Sahil 27 July 2016

Ex employer not paying pending salary since 6 months

Hello,

It has been 5 months since I quit my earlier company - A local startup in Print Media/Magazine, Chandigarh. I had to put in my papers because of several reasons - one of them being delay of salaries since 2 months. When I had quit, my 2 months salary was pending. It has been 5 months since then, and they haven't paid me the pending salaries yet. Pending amount is nearly Rs. 53k. They have been giving dates for the last 6 months, and once the said date approches, they reset the date to a further later date. No one from management replies to my mails, phone calls or text messages otherwise, and if I visit their office so they don't meet.

I was in contact with one of the directors who has a very small stake in the company. He keeps on delaying it with different excuses of no funds, delayed payments from other sources and also by saying that he doesn't control the decisions of the company, only the managing director is the authorised person do clear my pending payment. The managing director has not been replying to my repeated requests/emails. The company is very much operative, their magazine issues are getting printed & reaching the market every month.

There are about half a dozen of us who had left the company at pretty much the same time, and none of us have received the pending salaries.

I have also heard from few sources, that the directors of the company aren't good people, as they have influential background, politically powerful & close to ministers.

How do I recover my pending salary? What is the best way forward in a case like this -
a) Legal : Should I file a legal case against the company?
or
b? Should I approach Labour department?

The company is currently bleeding several lacks of rupees every month, and the director has given a lifeline funding of a small amount for clearance of dues. When I asked the directors of the company to pay my pending salary, I also got to know that they were paying salaries to the existing employees, all printing & office expenses, including their lavish personal expenses too.

Thanks in advance.

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14 Replies

dr g balakrishnan (advocate/counsel supreme court) 27 July 2016

Approach relevant labor commissioner, who could conciliate and get you relief, 1st step.

Kumar Doab (FIN) 27 July 2016

What was your designation and nature of duties?

You have worked for how many months?

Did you submit notice of resignation or resignation with immediate effect?

Did you mention reason for resigning as Non payment of earned wages in notgice/resignation,subsequent communications?

What was your salary/month?

Did you get any appointment letter, salary slips of all months, PF number and a/c slips, ESIC card,Form16, acknowledgment and acceptance of notice/resignation, service certificate, relieving letter etc?

Sahil 29 July 2016

Originally posted by : dr g balakrishnan
	Approach relevant labor commissioner, who could conciliate and get you relief, 1st step.

Thanks. I will do it asap

Sahil 29 July 2016

Originally posted by : Kumar Doab
	What was your designation and nature of duties? You have worked for how many months? Did you submit notice of resignation or resignation with immediate effect? Did you mention reason for resigning as Non payment of earned wages in notgice/resignation,subsequent communications? What was your salary/month? Did you get any appointment letter, salary slips of all months, PF number and a/c slips, ESIC card,Form16, acknowledgment and acceptance of notice/resignation, service certificate, relieving letter etc?

Designation:
Asst Sub Editor

Nature of duties:
Basically, Coordination between different departments, being part of Shoots, Interviews, Stories, Editing work, Visualising & assisting designers, Event Mgmt., Handled Marketing team of 3 associates for 3 different Regions including going myself for Ad & Distribution.

Worked for 3 Months.

Wanted to serve notice period but they didn't let me, and asked me to leave from immediate effect as I was asking for my 2 months salary, and that too when I was going through very hard times. My father's treatment was goin on in PGI. So I submitted resignation with immediate effect on last date of 3rd Month.

Yes, I mentioned "Non payment of salaries" as one of the reasons in official communication on last day, I got a very harsh mail from one of the directors right after I sent them a request mail to confirm final date of payment first, putting all kind of blames he could but he even knew it was all baseless?

Salary/month?

Rs. 25K/Month

Yes I got duly signed appointment letter, but they didn't provide any salary slips. I can show the bank transaction for first month (which was also late by 14 days). They didn't have any provisions of PF or anything. I do have acknowledgment and acceptance of notice/resignation in the same mail. They didn't give me experience certificate or relieving letter, as they used to say We will give it along with the salary.

