Letter of Legal Action for not Paying Salary after Resignation

Letter of Legal Action for not Paying Salary

Letters Kate

There are usually two ways to leave an organization: either to give a month’s notice or to resign immediately. Professionally speaking, providing a month’s notice is preferred and is considered a sign of due consideration. It enables the organization to identify a suitable replacement for the departing employee. This notice period also allows the employee to complete any ongoing projects that are difficult to transfer to another employee in such a short time.

However, if for some reason you need to give immediate resignation, you may do so. The terms of resignation or termination are mentioned in the contracts. Generally, an employee must forfeit their month’s pay if they resign immediately.

When an employee gives due notice to their employer, the employer is liable to settle the employee’s outstanding dues upon the employee’s departure from the organization. There may be several reasons why a company may back out of such an obligation.

An employee leaving the organization must obtain a clearance certificate, return all items and equipment owned by the organization, hand over all internal files and documents, and settle all outstanding dues. If any of these is not done, the employer may withhold the final pay cheque.

Sometimes, even when an employee has completed all formalities of leaving an organization, the employer may, for the wrong reasons, withhold the final pay cheque. If this happens, the employer is at fault and must be liable to pay.

The employee can first communicate their grievances to the employer. If the matter is not resolved, they can take legal action by hiring a lawyer and serving notice on the employer. Such cases mostly arise in smaller organizations that believe they can save money or avoid paying dues.

Suing a company for non-payment of salary is the legal right of the employee who has left the organization, given the ex-employee has not been in breach of contract him/herself.

Sample letters

#1

This is a formal notification regarding the non-payment of my salary for April and May despite repeated verbal and written requests. I would be compelled to take legal action if my dues are not cleared by the end of this month.

As per our employment agreement, the company must release my salary by the 5th of each month. However, it has been 70 days since I was not paid my salary, which I have not received for two months. I have fulfilled all my professional responsibilities during this period. Moreover, no official reason has been communicated to me for withholding my salary.

Please be notified that legal proceedings will be initiated if my due salaries are not released by the 30th of this month. I hope to resolve the matter promptly and amicably.

I look forward to your prompt attention to the matter.

#2

I am writing on behalf of the XYZ team regarding the non-payment of our due salaries for the previous 3 months. We want to notify you that if we don’t receive our pending wages within the next five days, we will contact the Labor Department and file an official complaint against the company.

Our team has been performing all professional duties and responsibilities with complete dedication and commitment. There is no valid reason for the delay in payment. We are, therefore, compelled to resort to legal action.

Please treat this matter with urgency. We prefer an amicable settlement instead of escalation to legal proceedings.

#3

We are writing on behalf of our client, XYZ, who your company formerly employed in the position of (job title). Your company has delayed XYZ’s salary for March after his resignation. This violates your company’s policy and also goes against labor rights.

We hereby demand immediate payment of our client’s due salary within 10 days of this notice. Failure to comply will necessitate our initiation of legal proceedings. We would seek official court orders for recovery, along with legal costs and damages.

This letter serves as your final opportunity to settle the matter without litigation. Please don’t hesitate to contact us at the provided number to initiate a mutually agreeable settlement.

#4

Subject: Notice of legal action for breach of contract

Dear Ms. Elizabeth,

I am writing to discuss my case regarding the payment of the final pay cheque. I resigned from the position of [X] with one month’s notice on July 29, 20xx. My resignation was accepted unconditionally. As per the organization’s policies, I obtained a clearance certificate and returned all property of the organization.

However, when I went to claim my pay cheque, it was not ready, and I was asked to collect it at a later date. Since then, I have made several visits to the accounts department; however, I still haven’t received my cheque.

Having fulfilled all legal obligations and given adequate time, I have now decided to take legal action against your company for breach of contract. You shall receive a legal notice from my lawyer within this week.

I hoped it would not come to this, but the organization’s failure to fulfill the terms of the contract has left me with no choice but to take legal action.

Sincerely,

Samuel Davidson

Letter of Legal Action for not Paying Salary after Resignation

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