Misappropriation case by company after leaving job with no dues

[Anonymous]

An employee resigns from a company and is formally relieved by the company and is also given the NO DUES certificate. This shows that the employee did not owe any amount to the company. Now, after that can the company threaten the employee with a misappropriation case? Can it register FIR against the employee after first having issued no dues certificate and relieving him from duty and clearing all dues?

[Dr. Ashok Dhamija]

It depends on the facts and circumstances of each case. If the company subsequently discovers misappropriation of its funds, which shows criminality in the acts committed, it may file an FIR with the police against the past employee. There is no legal bar on this. Issuance of a no-dues certificate may not come in the way of a criminal case if there is evidence to support the same and if such offence is discovered subsequently.

     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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