Can an Employer Withhold Your Experience Letter, Salary or Full & Final Settlement?

Can an Employer Withhold Your Experience Letter, Salary or Full & Final Settlement?

Introduction

You resign from your job.

Your last working day passes.

You return:

laptop;
ID card;
access card;
company equipment.

But HR says:

“Your full and final settlement will take 60–90 days.”

Another employee is told:

“You did not serve the complete notice period, so we will not release your salary.”

A third employee clears all dues but the company refuses to issue an experience letter because:

“You left on bad terms.”

Can an employer legally do this?

The answer depends on what exactly the employer is withholding.

Indian employment law distinguishes between:

wages already earned;
notice-period liability;
gratuity;
leave encashment;
bonus/incentives;
reimbursements;
provident fund;
experience/service certificates.

Importantly, India’s four Labour Codes came into force on 21 November 2025, substantially changing the legal framework governing wages and employment benefits. The Ministry of Labour and Employment confirms that the Code on Wages, Industrial Relations Code, Code on Social Security and Occupational Safety, Health and Working Conditions Code have been implemented from that date.

One of the most significant rules for departing employees is now found in Section 17 of the Code on Wages, 2019.

Where an employee:

resigns;
is removed or dismissed;
is retrenched;
becomes unemployed because the establishment closes,

the wages payable must ordinarily be paid within two working days.

That does not necessarily mean every component of a company’s internal “full and final settlement” must be completed within two days.

But it does mean an employer should no longer casually equate:

“Our F&F process takes 90 days”

with:

“We can hold earned wages for 90 days.”

Those are not the same proposition.

The Short Answer

Can an employer withhold your earned salary after resignation?

Ordinarily, not indefinitely.

Under Section 17(2) of the Code on Wages, wages payable on:

resignation;
dismissal;
removal;
retrenchment;
closure

must ordinarily be paid within two working days.

Can the employer make deductions?

Only deductions authorised by law can be made from “wages” under the Code.

Section 18 says deductions may be made only for specified purposes and ordinarily cannot exceed 50% of wages in a wage period.

Does the two-day rule mean every F&F item must be paid in two days?

No.

“Full and final settlement” is an HR/accounting expression that can include amounts governed by different legal rules.

For example:

wages: ordinarily two working days on resignation;
leave encashment for covered workers: separate statutory rule;
gratuity: ordinarily within 30 days of becoming payable;
incentives/bonus: may depend on applicable statute, scheme or contract;
reimbursements: may depend on documentation and policy.

Can an employer withhold an experience letter?

There is no single nationwide rule requiring every employer to issue a document specifically called an “experience letter” to every category of employee.

However, statutory rights to a service certificate/experience certificate exist for certain workers.

For example:

workers covered by applicable standing orders may be entitled to a service certificate;
contract labour can demand an experience certificate under Section 56 of the Occupational Safety, Health and Working Conditions Code, 2020.

So the answer depends on:

employee category;
establishment;
applicable standing orders;
contract;
company policy;
State law.

The Major Change Since November 2025

For years, employees commonly heard:

“Salary will be settled in the normal payroll cycle.”

That position needs to be reconsidered under the Code on Wages.

The four Labour Codes became effective from 21 November 2025.

Section 17 of the Code on Wages now prescribes payment timelines.

For monthly wages, payment must ordinarily be made before expiry of the seventh day of the following month.

But where employment ends through:

resignation;
dismissal;
retrenchment;
removal;
closure,

Section 17(2) ordinarily requires payment within:

two working days.

Example: Employee Resigns on Friday

Last working day:

Friday

Earned salary remains due.

Subject to holidays and the statutory meaning of working days, the employer should ordinarily comply with the two-working-day requirement rather than simply saying:

“You will receive salary with next month’s payroll.”

Does the Rule Cover All Employees?

The Code on Wages deliberately uses the term:

employee

and has much broader wage coverage than some older labour statutes that were limited by wage ceilings or “workman” classifications.

Therefore, the wage-payment rule is significantly wider than the traditional industrial-disputes framework.

However, whether a particular amount forms part of statutory “wages” still depends on the Code’s definition.

Not every amount shown in a CTC sheet is necessarily “wages” for every legal purpose.

Salary vs Full & Final Settlement

This distinction is extremely important.

Suppose an employee’s F&F statement contains:

₹42,000 final-month salary;
₹20,000 leave encashment;
₹80,000 gratuity;
₹6,000 travel reimbursement;
₹15,000 performance incentive.

