Delay in payment of wages to employees
Arunav
(Querist) 15 October 2015
This query is : Resolved
Background:
A company which is public listed company employs more than 1000 employees on the rolls.
Query ;
a. What all laws it violates in case it fails to pay the salary on time. e.g. two months or four months delay.
b.what all statutory provisions is violated by the company in case it fails to clears all the dues of the employees at the time of resignation and thereafter
Kumar Doab
(Expert) 15 October 2015
The employer that does not pay earned wages/promised emoluments etc on fixed day/date is unworthy of being employed with.
The employee that continues in conditions narrated by you subjects him/herself to uncalled for situations and risks............
It is always better to leave such unscrupulous employers...............ASAP
Is employer supplying salary slips and paying statutory dues e.g; TDS,PF,ESIC.........................and Group Insurance...................monthly contribution for Gratuity etc...........?
Is employer paying borrowings from FI's, secured creditors?
First of all determine what is this establishment/Div-Dept where employee is working............ registered and covered as: Commercial/Industrial?
Also determine the person is covered by the def. of 'Employee' as in State Shops & Estbs Act.....................'Workman' as in ID Act..................or as under Min.Wages Act etc............... Payment of Wages Act etc......
Also look into standing orders (certified/model) ....................and letter/contract of appointment,clauses on payment of wages,incentives/reimbursments etc,service rules and regulation/HR policy etc mentioned in appointment letter,employee handbook /any other rule/policy etc..............
The payment of wages/emoluments etc is promised amount and non or delayed payment is breach of trust as well...............and employee can lodge complaint the moment payment is delayed even if by a day and employer can be penalized per instance as provided for in various enactments applicable to employer/establishment/employee...........
Unpaid wages/emoluments is debt on employer and employees are known to file complaints u/s 406,420.................winding up petitions............
If there are employee's unions/IC/Guild/Works Committee.....................Trade Unions it is better to take up with employer and extract all pending dues before it is too late and firm up next venture.
You must be aware of Kingfisher episode.
The question arises why the employer is not paying?
Is it in manageable situation?
If yes and even if not the employee should determine whether he/she wants to take the calculated risk or not?
Kumar Doab
(Expert) 15 October 2015
If the salary is not being processed then statutory dues might also not be paid e.g PF,ESIC,TDS etc..................
The Inspectors appointed under various enactments have a duty to ensure that monthly/promises amounts are paid on time................
Rajendra K Goyal
(Expert) 16 October 2015
Agree with the advice from expert Kumar Doab.