Kumar Doab (FIN) 29 July 2016

"Wanted to serve notice period but they didn't let me, and asked me to leave from immediate effect as I was asking for my 2 months salary.........................Yes I got duly signed appointment letter, "

What is the notice period mentioned in appointment letter? Is there clause on notice pay in lieu of notice period?

Do you have any evidence (audio/visual/witnessed/minuted) of demand/force/pressure etc of resignation?

Did you resign with immediate effect or by notice Or did you mention LWD/notice period in resignation?

As 'Asst Sub Editor' if your nature of duties and in appointment letter and in practise are within the def. of 'Workman', or if the establishment is covered by Shops & Estbs Act and you by def. of 'Employee' in th said act then you can approach o/o Labor Commissioner.

"Yes, I mentioned "Non payment of salaries" as one of the reasons in official communication on last day"

This may render notice period as void since employer breached trust and its own obligation to pay earned wages on due date.

Sahil 29 July 2016

Originally posted by : Kumar Doab
	"Wanted to serve notice period but they didn't let me, and asked me to leave from immediate effect as I was asking for my 2 months salary.........................Yes I got duly signed appointment letter, " What is the notice period mentioned in appointment letter? Is there clause on notice pay in lieu of notice period? Do you have any evidence (audio/visual/witnessed/minuted) of demand/force/pressure etc of resignation? Did you resign with immediate effect or by notice Or did you mention LWD/notice period in resignation? As 'Asst Sub Editor' if your nature of duties and in appointment letter and in practise are within the def. of 'Workman', or if the establishment is covered by Shops & Estbs Act and you by def. of 'Employee' in th said act then you can approach o/o Labor Commissioner. "Yes, I mentioned "Non payment of salaries" as one of the reasons in official communication on last day" This may render notice period as void since employer breached trust and its own obligation to pay earned wages on due date.

I was on Probation period of 3 months from the date of commmencement of my job, which could be further extended to 3 months at the discretion of the management. Notice period during Probation period was 07 days notice/payment of 07 days salary in lieu thereof from either side. However, after confirmation of services, this appointment can be terminated by either party on one month notice or month basic emoluments in lieu of the notice period.

No, I don't have any evidence as such but yes I have the mail in which he himself wrote that they have stopped salary due to funding issues and have not paid salarry for 2 months.

I left the company with immediate effect (with mutual consent, at least from my side) as I mentioned it in the mail, but I did attend full day and signed day out on time. I do have No dues mail from them. And, all this happened on last day of the month i.e. 28th Feb. before that day, they were behaving normal and kept delaying by saying, we will pay in 2 days, 5 days and so on. In second week of the month, once when I went to HR to ask for salary, she said the other director needed to have a word with me, and it was conveyed to me that if I keep coming to ask for salary (previous month's salary) like this, so I am free to leave the company and it was said in quiet a dominant manner. I still kept quiet because I knew if I quit now, they won't pay me last month's salary.

They have only mentioned my designation but no duties or responsibilites in the letter and reporting to the Editor or other officers of the company.

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Kumar Doab (FIN) 29 July 2016

"Salary/month?

Rs. 25K/Month"

Approach Inspector appointed under Payment of Wages Act.

This Act does not discriminate between 'Workman' and 'Non Workman'.

If you are unable to resolve on our own approach a very able counsel specializing in Labor/Service matters.

Your counsel may opine that you are coveredf as 'Workman', 'Employee' and you can approach o/o Labor Commissioner.................................file complaint u/s406,420.............winding up petition.

Sahil 31 July 2016

Originally posted by : Kumar Doab
	"Salary/month? Rs. 25K/Month" Approach Inspector appointed under Payment of Wages Act. This Act does not discriminate between 'Workman' and 'Non Workman'. If you are unable to resolve on our own approach a very able counsel specializing in Labor/Service matters. Your counsel may opine that you are coveredf as 'Workman', 'Employee' and you can approach o/o Labor Commissioner.................................file complaint u/s406,420.............winding up petition.