The employer cannot simply treat these five items as though they are governed by one universal payment deadline.

Each component needs separate legal analysis.

What Is Usually Included in Full & Final Settlement?

Depending on employment terms, an F&F may include:

unpaid salary;
salary for days worked;
notice pay;
leave encashment;
gratuity;
statutory bonus;
variable pay;
incentives;
expense reimbursements;
deductions;
recoveries.

The phrase “full and final settlement” itself does not override statutory payment timelines.

Earned Salary Cannot Be Used as General Leverage

Suppose an employee resigns after working the complete month.

HR says:

“We will release your salary only after the manager approves your exit.”

That is difficult to justify where wages have become legally payable.

Internal clearance procedures should not ordinarily be used to defeat statutory payment obligations.

What If the Employee Has Not Returned the Laptop?

This is more nuanced.

If company property remains unreturned, the employer may have:

contractual rights;
a claim for actual loss.

But deductions from statutory wages are regulated.

Section 18 of the Code on Wages allows deductions for damage or loss of goods expressly entrusted to the employee where the loss is directly attributable to the employee’s neglect or default.

The employer should therefore distinguish:

genuine quantified loss

from:

withholding the entire salary indefinitely.

Example: Laptop Worth ₹50,000

Employee fails to return a company laptop.

Outstanding wages:

₹1 lakh

The employer should not automatically assume:

“Therefore nothing is payable.”

Any deduction must comply with the statutory framework.

The company should identify:

property;
actual loss;
basis of liability;
lawful deduction.

Deductions From Wages Are Restricted

Section 18 expressly states that there shall be no deduction from wages except those authorised under the Code.

Permitted categories include matters such as:

absence from duty;
authorised fines;
direct loss/damage attributable to employee default;
authorised accommodation/services;
recovery of advances;
certain loans;
income tax/statutory levies;
court-ordered deductions;
provident-fund/social-security contributions.

This is important in F&F disputes.

An employer should not invent arbitrary deductions merely because employment has ended.

50% Limit on Deductions

Section 18(3) states that total deductions made from wages in a wage period ordinarily cannot exceed:

50% of the wages.

Where authorised deductions exceed that amount, the excess must be dealt with in the manner permitted by the applicable rules.

This prevents the routine practice of converting an entire final salary into:

“company recovery.”

What About Notice-Period Recovery?

This is one of the most common disputes.

Suppose the appointment letter says:

“Employee must give 60 days’ notice or salary in lieu thereof.”

The employee resigns immediately.

Can the employer recover notice pay?

Potentially, the employer may have a contractual claim depending on:

wording of the employment contract;
applicability of labour/State law;
whether notice was waived;
whether the employer accepted early release.

But an employer should not automatically assume that every contractual notice-pay claim can simply be deducted without regard to the Code on Wages’ restrictions on permissible wage deductions.

The legal question can be different from:

“Does the employer have a contractual claim?”

and:

“Can it deduct that claim directly from statutory wages?”

These are not necessarily identical.

Notice Buyout

Many employment agreements allow:

employee to pay salary in lieu of notice;
employer to waive part of notice;
earned leave to be adjusted.

Where both sides agree in writing, the exit process is much simpler.

If HR says:

“You are released early and no further notice is required,”

the employer may have difficulty later claiming the very notice period it expressly waived.

What If the Employer Forces Early Release?

Suppose the employee gives 60 days’ notice.

The employer says:

“Tomorrow will be your last day.”

The employer cannot automatically treat the remaining 59 days as:

employee shortfall.

The circumstances of the early release matter.

Can an Employer Withhold Salary Because You Did Not Complete Handover?

The employer may require reasonable:

handover;
asset return;
account reconciliation.

But salary already earned remains subject to statutory wage rules.

If the employer has an actual monetary claim, it should identify and quantify it.

“Manager has not signed the handover sheet” is not itself a permanent legal basis for confiscating wages.

Can Employer Deduct Training Costs?

Possibly, depending on:

validity of the training agreement;
actual training expenditure;
reasonableness;
applicable contract law.

An exaggerated clause such as:

“Leave within two years and pay ₹10 lakh”

does not automatically become enforceable merely because the employee signed it.

Courts can examine whether the amount represents:

genuine loss;
reasonable compensation;
penalty.

This is separate from whether that amount may lawfully be deducted directly from wages.

