Charges of solicitation and interference by the employer

Following are the impressions’.

You have posted that:

"The company informed 3 months in advance to all employees that they are closing operations and informed clients as well."

Is this information in writing? Has any separation compensation been offered?

 

These 3 months are notice months and employee is at liberty to firm up next venture to earn livelihood.

 

"Is there any RBI guideline which allows employers to put Lien on bank salary account?..............................The salary in account marked as lien by icici bank on the request of employer – reason given in “excess salary credited”

 

The Bank can mark a lien if the a/c opening T&C provide for it and Bank has dues against customer.

Have you received any notice from Bank and marking of lien in writing?

 

Object and agitate that the accusations’ are false, in writing and under proper acknowledgment to local BM,MD of M/s ICICI bank and MD of employer. Narrate the dues by company.

 

RBI; Customer Protection and Education Dept. deals with customer matters.

RBI; banking Regulations Dept. deals with violation of banking regulations.

 

Approach a very able counsel specializing in Labor/Service matters with all docs on record ASAP.

 

 

Company can't hold you liable for non paymeent by clinet.

Have u given appointment letter to bank in which your salary is indicated?

If yes bank can't keep lien or say it is excess amount given.

If want to proceed please let me know.

Mr Kumar Doab - I have backup of emails from employer confirming the 3 months notice. Seperation compensation was not offered as the employer helped almost everyone to receive an offer from some other company (sister companies or outside companies).

No communication from bank or employer on the lien.

Mr Bharat - which appointment letter you are talking about?

Querist @ Sudhir,

 

You query is being attended to by Individuals/Experts that have posted illustrated response on employment/labor/service matters in unlimited threads.

You are with right persons.

You have legal/employment related issues.

We are trying to support you.

We expect that when you address a registered Expert you shall do so by adding respectfully and do not resort to commanding language.

 

You could have addressed Adv. Bharat as Mr/Shri Bharat and avoided a authoritative/commanding phrase ‘Bharat - which appointment letter you are talking about?’.

 

Anticipating that you will mend the following response is being posted.

 

 

>>> You may go thru:

 

--The brochure/welcome kit containing T&C of your salary a/c.Some info is advertised by M/s ICICI bank at its website:

 

IV. ICICI Bank Salary & Employee Reimbursement Accounts

 

1.5 In the event the Employer instructs ICICI Bank to reverse any deposit made by the Employer in the Salary Account within three (3) working days from the date of such deposit, ICICI Bank shall act upon such instruction and the customer will not dispute or hold the bank responsible for any such debits in the customer's account. For this purpose the entity/organization from whom the last salary credit has been received shall be considered as the employer. ICICI Bank shall however not be liable in any manner whatsoever for having acted upon the aforesaid instruction of the Employer.

 

1.6 In the event the employment of the Customer with the Employer ceases, the Customer shall immediately notify ICICI Bank regarding such termination of employment.

 

Bank's Lien :

The Bank shall have the right of set-off and lien, irrespective of any other lien or charge, present as well as future on the deposits held in the Cardholder's Primary Account and/or, Secondary Account(s) or in any other account, whether in single name or joint name(s), to the extent of all outstanding dues, whatsoever, arising as a result of the ICICI Bank ATM card services extended to and / or used by the Cardholder.

 

25. Right of set-off and Lien : ICICI Bank shall have the right of set-off and lien, irrespective of any other lien or charge, present as well as future, on the deposits held in the Account(s) or in any other account, whether in single name or joint name(s), to the extent of all outstanding dues, whatsoever, arising as a result of the Internet Banking extended to and/ or used by the User.

 

https://www.icicibank.com/Personal-Banking/account-deposit/salary-account/terms-conditions.page

 

 

--You may relate with RBI guidelines:

 

RBI Master Circular on Customer Services:

https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=9008

 

-- You may find other threads relevant e.g;

https://www.lawyersclubindia.com/forum/Salary-account-freeze-without-my-notice-95425.asp

 

 

>>> You have posted that:

 

--“Told that salary and full and final settlement will be stopped for all.’

 

It is verbal or in writing?

 

Have you accepted in writing that you were told verbally/in writing?

 

--“Following two clauses in employment agreement:

1. Non-soliciting of employees – during the employment with company and for a period of 12 months from the expiry or cessation thereof for whatever reason, I shall not directly or indirectly solicit any employee to leave his/her employment with the company to join me or any third party.
2. No Interference – I shall not interfere with company’s relationship with its customer, employees, vendors, bankers, or others whether during my employment with company or after expiry or cessation thereof for whatever reason.”

 

You were issued with appointment letter or employment agreement?

 

--“Seperation compensation was not offered as the employer helped almost everyone to receive an offer from some other company (sister companies or outside companies).”

 

Your understanding on this matter is personal.

Here in this thread at LCI you are asking about legal view.

You should not have agreed on it/such help alone.

