anurag (dy manager) 30 July 2014

Non payment of salaries

Dear Sir/ Ma`am,

I have been working as senior manager with one of the upcoming power projects in jharkhand. For last 18 months my employer has not given me and other employees salaries, only kept us saying the your salaries will be paid soon.

But on 18 July 2014 they have given us letter of cessation of services and not describing anything regarding clearance of our dues and salaries.

It is heard through news agencies that its main lending bank SBI has started the biding process for the plant. What legal action we can take against the company so that our dues gets clear. Pls suggest.

Thank You

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1 Replies

Kumar Doab (FIN) 30 July 2014

The employer didn’t pay for 18 months and you are working for 18 months.

You should not have worked for single day if wages for the first month were not paid on usual pay day.

Employee can lodge a complaint the moment his wages are not delayed even by a day.

The company was probably under secured lending by SBI and is probably under liquidation by the lender SBI, and you and all affected employees should lodge claim before liquidator AS AP.

You may find another thread as relevant:

https://www.lawyersclubindia.com/forum/Company-in-liquidation-77247.asp#.UbRtnOeAqWN

Labour & Service Law > Others > Company in liquidation

As per the judgment in case of liquidation, Workmen’s Dues (pari passu with Bank Dues) come in the last.

Approach a local Labor Consultant/Service lawyer well versed with such cases and proceed under his expert advice.

Your lawyer can advise that you would be covered as ‘Employee’ as defined in (Name of the state) Shops and Commercial Establishments Act, and ‘Workman’ as defined in ID Act.

Designation alone does not decide employee shall be covered or not.

Approach a local lawyer AS AP.