Can the Employer Withhold Salary for Poor Performance?

Ordinarily, salary already earned cannot simply be confiscated because the employer believes:

“Your performance was poor.”

Performance can affect:

appraisal;
incentive;
promotion;
continued employment.

But earned statutory wages cannot simply be turned into a disciplinary penalty outside the lawful deduction framework.

What About Variable Pay?

Variable pay requires separate examination.

Suppose a bonus policy says:

“Employee must remain employed on the payment date.”

Whether a resigned employee is entitled may depend on:

contractual wording;
whether the amount is discretionary;
whether targets were already achieved;
statutory bonus rules.

Variable incentive is therefore not always treated identically to earned monthly wages.

Statutory Bonus vs Performance Bonus

These are different.

Statutory bonus

Governed by statutory eligibility conditions under wage law.

Contractual performance incentive

May depend on:

policy;
targets;
employment status.

Do not assume every item labelled “bonus” has the same legal treatment.

Leave Encashment After Leaving Employment

The Occupational Safety, Health and Working Conditions Code, 2020 became enforceable on 21 November 2025. India Code confirms that enforcement date.

Section 32 contains an important rule for covered workers.

Where a worker:

is discharged;
dismissed;
quits employment;

they are entitled to wages in lieu of qualifying leave standing to their credit, and the payment is to be made before expiry of the second working day following separation.

The Ministry of Labour’s 2026 FAQ similarly confirms that a worker is entitled to encash leave standing to their credit on separation from service.

Important: Leave Encashment Rule Uses “Worker”

This matters.

The statutory annual-leave provisions of the OSH Code apply to workers covered by the Code’s definition.

That is not necessarily identical to every senior:

manager;
administrator;
executive.

For employees outside that definition, leave encashment may depend more heavily on:

employment contract;
company leave policy;
applicable State Shops and Establishments law.

So avoid saying:

“Every employee in India must receive all unused leave within two days.”

That is too broad.

Gratuity Is Different

Gratuity is governed by the Code on Social Security, 2020.

Section 56 requires the employer to determine the gratuity payable and arrange payment within:

30 days from the date it becomes payable.

If gratuity is not paid within that period, the Code provides for simple interest from the date it became payable until actual payment, except in the limited statutory circumstance where delay is attributable to the employee and written permission has been obtained from the competent authority.

Employer Cannot Wait for Employee to Apply for Gratuity

Another important protection is contained in Section 56(2).

The employer must determine the amount whether or not the employee submits an application.

So an employer should not simply say:

“You did not submit the gratuity form, so we owe you nothing.”

When Is Gratuity Payable?

The Code on Social Security retains the general five-year continuous-service framework for ordinary cases such as superannuation/resignation, subject to statutory exceptions.

The Code also provides special treatment for:

death;
disablement;
fixed-term employees.

The Ministry of Labour clarified in 2026 that a direct fixed-term employee becomes eligible for gratuity after completing one year under the fixed-term contract.

Can Gratuity Be Withheld Because Company Property Is Missing?

Gratuity has special statutory protection.

Forfeiture is not a general debt-recovery mechanism.

The Code permits forfeiture in specified situations, including to the extent of damage/loss where services were terminated for conduct causing loss, and in certain cases involving:

riotous/disorderly conduct;
violence;
an offence involving moral turpitude committed in the course of employment.

An employer should not casually withhold the entire gratuity because:

“Your exit clearance is incomplete.”

Experience Letter vs Relieving Letter vs Service Certificate

These terms are often used interchangeably, but legally they can mean different things.

Experience letter

Usually states:

employee’s role;
employment duration;
sometimes performance/responsibilities.

Relieving letter

Typically confirms that:

resignation was accepted;
employee was relieved on a stated date.

Service certificate

A statutory or standing-order document confirming employment particulars in categories where law requires it.

A person may have a legal right to a service certificate even though no general statute requires an elaborate HR-style recommendation letter.

Is Every Employee Legally Entitled to an Experience Letter?

Not under one universal central rule.

There is no general national provision saying:

“Every private-sector employee must receive a detailed experience letter praising their work.”

But certain categories have stronger statutory rights.

Workers Covered by Standing Orders

Historically, Model Standing Orders gave workmen a right to a service certificate stating:

designation/nature of work;
period of employment

at:

discharge;
termination;
retirement;
resignation.