You should have negotiated a settlement.

So far it has not been ascertained that you will be covered by various enactments or not!

 

 

 

 

Dear Mr Kumar, I did not mean to offend you and I will keep this in mind to address people with prefix here. I apologise for this. Thanks for all your help.

--“Told that salary and full and final settlement will be stopped for all.’

This was in verbal and we did not receive any communication in writing.

The two clauses I mentioned are part of Employment Agreement.

 

Mr Bharat - I have not given the appointment letter containing salary.

Learned experts have already ably guided you. What i would like to add is that 1. Company cannot hold you accountable for breach of contract by client as you are not privy to the contract. 2. the clauses on basis of which company is threatening you are generally looked down upon by courts and are upheld only in rare cases as they are hit by section 27 of Indian Contract Act. So in my opinion, identify an able counsel, sit back and relax. if company sends a legal notice, your counsel will defend your interests.

You have posted that:

 

---"We get to know the outstanding due amounts to around USD 150K."

It is a huge amount.

 

---"This was in verbal and we did not receive any communication in writing."

They have acted on verbal information given to you.

The result is in front of you.

The unpaid amounts (including your wages) to you might also be quite sufficient amount.

 

However it may not be equal to loss claimed by employer!

 

 

 

---"The salary in account marked as lien by icici bank on the request of employer – reason given in “excess salary credited”"

Is it communicated to you in writing? 

If yes by whom?

If NO; Obtain in writing  from both M/s ICICI Bank and employer! If employer is unwilling obtain from M/s ICICI Bank alongwith authenticated copy of employer's communication.If M/s ICICI Bank is also unwilling and/or does not comply with your legitimate instructions lodge complaint with RBI and also lodge RTI application with RBI.

 

In future avoid all Banks e.g. M/s ICICI Bank, M/s HDFC bank etc  that are not member of IBA, until they are member of IBA;

 

 

INDIAN BANKS' ASSOCIATION

www.iba.org.in/

 

 

Give me some breather to go thru some details.

 

In the meantime Mr. Bharat may support you as per availability of his time.

 

 

In the meantime if you wish you may post your location while in employment, and current location and confirm if the employer has an office at your current location?

You may also post the jurisdictional courts as inserted in the employment agreement drafted by employer and signed with you.

 

It is required to be known in your matter.

 

If you are concerend about  confidentialiy and you don't want to post, you may mention it.

 

If you feel comfortable, send PM.

 

 

 

 

 

Location is Bangalore. I will PM you the agreement.

The earlier message was only for location.

Don't send anything until asked.

Regret examination of any voluminous docs may not be possible/instantly possible.

Employer cannot (in general sense) without your outstanding salaries and other statutory dues unless your service has been terminated following prinicple of natural justice. 

In your case, the company has itself closed its operation. If such 'closure' is not done following the rules and appropriate compenstation has been paid, then you can yourself sue the company. 

However, it is a fact that you have become director of new company while you were still in employment of the former. If proved, this can lead to double employment which is prohibited. 

At no cost, the employer can make you responsible for the non-payment of client's dues.

It is advisable to consult a lawyer with all your documents for better responses. 

 

1. Get the lien vacated since ‘Excess salary’ is not paid. You have posted that you have not been issued with any appointment letter, showing promised wages/amounts.

“Mr Bharat - I have not given the appointment letter containing salary”.

Do you have any document showing salary/CTC/wages/promised amounts e.g; annexure to agreement, salary slip etc…………………………..?

In any case M/s ICICI Bank has opened salary a/c after dye attestation from employer and has record of proceeds deposited in salary a/c.

Comment ‘Excess Salary’ is not a direct charge in relation to alleged violation of agreement signed by you. If no Excess Salary is paid then employer and M/s ICICI Bank should vacate the lien.

Has your own counsel advised to file police/criminal complaint for nonpayment of earned wages/breach of trust etc  and/or file recovery suite and/or winding up petition etc?

 

The company has issued notice for closure does not necessarily mean that has become nonexistent/defunct, with immediate effect. However it may.

You would also need some entity to fasten your claim!

How can you claim form a nonexistent/defunct company?

How shall a nonexistent/defunct company claim from you?

 

2. If the company has issued notice for closure to its employees then it should have notified to O/o Labor Commissioner as well. Have you checked?

 

3. If company has issued notice for closure to its employees then it is obvious that employees will initiate to firm up next venture.

 

What else employees shall do or are expected to do by the management of company that has to close: SELL BHAJIYA?

 

4. Step 1-10. Let your able counsel advise you what is to be stated by you and when!

 

5. You have signed an agreement ( that has not been examined and neither any other communication on record) and by virtue of said agreement signed with a company that is to be closed/closed/ nonexistent/defunct…………………..the establishment may still have a right to approach court of law, to press the agreement.

