Non-Return of Company Property

If you haven’t returned company assets like laptops, ID cards, or mobile devices, the employer can deduct the equivalent value from your dues.

✅ Tip: Always return company property and collect acknowledgment to avoid delays.

2. Violation of Employment Contract

If you’ve breached clauses like:

• Non-compete agreements

• Confidentiality obligations

• Misuse of intellectual property

…the company can withhold payments, but only if they have documented proof.

3. Incomplete Exit Formalities

Your employer may delay settlement if you haven’t:

• Submitted resignation formally

• Completed notice period

• Finished handover processes

They must communicate the reason in writing and cannot withhold dues indefinitely.

🛡️ Your Legal Rights for F&F Settlement in India

According to Indian labour laws:

• Employers must provide written justification for any delay in releasing dues.

• Unexplained delays are considered a violation of employment terms.

• You can legally challenge such actions via labour authorities or courts.

📝 Legal Steps If Full and Final Settlement Is Not Done

Here’s what you can do if your employer fails to release your F&F dues:

1. Send a Formal Legal Notice

Hire a lawyer to issue a formal notice demanding immediate settlement. This often compels the company to respond quickly.

2. File a Complaint with the Labour Commissioner

Under:

• Section 15 of the Payment of Wages Act, 1936

• Shops and Establishments Act of your state

You can lodge a complaint with the Labour Department. This is ideal for employees earning up to ₹24,000/month.

3. Approach Labour Court or Civil Court

• Workmen (as defined under the Industrial Disputes Act, 1947) can file a case in Labour Court.

• Senior professionals or non-workmen can file a civil suit for breach of contract and recovery of dues.

4. Escalate on Social Media

While not a legal remedy, public escalation via LinkedIn, Twitter, or Glassdoor can pressurize companies to act faster.

📢 Where to Complain If Full and Final Settlement Is Not Paid?

You can initiate complaints through these channels:

1. Email HR with a polite follow-up (sample below)

2. File a grievance with the Labour Commissioner or Shops and Establishments Inspector

3. Submit an online complaint on:

   • CPGRAMS (Central Govt portal)

   • Your State Labour Department’s website

4. Send a legal notice via a labour lawyer

5. File a case in Labour or Civil Court depending on your role and pay structure

✅ What To Do: Practical Checklist

Here’s a step-by-step checklist to follow if your dues are delayed:

• 📁 Keep All Documents: Offer letter, resignation email, final payslip, relieving letter, etc.

• 📧 Send Reminder Email to HR (Use the draft below)

• 📞 Follow up regularly through calls/emails

• 🧾 Send a legal notice if ignored

• ⚖️ Approach Labour Department or initiate court proceedings

Pro Tip: Always maintain written records of every communication.

📬 Sample Email: Full and Final Settlement Not Received

Subject: Request for Full and Final Settlement – [Your Name]

Dear [HR Manager’s Name],
I hope you are doing well.

I am writing to formally follow up on my Full and Final Settlement for my tenure at [Company Name], which ended on [Last Working Day – e.g., 10 April 2025].

As per company policy and common practice, the F&F dues are to be cleared within 30–45 days. However, it has been over [X] days, and I have yet to receive my settlement or any official update.

I request you to kindly process the settlement at the earliest or inform me of the expected timeline. Attached are my final payslip and relieving documents for your reference.

In the absence of a resolution, I may be compelled to explore legal options as provided under Indian labour laws.

Looking forward to your prompt response.
Best regards,
[Your Full Name]
[Employee ID]
[Contact Number]
[Personal Email ID]

Companies are legally and ethically required to pay full and final dues to exiting employees. If you’ve completed your obligations and the employer continues to delay or ignore your settlement, you have strong legal grounds to act.

👉 Start with internal escalation, and don’t hesitate to pursue legal remedies if needed.
Your rights are protected under Indian law—assert them with confidence.

📞 Have Questions?