Under the Industrial Relations Code, the standing-orders chapter now applies to industrial establishments employing 300 or more workers, subject to the Code and applicable standing orders.

The 2026 Central Rules recognise new Model Standing Orders under the Industrial Relations Code framework.

Therefore, covered workers should inspect the establishment’s:

Model Standing Orders;
certified Standing Orders.

Contract Workers Have an Express Experience-Certificate Right

Section 56 of the Occupational Safety, Health and Working Conditions Code provides that the contractor shall issue, on demand, an experience certificate to contract labour containing prescribed work details.

The Ministry of Labour’s 2026 FAQ expressly confirms that this is mandatory.

The Central Rules prescribe Form XIV, recording:

employment period;
work performed;
experience gained.

This is much stronger than a mere HR custom.

Can an Employer Withhold the Experience Letter Because You Did Not Serve Notice?

That depends on whether:

a statutory service-certificate right applies;
or the document is purely contractual.

Where law gives a worker a right to a service certificate, the employer should not ordinarily convert that statutory document into leverage for an unrelated monetary dispute.

The employer can separately pursue lawful notice-pay recovery.

For a senior managerial employee whose “experience letter” arises only from company policy or contract, the analysis can differ.

Can an Employer Put Negative Remarks in an Experience Letter?

A service certificate ordinarily serves to state objective employment particulars such as:

position;
period of work.

Employers should be cautious about using such documents to punish former employees through:

unnecessary accusations;
defamatory statements.

Disciplinary findings and background-verification responses raise separate legal questions.

Can an Employer Refuse a Relieving Letter?

A relieving letter is less clearly protected by a single universal central statutory rule.

Entitlement may come from:

company policy;
employment agreement;
standing orders;
industry practice.

However, where an employer has:

accepted resignation;
permitted exit;
received assets back,

arbitrary refusal can still create a contractual/service dispute and may have serious employment consequences.

Absconding Cases

Suppose the employee simply stops attending work.

The employer may record the facts according to:

standing orders;
disciplinary process;
contract.

The employee’s claim to a conventional “relieving letter” may therefore be different from that of someone who completed a normal exit.

But earned statutory dues do not automatically disappear merely because the company categorises the employee as absconding.

“No Dues” Does Not Mean “No Salary”

Employers often use exit clearance from:

IT;
finance;
administration;
manager.

That is sensible operationally.

But the phrase:

“No-dues clearance incomplete”

cannot automatically override statutory wage obligations.

The employer should identify any actual recoverable amount instead of holding all dues indefinitely.

Can an Employer Hold Salary Until You Sign the F&F Statement?

An employee should be cautious if asked to sign:

“I have no claims whatsoever against the company”

before receiving amounts already legally due.

Section 60 of the Code on Wages provides that an agreement through which an employee relinquishes a statutory amount due under the Code is void to the extent it removes or reduces the liability to pay that amount.

So a broad “full and final waiver” does not automatically erase statutory wage rights.

Employer Bears the Burden of Proving Payment

Section 59 of the Code on Wages contains another powerful protection.

Where a claim alleges:

non-payment;
short payment;
unauthorised deductions,

the burden of proving that the dues were paid lies on the employer.

This makes records such as:

salary slips;
bank statements;
F&F sheets

very important.

What Can an Employee Do if Salary Is Withheld?

First make a written demand.

Ask HR/payroll to provide:

Final salary calculation.
Amount legally classified as wages.
Each deduction.
Statutory/contractual basis for deduction.
F&F statement.
Expected payment date.

Specifically refer, where applicable, to the two-working-day rule in Section 17(2) of the Code on Wages.

Wage Claim Under Section 45

The Code on Wages creates a statutory claim mechanism.

Under Section 45, the authority can hear claims relating to:

non-payment;
less payment;
unauthorised deductions.

It can order the amount due and, depending on the circumstances, compensation that may extend to ten times the claim determined.

This does not mean every delayed ₹50,000 salary automatically produces ₹5 lakh compensation.

The authority has discretion based on the circumstances.

Three-Year Limitation for Wage Claims

A Section 45 claim may ordinarily be filed within:

three years from the date the claim arises.

The authority can entertain a delayed claim where sufficient cause is shown.

Employees should nevertheless act promptly.

SAMADHAN Portal

The Ministry of Labour operates the SAMADHAN portal for employment-related grievances.

The portal expressly covers matters such as:

delayed payment;
unauthorised deductions;
gratuity;
bonus;
other legal employment dues.