 

6. The client can contact/approach anyone for work it wants to perform.

 

7. If company is being closed then it cannot twist the arm of client to pay or it won’t let the client perform its work. Company can approach court to recover it dues from client.

 

8. Hopefully client has not signed any NON Poaching Agreement.

 

It is obvious that you have issue and you need the support of a very able counsel specializing in Labor/service matters and well versed with such matters.

It shall be certainly better to get considered opinion after due examination of all docs, facts of the matter.

 

 

 

 

 

While posting such queries employee should post full basic information :

e.g;



Have you been issued with appointment letter? ( Noted; NO, as posted by you.) 



You may post the exact extract from offer/appointment letter/agreement on termination/resignation,Notice pay in lieu of notice period,payment of wages, CLOSURE, sell OFF, Takeover, retrenchment  etc etc.

What is your designation and nature of duties in offer/appointment letter/agreement and on record/ in practice? Did you have any power (not just recommendation) to sanction leave/increment/appoint/terminate? Can anyone cancel/amend/change/alter your recommendations?



Is any date of payment of wages mentioned in appointment letter?


How was salary paid; cash/cheque/in bank a/c ( Noted; Bank a/c) ?

Did you sign any voucher? Do you have copy? Did you put date of payment on it?

You were in which state (Noted; Bangalore, Karnataka) ?


What is this establishment; Commercial/Industrial (Not confirmed by you)?

 

What is its line of business?



Does it have Certified/Model standing orders and does it apply to your designation? (  If yes confirm it is (Model/certified). 


Are you a member of employees/trade unions?


What was your last drawn salary in Rupees?

You were under probation/confirmed?


Did company open a salary a/c for you, by signing introduction or it is transferring salary in your personal a/c ( Noted; Salary a/c in M?s ICICI Bank)?

Has it been supplying salary slips ( at least a day before date of payment of wages)?



Did you get I.Card, Visiting card,salary slips of all months, acknowledgment of notice/final resignation and acceptance ( Noted; Closure of establishment notice received) , PF a/c number and a/c slips, ESIC card,Form16, service certificate, relieving letter  {Noted; Yes (with good comments, confirm)}, NOC/NDC, handover of charge/assets etc?


You have worked for how many months?


How many persons wee employed in it and what was max. no. at any time?

Has your FnF statement bee supplied by the company and FnF been settled by company?

 

Dear Mr Kumar, Thanks for your continous suppport.

Have you been issued with appointment letter? ( Noted; NO, as posted by you.) - I received appointment letter including salary details but have not given this to Bank.

What is your designation and nature of duties in offer/appointment letter/agreement and on record/ in practice? Did you have any power (not just recommendation) to sanction leave/increment/appoint/terminate? Can anyone cancel/amend/change/alter your recommendations? no Power to sanction leaves

Is any date of payment of wages mentioned in appointment letter? No specific Date mentioned

How was salary paid; cash/cheque/in bank a/c ( Noted; Bank a/c) ? Bank ac

Did you sign any voucher? Do you have copy? Did you put date of payment on it? No

You were in which state (Noted; Bangalore, Karnataka) ? Yes

What is this establishment; Commercial/Industrial (Not confirmed by you)? Commercial

What is its line of business? Software development

Does it have Certified/Model standing orders and does it apply to your designation? (  If yes confirm it is (Model/certified). Not sure

Are you a member of employees/trade unions? No

What was your last drawn salary in Rupees? Will PM

You were under probation/confirmed? Confirmed, have letter of confirmation

Did company open a salary a/c for you, by signing introduction or it is transferring salary in your personal a/c ( Noted; Salary a/c in M?s ICICI Bank)? Yes salary ac
Has it been supplying salary slips ( at least a day before date of payment of wages)? Supplied salary slips but after 4-5 days of salary credit in bank

Did you get I.Card, Visiting card,salary slips of all months, acknowledgment of notice/final resignation and acceptance ( Noted; Closure of establishment notice received) , PF a/c number and a/c slips, ESIC card,Form16, service certificate, relieving letter  {Noted; Yes (with good comments, confirm)}, NOC/NDC, handover of charge/assets etc? Yes, relieving letter mentions that I have no dues

You have worked for how many months? 13 Months

How many persons wee employed in it and what was max. no. at any time? Approx 200

Has your FnF statement bee supplied by the company and FnF been settled by company? No, that is also being held

 

I appreciate your thanks for our continous suppport.

If you post everything in the thread it is for your own benefit as you  may receive many advises from many members/experts.

You have not replied to all points, pointwise.

 

e.g; "What is your designation and nature of duties in offer/appointment letter/agreement and on record/ in practice? Did you have any power (not just recommendation) to sanction leave/increment/appoint/terminate? Can anyone cancel/amend/change/alter your recommendations? no Power to sanction leaves"

 

For understanding from my point of view post reply to all point, pointwise.

If there is anything that you do not want to post in this thread you may PM, and don't forget to mention the weblink to this thread, in your PM.