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Prasun (unemployed)     27 April 2011

Complex Employment Problem

I was approached by a West Bengal based proprietory company to join them as an Executive Director to set up and then work in their newly established Mumbai Office. The appointment letter was sent from West Bengal duly signed with designation seal with a salary of Rs. 60,000/- per month. Once I accepted the offer and sent then the duplicate copy of the appointment letter duly signed by me, one day they called me over telephone and told me that presently they will pay me 50% of the salary and the balance unpaid salary after one year. As I left my previous employment already, I had no option but to accept 50% salary at that point of time. However, all these matters were done over telephone.

After establishment of office in Mumbai, I used to send the West Bengal office a statement of expenses against the remittances made and in all such expense statement I mentioned transfer of my salary as " Part salary to.....". Suddenly after one year they decided to close the office and because of non availabilty of funds in local Bank, I could transfer my "part salary' only till March, 2011.

I have not received any written notice regarding my termination of service and understand that not a single penny will be paid to me any more. My telephone calls, e-mails are not receiving any response. Yes, the letter of appointment do not mention anything on notice to be tendered if service is terminated.

Please advise me and guide me what should I do to recover my unpaid salary and what is my current employment status? Which authority should I approach to recover my dues? Do I need to approach authorities in West Bengal as they are doing business there? I am unable to manage my family for this sudden incident.

Please help me.



Learning

 2 Replies

Kumar Doab (FIN)     27 April 2011

You received your appointment letter at your station (not Mumbai). You have the original appointment letter. Hope you have the cover also in which appointment letter was sent. In your appointment letter they must have written your address of your station (not Mumbai) and must have described that you shall be located at Mumbai.

You must have received the reimbursement of expenses to relocate to Mumbai. You accepted the offer with salary of Rs.60000/PM.

Surprisingly you were debiting the amount of Rs.30000/- in expense statement from the funds received to run the office, towards your 50% salary. The bank a/c was in your name or in the name of company, and who opened this a/c?

It appears you were not issued any salary slip.

You must have recruited some staff. It is believed you were debiting their salary and office expenses from the funds sent by the company, and showing it in the expense statement prepared and submitted by you.

The staff if any, was issued any appointment letter or not, and who signed it? The staff was issued any salary slip or not, if yes who prepared or signed it?

Did you receive any official communication during one year or not? If yes do you have copies?

The decision to close the office was also probably, intimated to you on phone. The bank a/c at Mumbai was closed or not?

You have sent emails and have made phone calls, although these are not being responded.

After the closure of Mumbai office (reason of closure not placed on record to you in writing) it is also important that either you resign, or you are terminated in writing, or you receive written instructions on your next reporting. From your side have you informed the company, that on dated.. Mr…has informed you the decision of the company to close down Mumbai office and till further instructions you should shift back to your native station.

It shall be appropriate to show all records to a competent service lawyer/law firm and the lawyer may send structured communications.

Until or unless company responds it is difficult to make out what shall be their strategy.

 

Opinion of learned experts/members of the forum is sought.

Kirti Kar Tripathi (lawyer)     27 April 2011

 

In these circumstances, you have no option except to issue legal notice mentioning entire facts and demanding you dues and joining. If your employers do not give any response or refuses to your demands you have no option except to seek legal recourse. The question from which forum and from where you can get relief is still a question and also is a complicated issue. As firstly you can not seek reinstatement under the law as contract of personal service can not be specifically enforced thus for your illegal termination you can get only damages and compensation, which you have to assess yourself. Further fore your dues you have filed civil suit. Thus in every circumstances i.e. for claiming damages and compensation and for dues, you have to take shelter of Civil Court by filing the Civil suit for which you have to pay huge amount by way of Court fee. The process is also very time taking. 

 


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