Thanks a lot. I will go to Labour Court tomorrow.
I had a word with one of Local Labour Inspector, discussed my case & when I told him that my salary was Rs. 25K/Month then he said I can't approach Labour office as I worked with a Private Company, and the employee who's earning less than Rs. 18K/Month only are eligible to file a complaint (whether Govt. or Private), so asked me to approach Labour Court directly.
Do you really think, this will help me in any way?
Also, I mentioned the ex-employers don't have a good repo as they themselves brag about being very influential & having political connections as well.

One thing more, if you can tell me how much legal damages I can or I should claim from them now as its been 6 Months to all the mental harrasment. I have been really depressed, my bank account has no more than Rs. 100/- since then, I have no money, I have no job, I have not been able to do anything on my own either, as it needed some investment, I can't step out of home bcoz of no money, I have stopped socializing with friends & close ones, I even failed to bring any presents to family member's on their birthdays, during all this while, my father went through a surgery and so did my mother for another reason, but all I could do is being there and not even pay any bills or got their medicine, my father & brother beared all the charges, you can understand after all I have responsiblities towards my family. What all kind of charges I can press on them including litigation of course.

I want to teach them a lesson, they always remember. Will Social Media, Press/News Channel help me to let everyone know about this company's wrong doings, and show their real image, so that it damages their repo and they should feel the same, what all I have gone through?

Kumar Doab (FIN) 01 August 2016

Salary alone does decide a person shall be covered as 'Workman', 'Employee' or not.

It has alrady ben posted that:

"Salary/month?

Rs. 25K/Month"

Approach Inspector appointed under Payment of Wages Act.

This Act does not discriminate between 'Workman' and 'Non Workman'.

If you are unable to resolve on our own approach a very able counsel specializing in Labor/Service matters.

Your counsel may opine that you are covered as 'Workman', 'Employee' and you can approach o/o Labor Commissioner.................................file complaint u/s406,420.............winding up petition.

You can also approach employee's/trade union leaders..........................

Amol 18 August 2016

Hello Sir, I am Amol, I resigned my earlier company before 1.8 years ago. – A company is sheet metal dies , Jigs & Fixtures manufacturer in Pune, Maharashtra. I was working there from April 2000 to December 2014. When I was resigned that time my designation was ‘Manager’. I had to put in my paper because of several reasons - one of them being delay of salaries since 3 months. When was quit, my 3 months salary & full N final amount was pending. Till date they paid only Rs.25000/- (15000 in April 2015 & 10000 in June’2016). They haven't paid me the pending salaries & full N final amount yet. Pending amount is nearly Rs. 2.90lacks. They have been giving dates from the last 1.8 years, and once the said date approaches, they reset the date to a further later date. No one from account dept. or managing director replies properly to my mails, phone calls or text messages, and if I visit their office they gives only commitments that ‘soon they will do something about payment. Managing director was always given excuses of no funds, delayed payments from other sources. The company is very much operative. I have also heard from few sources, that Managing director may be close the company very soon. Also that company having some bank loans & they are not paying the instalment of loan amount. WE are 9-10 people are facing this issue. How do I recover my pending amount? What is the best way forward in a case like this – a) Legal : Should I file a legal case against the company? Or b) Should I approach Labour department? Give me the best possible solution Thanks in advance.

Kumar Doab (FIN) 18 August 2016

@ Amol,

All affected employees may join hands and stay united.

Have you consulted a very able counsel so far, with all employment related documents?

Amol 19 August 2016

Can I complaint to Labour commissioner ? Or go to Labour court?

Kumar Doab (FIN) 19 August 2016

You have not replied to:

"Have you consulted a very able counsel so far, with all employment related documents?"

Kumar Doab (FIN) 19 August 2016

Your counsel specializing in Labor/Service matters can opine if you are coverd by the def. of 'Workman' and complaint to Labour commissioner Or go to Labour court!