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priya (AM)     27 October 2010

Full and Final Settlement

An employer asked few of their employees to leave on staff reduction criteria saying the process they work in is not profitable hence asked to leave promising one month salary. Want to know if this one month salary is gross or basic pay. Employer promised to pay the entire salary. Now the employer is saying only the basic will be paid since its mention in the appointment letter that if either party is leaving or asked to leave will pay a month salary. Please advice what are the benefit the employee is eligible under such circumstance. The employee was not even asked to serve the notice period was called and informed to leave immediately on the last working day of the salary cycle. the resignation and relieving letter states the same day. Now the payment received is the basic and leave encashment. This settlement was also paid only after 4 months of continues follow up. Its very disappointing that even when the employee was cooperative in terms of resigning immediately and accepting their verbal confirmation on full salary. In such scenario what legal step can the employee take and what compensation can be claimed.



Learning

 8 Replies

Pathikrit Naha (DGM - HR & ADMIN)     27 October 2010

Employees means what ? Are they workmen as per definition of Industrial Disputes Act? It depends upon designation as well as nature of work.

Managerial people can get relief in the civil court of law but for others ( workmen ) there are long procedure under the ID Act.  Conciliation officer & labour tribunal have major role on it.

Total nuber of employees is also one factor.

Calculation based on basic is justified as the employees have not worked actually.

regards

P.NAHA

priya (AM)     28 October 2010

It’s a BPO set up and it was couple of managers and supervisors were asked to leave since the organization said couldn’t bear their cost any more. But they were informed a full salary will be paid, however they were paid just the basic. Do these employees have any chance of fighting case against the employer?

joseph rajan (sr. personnel manager)     01 November 2010

My name is Josph Rajan. I have earlier employed with M/s Safe & Sure Marine Services Pvt. Ltd. company located in masjid bunder (west). My service period was 01st May 1999 to 17th July 2010. I was the founder member of the company. From 01st January 2010 to 17th July 2010 my employer had not paid my salary. The total amount which is due with the company is Rs1,90,452/-.Since the company did not paid me for 6 months and 17 days  i resigned from the company. During the stated period i requested my employer to release my salery they were reluctant to do so stating that they dont have sufficient funds to clear my salary. In this regard I have got my service certificate and my bank statements to clarify regarding my above said outstandings. After resigning from the office i had visited company several times asking for post dated cheques , still the company is refusing to clear my payments stating that the cheques will be discredited as they are not having funds. This has resulted in my weak financial position as such i am not able to run my family expenses. My request is that whether i can receive my salary from my previous employer who I feel is not trustworthy and is unwilling to release my above stated salary. Where should i approach. I need your help. Please advise whether i will receive my outstanding salary.

Mr Joseph Rajan

  

Pathikrit Naha (DGM - HR & ADMIN)     01 November 2010

Dear Mr Ranjan,

You should approach to the Pament of wages Inspector. Normally Factory Inspector is empowered to function as Authority under Payment of Wages Act. If you are in office then you should contact Shops & Establishment Directoriate. They should guide you.

You approached several times to your employer , that must be documented.

 

regards

P.NAHA

joseph rajan (sr. personnel manager)     03 August 2011

this is to inform that i joseph rajan has recieved  rs. 1,50,000/-  of  my total outstanding amount of rs, 2lacs five thousand. same its for your   kind information.

Kumar Doab (FIN)     04 August 2011

You approached your employer for payment of your total dues. As per your post your employer has paid you Rs.55000/ less. If your calculation is correct you may ask your employer the reasons for less payment. If the calculation of employer is found correct by you, you may drop the matter. If the employer's calculation is wrong then you should agitate and report the matter as advised by learned Pathikrit Naha.

You should not leave Rs.55000/ as a parting gift with company. You can demand interest.

joseph rajan (sr. personnel manager)     10 January 2012

sir,

i received my full & final settlement of my salary dues from my previous company Rs. 55,461/-  ( Fifty  Five  Thousand and  Four  Sixty One ).  thanks,  This is for your  kind  information.   

j

Kumar Doab (FIN)     10 January 2012

@ Joseph

KIndly educate as many as fellow colleagues, near and dear ones, fellow citizens as you can and make them aware of their rights, and thus let as many fellow colleagues rise and defend their rights.

This is the most imp. contribution you can make to the society and nation.


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