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Labour Codes, in force 21 Nov 2025

Legal notice for unpaid full and final

Demand the exact amounts within 15 days. Print, sign and send by registered post.

Your exit

Workers get leave encashment in 2 working days and statutory retrenchment pay. Managers get these per their contract.

Your pay

Used for gratuity. Under the Labour Codes at least 50% of total pay counts as wages.

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More dues, payments and deductions

What they say you owe

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  1. 1
    Email to HRLists each amount and its due date.
  2. 2
    Reminder after 7 daysSame list, with how many days late it is now.
  3. 3
    Legal noticeDemands the exact amounts within 15 days. Print, sign, send by registered post.
  4. 4
    Complaint to the labour authorityPrivate company → State labour department. Banks, insurance, telecom, airlines, PSUs → SAMADHAN portal. Claim within 3 years.

LEGAL NOTICE

Without prejudice to my other rights and remedies

Date: 15-10-2026

By Registered Post A.D. / Speed Post

From:
[Your name]
[Your address]

To:
[Employer name]
[Employer address]

Subject: Legal notice for payment of full and final settlement dues

Sir/Madam,

  1. I was employed with you as [Designation] from 01-02-2019.
  2. I resigned from your employment, and my last working day was 31-08-2026.
  3. The following amounts are due to me on the end of my employment:
    (a) Salary, Aug 2026: ₹60,000.00, payable within two working days under Section 17(2) of the Code on Wages, 2019
    (b) Leave encashment, 12 days: ₹13,846.00, payable under the terms of my employment and your policies
    (c) Gratuity, 7 years 7 months → 8 years: ₹1,38,462.00, payable within thirty days under Section 56 of the Code on Social Security, 2020
    Total: ₹2,12,308.00.
  4. Despite my requests, you have not paid these amounts.
  5. Under Section 17(2) of the Code on Wages, 2019, the wages payable to an employee who has resigned, or has been removed, dismissed or retrenched, must be paid within two working days. Under Section 53 of the Code on Social Security, 2020, gratuity is payable on the end of employment after the qualifying service. Under Section 56(3) it must be paid within thirty days of becoming payable, failing which simple interest is payable under Section 56(4). The other amounts are payable under the terms of my employment and your policies.
  6. I therefore call upon you to pay me the balance of my full and final settlement dues of ₹2,12,308.00 (Two Lakh Twelve Thousand Three Hundred Eight Rupees Only) within 15 days from the date of this notice, that is, on or before 30-10-2026, by bank transfer / UPI / cheque to me, and to confirm in writing.
  7. I also request you to issue my relieving letter and experience letter, my Form 130 (Form 16 for years before 2026-27) for the period I worked, and to update my date of exit with the EPFO.
  8. If you fail to do so, I may initiate appropriate proceedings against you before the authority under Section 45 of the Code on Wages, 2019, the competent authority under Section 56 of the Code on Social Security, 2020, or any other appropriate forum, to recover the amount with interest, compensation and costs, entirely at your risk as to costs and consequences.
  9. A copy of this notice is retained by me for further action.

Yours faithfully,

[Your name]
Employee

Print, sign every page, keep a copy, and send by Registered Post A.D. or Speed Post. Email a scan too.

The free letters above stay free.

Calculator and template, not legal advice. Rules as of 12 Oct 2026. Your contract, State law and policy can change the numbers.

2 of 4 parts late₹2,12,308
Ask HR

When must full and final settlement be paid?

Not all at once. Since the Labour Codes came into force on 21 November 2025, wages (salary for days worked, and allowances) must be paid within two working days when you resign or are removed, dismissed or retrenched (Code on Wages, 2019, section 17(2)). The law says two working days "of" the resignation; we count from your last working day, the later date. Gratuity has its own deadline: 30 days from when it becomes payable (Code on Social Security, 2020, section 56(3)). Statutory bonus is due within 8 months of the end of the accounting year (Code on Wages s.39). Leave encashment is due in two working days for "workers" (OSH Code s.32); for managers it depends on your policy and State law.

How is it calculated?

Example: last day 31 August 2026, gross ₹60,000, basic + DA ₹30,000, joined 1 February 2019, 12 days' leave. Salary for August ₹60,000. Leave 12 × 30,000 ÷ 26 = ₹13,846 (₹12,000 if your company divides by 30). Gratuity for 7 years 7 months, counted as 8: 30,000 × 15 ÷ 26 × 8 = ₹1,38,462. Total ₹2,12,308.

Gratuity after 4 years 240 days?

The rule is 5 years of continuous service (1 year for fixed-term contracts, paid pro rata). Some High Courts have held that a person who worked 240 days in the fifth year qualifies. The Supreme Court has not settled it, so treat it as a claim, not a right.

Can they deduct notice pay?

Employers often recover a notice shortfall under the contract. The list of deductions the Code on Wages allows (s.18) does not mention it, and no court has settled the point under the Codes. A reasonable training bond can be valid (Supreme Court, Vijaya Bank v Prashant Narnaware, 2025). Notice pay is not a ground to withhold gratuity (CSS s.53(6)).

Is my data stored?

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