The Ministry’s older portal now also directs users filing fresh Labour Code cases to the newer SAMADHAN system.

The correct jurisdiction can depend on whether the:

Central Government;
State Government

is the appropriate government for the establishment.

Can Everyone Use the Same Labour-Court Remedy?

Not necessarily.

This is an important distinction.

Some statutes use:

employee

while industrial-dispute remedies may depend on whether the person falls within the statutory definition of:

worker.

A senior managerial employee may have wage rights under one framework but may not qualify for every industrial-dispute remedy available to a worker.

Such employees may need to rely on:

contractual remedies;
appropriate statutory wage authority;
civil proceedings.

Gratuity Complaint

Where gratuity is unpaid or disputed, Section 56 provides a specialised procedure before the competent authority.

If the employer disputes the amount, it must deposit the amount it admits is payable while the competent authority decides the dispute.

PF Is Not an Employer’s F&F Asset

Provident fund is governed by its own statutory framework.

An employer does not ordinarily have discretion to:

“confiscate your PF because you resigned without notice.”

PF-related claims should be checked through:

EPFO;
UAN records.

The employment-exit dispute and PF entitlement should not be conflated.

Can Employer Delay EPF Exit Updating?

An employer should complete required statutory exit compliance.

Where incorrect or missing exit data prevents PF processing, employees can use EPFO’s correction/grievance mechanisms.

This is different from the employer directly “paying” the PF balance through F&F.

Practical Example 1: Salary Held for 60 Days

Employee resigns normally.

Last working day:

1 October 2026

Earned September/October wages remain outstanding.

HR says:

“Company policy is 60 days.”

Section 17(2)’s two-working-day statutory wage requirement cannot simply be displaced by a slower internal HR policy.

Practical Example 2: Gratuity Takes 45 Days

Eligible employee leaves service.

Company pays gratuity after 45 days without a statutory justification.

Section 56 requires gratuity to be arranged within 30 days, and delayed payment can attract statutory interest.

Practical Example 3: Manager Refuses Handover Approval

All company property has been returned.

Manager refuses to click “approve” because of a personal dispute.

Earned wages cannot ordinarily be held indefinitely merely because an internal workflow has stalled.

Practical Example 4: Employee Keeps Laptop

Employee does not return company property.

The employer may have a legitimate claim for actual loss.

But wage deductions must still comply with Section 18, including its authorised grounds and limits.

Practical Example 5: Contract Worker Requests Experience Certificate

A contract labour employee leaves and asks the contractor for proof of experience.

The contractor says:

“We do not issue experience letters.”

Section 56 of the OSH Code expressly requires an experience certificate on demand for contract labour.

Practical Example 6: Employee Resigns Without Notice

Appointment letter requires 60 days’ notice.

Employee leaves immediately.

Employer may have a contractual notice-pay claim.

But it should separately analyse:

enforceability of that claim;
lawful wage deductions;

rather than automatically treating all earned wages and statutory dues as forfeited.

Practical Example 7: Performance Bonus

Employee resigns in March.

Annual incentive policy says employees must remain on payroll on 30 April.

Whether the incentive is payable depends on:

policy wording;
statutory nature of payment;
whether entitlement had already crystallised.

This cannot automatically be answered by the two-day wage rule.

Practical Example 8: Leave Balance

A covered worker quits with statutory annual leave standing to their credit.

Section 32 of the OSH Code provides for wages in lieu of that leave, with a two-working-day timeline for discharge, dismissal or quitting.

Common Myths

Myth 1: “Every F&F settlement legally has to be completed within two days.”

Too broad.

Section 17 requires wages payable on separation to be paid within two working days.

Other F&F components can have different timelines.

Myth 2: “Companies can hold salary for 90 days because that is their HR policy.”

Incorrect for statutory wages.

A company policy cannot override inconsistent rights under the Code on Wages.

Myth 3: “If you do not serve notice, the employer can confiscate everything.”

Incorrect.

The employer may have a contractual claim, but statutory wages and benefits remain governed by their respective laws.

Myth 4: “All deductions mentioned in the appointment letter are automatically valid.”

Incorrect.

Deductions from statutory wages must comply with Section 18 of the Code on Wages.

Myth 5: “The employer can withhold gratuity until the exit clearance is complete.”

Not as a general rule.

Gratuity has its own statutory payment and forfeiture rules.

