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Biju Nair (office manager)     28 January 2013

Salary and full & final settlement

Hello sir

My Name is Biju Nair and we have harassed to put our papper. My last working day with my company was 9th Januay 2013 with notice period. They have give me employment certificate and releiving letter.

They have not paid my december month salary and full and final settlement.

We have (me and my 2 other accounts executive) harassed to put our papper. Our company is German MNC. The  CEO created false billing everymonth which accumulated of 6500000/- (sixty five lacs). he has reversed it in december and told in Germany we have created false bill and hence fired.

Their normal practice is to delay the Full and Final Settlement and last salary.  Can i go legal against them.

My takhome was 34000/-

Biju Nair

 

 



Learning

 14 Replies

orson michael noronha (systems administrator)     29 January 2013

Bayer? Anyway if an Foreign Exchange violation has occured it attracts provisions of the FERA (Foreign Exchange Regulation Act) in addition to it if you have any notion of Economic Offences being routinely committed, get in touch with the EOW (Economic Offences Wing ) - a Branch of Finance Ministry with WRITTEN complaints detailing the extent of the loot. For your case to be made, you are advised to send it via Speed Post A/D so as to prevent "lost mail" syndrome  or vested interests tking the upper hand.

orson michael noronha (systems administrator)     29 January 2013

Also if you were forced to resign under duress with the promise of clearing your dues and "full and final setlement". If that has not been honoured - it is tantamount ot cheating and harassment. A VERY FIT case for litigation. The Labour Court in case your position is NOT requiring independent decision making in terms of policy or finances (even if you are deemed "Manager" or any such).


  It will need to be filed in the Industrial Court if you are indeed FUNCTIONING in the Managerial Position with policy making an/or monetary  decisions - like granting leave of subordinates, owing a company car and perks such  as personal cabin etc.

Biju Nair (office manager)     29 January 2013

Thank you for quick response. there is no foreign transaction violation since our salary is paid from India only.

Biju Nair (office manager)     29 January 2013

I have few question about full and final settlement and labour law

1. what is activity completed during Notice Period?

2.Is there any law for time specified to get full and final settlement?

3. In my case if i will go for litigation what all are possible legal decision?

 

Regarding the legal court decesion i happend to read in some article, there could be a fine of 8 times outstanding

with 2.5% interest. is this true in my case?

Om Prakash Dhusia (HR assistant)     29 January 2013

Mr Biju Nair

Dont jump into the sea if you do no know the swimmimg though it may be dead sea. First try to know whether you being the Manager would be governed under the labor laws prevailing at India or some other law applicable to supervisor or the managerial cadre. Grab this information through net or your friends and dont just go for the articles which you have mentioned in a very shabby English. Read carefully your appointment order or the contract letter which you have signed with your employers but do it fast. Why you should wait for others to do it for you?

Regards

Kumar Doab (FIN)     29 January 2013

You have posted that:

--“ My last working day with my company was 9th Januay 2013 with notice period.”

You are entitled to get payment of your wages up to this date in addition to salary for Dec.

--“ They have give me employment certificate and releiving letter.”

Reliving letter is issued post all settlements by employee and confirms that nothing is due at the end of employee.

Hence FNF statement should be issued and FNF dues should be paid.

--“ he has reversed it in december and told in Germany we have created false bill and hence fired.”

Has the company leveled any charge on you in writing and has it issued any show cause notice and conducted any inquiry.

You have submitted notice of resignation, have served full notice period and have resigned.

 

Have you mentioned in your notice of resignation or subsequently that it has been extracted by applying pressure, force, and coercion in office premises.

If yes you could have termed it deemed termination.

You could have withdrawn your resignation.

--“Their normal practice is to delay the Full and Final Settlement and last salary.”

All employees can join hands and be witness to each other.

 

The service conditions are given in standing orders of the company {if standing orders are applicable but have not been certified refer to model standing orders}, contract of employment/appointment letter.

You may approach a competent and experienced labor consultant/service lawyer with copies of all of the documents and records and discuss in person.

Your lawyer may ask you a set of structured questions and may opine that you are within the category of a workman.

You may go thru:

-- model standing orders:

. 13.        Termination of employment: (3)        Where the employment of any workmen is terminated, the wages earned by him and other dues, if any, shall be paid before the expiry of the second working day from the day on which his employment is terminated.

17.    Liability of 17[employer].—

18.  Exhibition of standing orders.--

--Payment of wages Act; 3{vi}, 5,13A, 15, 16, 19, 20….

3*[(vi) "wages" means all remuneration (whether by way of

salary, allowances or otherwise)

 

(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;

 

--You can claim payment of wages under SE Act if it is applicable to your establishment.

In a given situation employee can invoke the provisions of IESO Act, SE Act

{Approach Inspector under SE Act}, Payment of wages Act {Wages Inspector}, ID Act,

 as per explanation of employee under these enactments.

Your company may yield to legal notice by your lawyer, demand notice of conciliation officer, or notice from Inspector, or you may have to agitate in the appropriate forum.

