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Vikram (Manager)     17 September 2013

F&f settlement

Dear Sir,

I was employed in a delhi base firm for around 18 months. This firm was doing business of around 60Crores and not listed as "Pvt Ltd" or "Ltd" company, basically it is a partnership firm. 

I have resigned with the notice period of 9days (given the resignation on 22nd & left on 30th), this firm has not confirmed my services in writing after six months (as written in my appointment letter)so either parties can leave without any notice period (as per my appointment letter). I have received the acceptance of my resignation from HR Head on the last working day.

My salary has been stopped immediately by employer and Now they are not doing my F&F. Around 2.25Lacs are on stake that include my Ex-Gratia+LTA+Salary+Other Reimbursements.

They are harassing me that sufficient days notice period not given by me, as per HR my services automatically get confirmed because i have spent more then 240days with this company, they are giving reference of Delhi Shop & Establishment Act. but if they deduct the salary in lieu of my notice period which according to them is 1month, still they suppose to release the payment of Rs.1.50Lacs.

Kindly suggest.....my financial situation is very tight and employer is not turning up at all.

Thanks in anticipation.     



Learning

 3 Replies

Kumar Doab (FIN)     17 September 2013

It shall be appropriate to show all docs including but not limited to job advertisement, interview call letter, selection letter, offer letter, appointment letter, standing orders applicable to the establishment…………………… The lawyer that has seen all of your docs can advice you the best. 

Standing Orders applicable to the company (certified or Model) shall prevail upon appointment letter. Service conditions stated in appointment letter can not be negated to employee in appointment letter.

If Payment of Wages act is applicable to the company Standing Orders should apply to it.

You may check if the standing orders are applicable and have been extended to your designation.

The language stated in clause of confirmation shall matter and should be looked into carefully.

If it is stated in appointment letter that after 6 months employment shall be confirmed in writing ( after appraisal) then till it is confirmed in writing and accepted by you it should not apply. It is duty of bosses in the company to initiate and complete the appraisal in time and inform (by effective means of communication) to employee the services have been confirmed or not?

 

Company might announce some changes in service conditions post confirmation or may state that service conditions stated in appointment letter shall remain same, however since company has to announce impact confirmation on service conditions the letter of confirmation of service should be supplied and acceptance be obtained and accepted copy be inserted in personnel file and entries be made in service card.


Generically speaking, as per your post nothing of that sort has happened, therefore on record your services should remain as unconfirmed. Therefore the notice period as applicable in probation period should apply.

You have posted your title as ‘Manager’.

 

Your lawyer may ask you a set of structured questions and can opine that you would be covered as ‘Workman’ as in ID Act and ‘Employee’ as n Shops and Commercial Establishments Act……………………..or not and what would be appropriate forum for you.

Designation alone does not decide employee is a workman or not.

You have posted that:

-------“ I have received the acceptance of my resignation from HR Head on the last working day.”

 

Hope you have handed over the charge, company property under acknowledgment, and have completed all tasks and nothing is pending at your end.

 

Although probation period is NIL you have tendered a notice of resignation and have not caused abrupt termination, therefore you have displayed character, sincerity.

 

The 9 days notice period should have been utilized by the good for nothing HR persons to complete all exit formalities.

These HR persons to prove their existence are trying to extort monies on false pretexts and are using coercion and intimidation to extract the amounts which are not due on employee.

 

You may charge them by name.

 

 

------“My salary has been stopped immediately by employer and Now they are not doing my F&F. Around 2.25Lacs are on stake that include my Ex-Gratia+LTA+Salary+Other Reimbursements.”

 

The day for payment of FNF wages is usual pay day.

 

 

-------“ They are harassing me that sufficient days notice period not given by me, as per HR my services automatically get confirmed because i have spent more then 240days with this company, they are giving reference of Delhi Shop & Establishment Act.’

 

 

Have they stated so in writing?

 

We have not come across such clause in the Delhi Shop & Establishment Act……………

 

 

 

------“ but if they deduct the salary in lieu of my notice period which according to them is 1month’

The amounts which can be deducted from wages of the employee are well defined in various enactments, including Payment of Wages Act and Delhi Shop & Establishment Act……………

Since noticed period is not applicable you may decline to accept FNF statement and settlement and state in writing the payment is received under protest.

 

Delhi Shop & Establishment Act……………

37. Powers and duties of the Inspector.

(b) Duties of the Inspector

(i)  that in dispensing with the services of an employee the provision of the Act and Rules have  been  complied  with  and  no  dues  payable  under  the  Act  or  Rules  have  been withheld;

You may also go thru:

>>>> Delhi Shop & Establishment Act

30. Notice of Dismissal.

 

(a) Applicability of section 30:………………. In the absence of any standing orders or any contract between the employer  and  the  contesting  respondent  containing  any  particular  terms  or  conditions,  the conditions of service of the employee relating to his employment in an establishment at Delhi are covered by section 30(1) of Delhi Shops and Establishments Act

{ In your case there is a contract i.e. appointment letter with particular conditions, hence the appointment letter should apply, and not the Act. If standing orders are applicable the standing orders should apply. As per Model Standing Orders notice period/pay applicable to probationer is NIL.}

 (b) Notice or wages in lieu thereof under section 30—When to be given?

