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Is it legal to take a security cheque from employees and withhold EOSB?

Hi Sir/Madam,

While I joined our company, they got a security cheque (Blank dated) from me. When the staff leave their job, the company gives less amount for settlement.

If we ask for the correct settlement, they threaten us "if you ask more, will we deposit the cheque" like that. Suppose they deposit the cheque and bounced, what will happen?

I have only a cheque copy. I don’t have any other proof. Can you tell me how we can be relieved from this issue and get the full settlement?

Hussain Lootah & Associates
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14 Mar 2021, 04:28

Dear Questioner,

Thank you for contacting me over Legal Advice ME.

Taking security cheques from the employees and threatening them when they ask for the end of service benefits; such activities on the part of the employer are illegal.

You shall raise this as a complaint to the ministry of labour [if your company is a mainland company].

You shall inform the ministry regarding such illegal activities that your employer use as a weapon to withhold the end of service benefits.

Regards,

Rajasree Ravivarma

18 Mar 2021, 09:27

But I am afraid if they deposit the cheque. What will happen?

They took from me the security cheque (Blank dated) was their sister company. My VISA is a different name. But owners and sponsor are the same.

18 Mar 2021, 10:06

if they deposit and if the same get dishonoured you will have to handle the criminal liability.

However, you can raise this concern before the public prosecution once it reaches the prosecution.

18 Mar 2021, 10:53

Madam,

The cheque amount is 40,000. I heard that if the amount is below 20,0000, we can pay 2000 & clear it to remove the travel ban and from the criminal case.

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