Nonpayment of salary and threat of legal action by the employer
krishna
(Querist) 17 November 2011
This query is : Resolved
hello sirs.
This case pertains to a close friend of mine staying with me in U.S.
He was appointed by an Indian company for the formation of its subsidiary in USA and to head that office. He made frequent visits to U.S. for the purpose, formed the office with help from his sister who is a US clitizen ,with permission from the Chairman of the Indian company . He was transferred to the US subsidiary and also obtained green card through the company. After running the US subsidiary for six years, out of the bloom, he was transferred to India, which he was unable to comply with due to family reasons and his daughters studying in college. He was asked to resign and he compiled and his resignation was accepted with three month's notice period and with effect from 16th August 2011.
Pay and allowances for the notice period, bonuses due were also promised by that date on handing over and for lengthy form as sent for the purpose and he was asked not to go to the office from 1`st of sept 2011.
A representative , who was supposed to take over, was sent from India to supervise the handing over.
The HO/TO from was completed, signed by both the parties and pending issues clarified by about 27th Aug,
But on 29th aug. , certain accounts issues were raised, containing two long list of discrepancies. These were explained with no further feed back, Incidentally, the accounts of this subsidiary branch were taken over two years back, the services of an accountant here being refused.
From about the middle of sept., issues are raised one by one, one relating to accounts, getting confirmation of b balances from creditors and debtors, (the specifics not forthcoming from accounts despite repeated requests) the other two being two operations ,that had developed some minor problems , which on no account are the result of failings of the US office. Many communications are there in respect of these two from then US office till date. These can be fully explained , if asked for.
He was asked to provide a personal indemnity bond for the above two which he refused.
Now the company has relieved him w.e.f.15th Nov. (end of notice period) with a threat of legal action soon. Notice period pay from 15th Aug, to 30th sept. 2011 has been paid here, but from 1st oct. to 15th Nov.2011 and bonuses due are withheld since indemnity bond has not been furnished.
If a case is filed , can it be from the parent company from India , in India or the U.S.Subsidiary in US.
If it is in India how can he attend being here in USA?
I would be personally be grateful for any advice'
thanks
Krishna
Guest
(Expert) 17 November 2011
Dear Krishna,
Several things would require to be clarified, whether all the incidents/instructions, responses, etc., have recorded proof or have been taking place merely on verbal interactions.
The case seems to be taking a serious turn, documentary evidence, including terms of appointment/service agreement, etc., would also need be referred before some tangible advice can be given. In case of any reservation/hesitation, you may, if you like, can provide details/ clarifications through PM or email [dcgroup1962@gmail.com].
However, if the company decides to file a case, its HQ being in India, it would file case in an Indian Court where its HQ is situated. However, the terms of appointment/ service agreement, etc., would be needed to express a firm opinion. But before any case is launched by the company, your friend must get proper consultancy from some expert in service laws.
Rajeev Kumar
(Expert) 17 November 2011
Mr.Dhingra has replied well
krishna
(Querist) 17 November 2011
Respected Mr, Dhingra,
Many thanks for your reply. Kindly await email from me.
Dear Mr.Rajeev kumar,
I fully agree
krishna