 

(d)  Section  30  of  the  Delhi  Shops  and  Establishments  Act,  1954  does  not  exclude  the application of the Industrial Disputes Act, 1947

……………………….. So judged  from  any  angle,  the  Delhi  Shops  and  Establishments  Act,  1954  does  not  exclude  the application of the Industrial Disputes Act, 1947, provided the person concerned is a workman and the shop or establishment is an industry as defined in the Act;

{Your designation is a manager and you may not be a workman. The Delhi Shops  and  Establishments  Act should not be applicable in your case. }

……………………….. The object of the provisions of Delhi Shops and Establishments Act is entirely different from that of the Industrial Disputes Act. No doubt on the basis that the petitioner’s business is a shop or  establishment  and  the  respondent  is  an  employee  within  the  meaning  of  Delhi  Shops  and Establishments Act, the said Act would be applicable to them, and on the basis that respondent is a  “workman”

{Your designation is a manager and you may not be a workman.}

34.  Employer  to  furnish  letters  of  appointment  to  employees.

20.  DEDUCTIONS WHICH MAY BE MADE FROM WAGES.

21.  CLAIMS RELATING TO WAGES.

 

>>>> THE PAYMENT OF WAGES ACT, 1936 (Applicable to all employees drawing wages as per def. of wages in the Act up to Rs.18000/pm)

2. Definitions………3*[(vi) "wages" means………………..(d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

3. Responsibility for payment of wages

4. Fixation of wage-periods.

5. Time of payment of wages.-

7. Deductions which may be made from wages

 

Do you have copy and POD of the resignation tendered by you?

Represent by letter thru redg. post, to the good offices of appointing authority, MD, and conclude that you have submitted notice of resignation/resignation on dated……………..as per clause number………..in appointment letter dated…………………issued to you…………………and have met in person visited Mr/Ms………………..designation………………………on dated and have handed over the charge/ company property ( or affirm to handover the same) and no tasks were pending at your end and that you have finally resigned on dated………………………………which is duly accepted by Mr/Ms………………designation on dated………………..

The acceptance of resignation, service certificate, relieving letter, correct FNF statement, Form 16 as per correct FNF statement, payment of FNF dues by bank DD only, PF number, PF a/c slips for entire period of service be supplied to you by redg. post only within next say 7 days………..

It shall be appropriate if your representation is drafted by your lawyer.

Based on reply of good offices you may proceed further.

Employee can approach:

Law/Law Firm; legal notice from your lawyer may drill sense into the heads.

Trade Union Leaders

O/o Labor Commissioner: labor Inspector………..

 

Inspector Under Shops and Commercial Establishments Act ( One of the jobs of Inspector should be that in dispensing with the services of an employee the provision of the Act and Rules have  been  complied  with  and  no  dues  payable  under  the  Act  or  Rules  have  been withheld)

 

Inspector under Payment of Wages Act (applicable to all employees drawing wages as per def. of wages as in the Act up to Rs. 180000/pm)

 

Civil Court

There are threads to indicate employees have been contemplating to lodge criminal complaint under sec 406/420………………………..and approach employers as Creditors treating the employer as Debtor and unpaid wages as debt on employer…………….

 

https://www.lawyersclubindia.com/forum/details.asp?mod_id=72011&offset=1#.UNRXofLZ1JI

 

Discussion > Labour & Service Law > Disputes > Delay in full and final settlement payment

 

 

 

 

 

 


Attached File : 952406002 delhi shops & establishments act, 1954.pdf downloaded: 87 times

Vikram (Manager)     23 September 2013

Dear Sir, Thanks a lot for such a detailed reply. Already one month has been passed since I left the organization. Confirmation of resignation has been received through "company mail domin -- HR Head" only. As per you suggestion, will approach lawyer to send them a legal notice. But my only concern is that this may engage me in a law battle filed and can affect my current employment. Kindly suggest. Thanks & regards,

Kumar Doab (FIN)     23 September 2013

Some employees by virtue of their position/designation, approach to influential and reputed individuals, community leaders, achieve some kind of handle on employer. If you any such handle apply it. Some employees can apply goodwill, rapport, exceptional levels of persuasion, persistence, negotiation, reasoning skills, adaptability, flexibility and resolve the situation in favor…………….. You may try. You are right litigation can be stressful for some employees. Litigation can be lengthy also. Why don’t you discuss with elders in the family, competent and experienced well wishers……………………and take a well thought and qualified call on your matter. Limitation period in your case may be 3years for civil suite. The lawyer that has seen all of your docs and has analyzed your inputs can advise you better on the merits. Visits your lawyer along with your elders. There are two options: You may either forget the amounts as a parting gift Or get the payment. It is your call. Choose the most suitable option and proceed as deemed fit at your end. Choose wisely.

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