 


Attached File : 1044453654 payment of wages act 1936.pdf, 1044453654 model%20standing%20orders.doc downloaded: 1005 times

Om Prakash Dhusia (HR assistant)     31 January 2013

Mr Kumar Doab. indisputably you have been doing yeoman service but the man who needs advise did not respond and the one who just want to help others is interested so much so that  he tried to download the model standing orders but that page has not been found available . Keep that spirit up and dont loose your heart by foolish comments from people like me.

Regards

Biju Nair (office manager)     31 January 2013

Mr. Kumar Sir

Thank you for your response. i have findout one advocate he is friend to my friend. I have submitted all relevant document like appointment letter, accepted copy of resignation letter, releiving letter, salary slip etc. We will discuss this further on Satuarday since he is traveling. In the first face he told to file "windup petition". all the other methods are time consuming.

Further i will update you by satuarday. thank you

Biju Nair (office manager)     31 January 2013

Dear Omprakash

Is this is for me? if yes i dont understand...

Om Prakash Dhusia (HR assistant)     01 February 2013

Yes dear Biju Nair, sometimes we feign many things. God bless you with success in your efforts, dont run behind ranting of the people like me.

Regards

Kumar Doab (FIN)     05 February 2013

Model Standing Orders are enclosed again.

These and IESO Act can be accessed thru GOOGLE, and at Dept. of Labor website of the state as well.

"windup petition"

Probably the lawyer is contemplating to approach the company as Debtor.

(Winding up is a means of dissolving a company. In that event, its assets are realized and applied in payment of its debts, and after satisfaction of its debts, the balance, if any, is paid back to the members in proportion to the contribution made by them to the company.
According to Section 425 of the Indian Companies Act, 1956, the winding up of a company can be done by the Tribunal or can be wound up voluntarily.
Section 433(e) of Indian Companies Act, 1956 deals with the tools available to the creditors where the company is unable to pay its debts. The creditors in that case can approach the court of law to get the company wound up in order to recover its debt.}

 

Another thread with similar advice is at LCI at the following link:

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

 

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

 

Kindly go thru the observation of HC Bombay:

Bombay High Court

Balaram Abaji Patil vs Ragojiwalla (M.C.)

“Therefore 'wages' does not merely mean remuneration payable by the employer under the terms of the contract, express or implied; it includes any amount which the employer legally becomes liable to pay to the employee on fulfilment of the contract.

23:

In the case before us, once the employee has performed his part of the contract, the minimum wages due to him are, in our opinion, a debt due from the employer.

 


Attached File : 1040154509 unpaid wages is debt on employer balaram abaji patil vs ragojiwalla (m.c.) on 22 march, 1960.pdf, 1040154509 model%20standing%20orders.doc downloaded: 146 times

Biju Nair (office manager)     05 February 2013

Dear Kumar sir

Thank you for your response. However i have send legal Notice just saying December salary is not released and narating the incedents. I have send this By registered AD, courier, email. They have received it yesterday and Today they have released my full and final settlement.

Thank you for all your support.

Keep this good work going on. Thanking you once again

Biju Nair

Kumar Doab (FIN)     05 February 2013

It is good that sense has prevailed upon good offices of the company and it has released your dues.

If company has disbursed FNF dues without FNF statement or if  FNF statement is not correct or if it does not include any amount including salary for January or Gratuity payment or any other amounts e.g. paid/earned leave, incentive, reimbursements etc… days you may write back ( it is important) to supply the correct FNF statement and mention that FNF statement is not correct and FNF payment sent by company is received under protest.

Most likely you shall get everything.

Kindly confirm if your lawyer has sent the “Winding Up” notice or a notice to pay FNF dues. It shall help many fellow citizens/employees who visit the forum.

Wish you all the very best in your future Endeavour’s.

Biju Nair (office manager)     06 February 2013

Sir

We have not send "winding up petition" notice that could be second stage. Primarily My advocate asked me to send the letters asking for the reason for non payment of dues? I send letters and emails stating December Salary not paid and my full and final settlement is not realeased so far(that is till february). In the letter i have also mentioned they are not responding to my phone call, not kept verbal commitment of "paying the dues in a week time" etc. 

My colleagues informed me, they have prepared the F&F in January itself and  the directors not signed the cheques. Thats why i was looking for Legal Help.

Sir below is the email and notice send

 

 

This is with subject Matter of Full and Final Settlement. Since I have resigned from wenglor sensoric India on 9th January 2013

After completing required 30days notice period and handed over required details to you since Manasi Desai was not present on the date. Even though you provided me with employment certificate  and relieving letter on 10th January when you asked to meet for some clarification, I  have not yet received my December 2012 Salary and Full and Final Settlement. As per your verbal commitment this is to be released after a week since Sebastian Roth visiting India. When I have not received the settlement I have spoken to you on Phone on 23rd January 2013 and again you told will release this on 2days time.Which never happened!

Then I tried to reach you on your mobile on 29th January and after that you never picked up my call.  

I want to know why my December Month Salary and Full and Final Settlement is not paid till date?

 

Biju Nair

 

 


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