Myth 6: “Gratuity can take 90 days.”

Not ordinarily.

Section 56 specifies payment within 30 days after it becomes payable.

Myth 7: “Every employee has a statutory right to a detailed experience letter.”

Too broad.

Specific service/experience-certificate rights exist for certain categories, while others may depend on standing orders, State law or contract.

Myth 8: “Contract labour has no right to an experience certificate.”

Incorrect.

Section 56 of the OSH Code expressly provides a right to an experience certificate on demand.

Myth 9: “Signing an F&F waiver removes all wage rights.”

Incorrect.

The Code on Wages invalidates contractual relinquishment of statutory amounts to the extent it reduces the employer’s liability.

Exit Checklist for Employees

Before your last working day, preserve:

Appointment letter.
Salary slips.
Resignation email.
Resignation acceptance.
Confirmed last working day.
Notice-waiver/buyout email.
Handover acknowledgement.
Laptop/asset return receipt.
Leave balance.
Incentive policy.
Gratuity eligibility details.
Expense claims.
PF/UAN details.

After exit, request an itemised F&F statement rather than merely asking:

“When will I get my money?”

What Should the F&F Statement Show?

Ideally:

Credits

salary payable;
leave encashment;
incentive/bonus;
gratuity;
reimbursement.

Deductions

tax;
authorised advances;
lawful asset loss;
other lawful deduction.

Each deduction should have an identifiable basis.

Employee Demand Checklist

If payment is delayed, ask in writing:

Please confirm which amount constitutes wages under the Code on Wages, 2019 and the statutory basis for any deduction or delay.

Also request:

exact amount;
payment date;
deduction calculation.

A written record becomes important if statutory proceedings are later necessary.

Employer Checklist

Before holding an employee’s exit payment, HR should ask:

Is the amount statutory wages?
Does Section 17’s two-working-day deadline apply?
Is the proposed deduction authorised by Section 18?
Does the 50% deduction limit apply?
Is leave encashment statutorily payable?
Is gratuity due?
Has 30 days elapsed for gratuity?
Is a service/experience certificate legally required?
Are we separating genuine company recovery from statutory dues?

The safest rule is:

pay undisputed statutory amounts and pursue disputed contractual recoveries through lawful means.

Frequently Asked Questions

How long can an employer take to pay final salary after resignation?

Under Section 17(2) of the Code on Wages, wages payable following resignation are ordinarily required to be paid within two working days.

Does this apply in 2026?

Yes. The Labour Codes were implemented from 21 November 2025.

Can my company say F&F takes 45 or 60 days?

It may take time to calculate some non-wage items.

But an internal F&F cycle does not automatically postpone the statutory deadline for wages.

Can an employer deduct my entire final salary for notice period?

Do not assume so.

Notice-pay liability depends on contract and applicable law, while wage deductions are separately restricted by Section 18.

What is the maximum deduction from wages?

Section 18 ordinarily limits total deductions in a wage period to 50% of wages.

Can the employer keep my salary because I have not returned company property?

It may have a lawful claim for proven loss, but statutory deductions must comply with Section 18.

When must gratuity be paid?

Ordinarily within 30 days from the date it becomes payable.

Is interest payable for delayed gratuity?

Yes, subject to the statutory exception concerning delay attributable to the employee and competent-authority permission.

Is unused leave payable on resignation?

For workers covered by Section 32 of the OSH Code, qualifying leave standing to their credit is payable on separation, with the statutory two-working-day rule for quitting/discharge/dismissal.

For managerial/non-worker categories, applicable contract and State law must also be checked.

Must every employer give an experience letter?

There is no universal right to a detailed experience letter for every employee.

However, statutory service/experience-certificate rights apply to certain categories, including contract labour under Section 56 of the OSH Code.

Can contract labour demand an experience certificate?

Yes. The contractor must issue it on demand, and the Central Rules prescribe Form XIV.

Where can I complain about unpaid salary?

The Code on Wages provides a statutory claims mechanism, and the Ministry of Labour’s SAMADHAN system handles complaints including:

delayed payment;
unauthorised deductions;
gratuity;
bonus;
employment dues.

The Most Important Distinction: Salary vs Full & Final Settlement

This is where many HR disputes begin.

An employer may say:

“F&F takes 60 days.”

But that phrase can conceal several separate payments.

The correct question is:

Which component are you talking about?

