Neha (Nil) 17 August 2010

Mistake by Employer

Respected Sir,

I have been working with a software company in Bangalore since 2006. Last year (2009 Sep) I ask my employer for 6 month leave to support my family. My employer approved the same under the option of Leave Of Absence or called Loss of Pay (where company will not provide salary or any benefits). Later in 2010 Feb, I ask my employer for few more month extension under the same rule. But they refused to approve and ask me to resign.

Ironically, my family situation continues to be same. Therefore, I decided to resign based on the request given by the employer. Within few days of resignation, I have been informed by my manager that, company was crediting salary to my account on all these days when I was on leave (for last six month). Also, they acknowledge that this is a serious mistake from employer side that, they paid salary for someone who is on leave without pay.

Since I was out of India of all these days (from 2009 Sep to till today), I haven’t checked my account since I am aware that I don’t have any source of income.

However, my manager advised me to payback this money when they do the settlement and I agreed do so.

Last month, they called me for final settlement and asking me to payback the amount that they credited in my salary account and Income Tax paid by the employer on these earnings. I was shocked after hearing this. As per my understanding I am liable to pay the money that they credited to my account. Also, they are holding my relieving process because of this reason.

From my limited knowledge, I can’t figure out what to do and where to go for this money. Also, I am with my husband since 2009 and not in India.

Now, I am not in a position to look for other Job and literally in a lock because of this mistake done by the account department. This inconvenience really causing me to not to work and earn something for my family.

Can someone please advice me on what ground should I stand. How do I get justice on this?

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3 Replies

V. VASUDEVAN (LEGAL COUNSEL) 19 August 2010

Your stand is a perfect one. You have been honest and agreed to return the actual monies that were credited by the employer. The Employer's claim for the Tax deducted at sources is totally untenable and unfair to a person who has been honest. If the management has done some wrong, it should be honest enough to accept it and either try to recover the tax from the IT Department or suffer the losses The claim for refund of TDS must be

made by some middle management team to save their skin!!!. Please write a detailed letter to the CEO/highest authorities, in the first instance. In case of no relief, mark a letter to the labour authorities, by speed post and if you have some relatives locally to meet the labour authorities with your representation.

vasudevan

Neha (Nil) 19 August 2010

Respected Sir,

Thanks for your support. As per your direction, I just sent a mail to the concerned person (not senior manager at this moment) regarding the same while asking them to acknowledge or take the responsibly of this mistake and do the final settlement.

I think I should give them sometime to respond to this mail. Right?

Can you please advise me what shall be the next step in case if they are not responding ?

Thanks in advance.

Kumar Doab (FIN) 24 November 2010

Learned Mr. V. Vasudevan has has provided a workable solution.

You should not hesitate and supply your communication to the MD/Chairman/CEO of the company and VP-HR and mention specifically that you had sincerely offered to refund the money although you are not at fault.

You can not be and you should not be Penalized for the error of the company and TDS amount is not payable by you.

You may mention that due to the fault of the company and none of your faults your relieving letter is being withheld and you are not in a position to look for other Job and literally in a lock because of the lapse on the part of the company. This inconvenience really causing you not to work and earn something for your family.The higher authorities only may provide you relief.

or the labour authorities shall get you the relief.