If it is earned wages, Section 17’s two-working-day requirement becomes central.

If it is gratuity, the 30-day rule applies.

If it is an incentive, the governing policy may matter.

One HR timeline cannot automatically replace all of those rules.

The Second Important Distinction: Employer’s Claim vs Employer’s Deduction

An employer may genuinely believe:

“The employee owes us ₹1 lakh.”

That does not automatically answer:

“Can we take ₹1 lakh directly from statutory wages?”

The Code on Wages separately regulates lawful deductions.

So employers need to distinguish between:

having a legal claim;
exercising a lawful wage deduction.

The Third Important Distinction: Experience Letter vs Service Certificate

Employees often use these terms interchangeably.

But the legal right may only extend to a factual service certificate confirming:

designation;
employment period.

An employee may not have a statutory right to demand:

“excellent performer with outstanding leadership skills.”

But where law requires a certificate of service, the employer should not use that factual employment record as bargaining leverage.

The Fourth Important Distinction: Worker vs Employee

The new Labour Codes do not use one identical category for every right.

The Code on Wages uses the broader concept of an:

employee

for wage protections.

But provisions such as statutory leave encashment under Section 32 of the OSH Code concern:

workers.

Industrial-relations remedies and standing-order protections may also depend on the worker classification.

This distinction is especially important for:

managers;
senior executives;
supervisory employees.

Conclusion

Can an employer withhold your experience letter, salary or full and final settlement after you resign?

Not simply because the employer controls the exit process.

The legal position in India changed significantly after implementation of the four Labour Codes from 21 November 2025.

The most important new rule appears in Section 17(2) of the Code on Wages, 2019.

Where an employee:

resigns;
is dismissed or removed;
is retrenched;
loses employment because of closure,

their payable wages must ordinarily be paid within two working days.

That makes the common statement:

“Our company policy says F&F takes 60–90 days”

legally incomplete.

An employer may need additional time for certain non-wage components, but it cannot automatically postpone earned statutory wages merely because its internal F&F workflow operates more slowly.

Deductions are also restricted.

Section 18 says wages can only be deducted for authorised purposes and ordinarily caps total deductions in a wage period at 50%.

So:

unreturned assets;
advances;
proven losses

may create legitimate issues, but they do not give the employer unlimited authority to confiscate every rupee payable.

Other exit benefits have their own rules.

For covered workers, Section 32 of the Occupational Safety, Health and Working Conditions Code, 2020 requires payment for qualifying unused leave on separation and specifies a two-working-day timeline in cases of discharge, dismissal or quitting.

Gratuity follows a different schedule.

Under Section 56 of the Code on Social Security, 2020, gratuity must ordinarily be paid within 30 days of becoming payable, with statutory interest potentially accruing for unjustified delay.

Experience documents also require careful classification.

There is no single nationwide rule giving every employee a right to an elaborate “experience letter.”

But statutory service/experience certificate rights apply in important categories. In particular, Section 56 of the OSH Code requires contractors to provide contract labour with an experience certificate on demand.

Where wages are unlawfully withheld, the Code on Wages provides a claims mechanism under Section 45. A claim can ordinarily be made within three years, and the authority can award the amount due together with compensation in appropriate cases.

The Ministry of Labour’s SAMADHAN framework also accepts grievances involving:

delayed wages;
unauthorised deductions;
gratuity;
bonus;
other legal employment dues.

For employees, the practical principle is:

Your resignation does not erase wages you have already earned.

And for employers:

A genuine claim against an employee should be calculated and recovered lawfully—not converted into indefinite withholding of salary and statutory benefits.

This article reflects the Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020, Occupational Safety, Health and Working Conditions Code, 2020, the Central Rules and Ministry of Labour clarifications publicly available up to October 2026. Employment rights can differ according to employee/worker classification, establishment type, State law, certified standing orders and the employment contract. “Full and final settlement” is not a single statutory payment category, and different components may have different legal deadlines. This article is intended for general legal information and academic discussion and does not constitute legal advice.

Primary SEO keyword: Full and Final Settlement Rules India

Secondary SEO keywords: employer withholding salary after resignation India, full and final settlement 2 days India, Code on Wages final settlement, experience letter employer India, employer refusing relieving letter, notice period salary deduction India, salary after resignation India 2026, leave encashment on resignation India, gratuity payment 30 days, employer holding F&F India, Section 17 Code on Wages, employee final salary rights India.