Termination of services without due notice
V.Krishnamoorthy
(Querist) 12 May 2014
This query is : Resolved
A is employed by B on permanent basis after completion of trial. Appointment letter clearly states one month notice or one month salary in lieu of notice on either side. Within three months A was asked to leave the job by giving the previous month salary. Now A is due for one month notice pay, bonus amount deducted from his salary, provident fund deducted, professional tax (A is a senior citizen above 65 years of age). Now what is the remedies left to A to recover his dues. Is there any forum which could dispose of this case immediately? If not which is the court of jurisdiction? Will some one could advise?
ajay sethi
(Expert) 12 May 2014
issue legal notice for recovery of salary dues under the contract . if company fails to pay file winding up petition against the company
Sankaranarayanan
(Expert) 12 May 2014
Send the legal notice to company , if they not turned then file a case before the Labour court
Rajendra K Goyal
(Expert) 12 May 2014
Send legal notice demanding your dues. If no positive response file case.
Kumar Doab
(Expert) 12 May 2014
You have indicated that the relationship is that of employer-employee.
How was A asked to leave by B::: by termination order or verbally or by resignation?
If verbally A should place termination on record in writing.
If the Bonus mentioned is Statutory Bonus as per payment of Bonus Act then it can’t be deducted in advance from wages. Bonus be it performance, customary, loyalty can’t be deducted from wages.
NO deduction other than permitted by law/allowed as in Payment of Wages Act, Shops and Commercial Establishment Act, ………………………………………dul agreed by agreement between employer-employee can be made from wages. Proper record of deductions has to be maintained in registers.
What is this establishment; Commercial, Industrial, Small Enterprise?
The company might have displayed its registration certificate near entrance and you can find out from the certificate easily!
What is its line of business e.g; IT/ITeS, Banking, Insurance, publishing, engineering etc?
What was designation and nature of duties.
How many employees are employed in it?
V.Krishnamoorthy
(Querist) 12 May 2014
Thanks for immediate response. After successful completion of trials, A also informed the MD of B that the reason for A's leaving the previous employment was due to the distance of his work place and transport difficulties, he was doing well with them and therefore if he (B)found A's performances were not up to his expectation, he (the MD) may inform A so that he could go back and continue his services with his previous employer. The MD assured A that there would not be any occasion to ask A to leave the job. However before completion of three months A was asked to leave the services verbally. B is a small scale industry, manufacturing and installing chlorination plants. A was working as PA to MD in the factory attached office. A's nature of duties was giving secretarial assistance to MD, besides liaison and co-ordination with the internal sections and factory. A claims a total of Rs. 37249/-. Can A also claim for damage and compensation, since he had left the previous employer, in good faith, with whom he was working for a long time. Since the amount being claimed by A is not so much, he cannot afford lawyer fees. Kindly advise. Where he should file the winding up petition, in the Labour Court? Kindly advise.
Advocate. Arunagiri
(Expert) 12 May 2014
You can go for winding up of the company, only if the company is not able to pay a debt more than Rs.500/-. Winding up involves a various cumbersome procedures.
So, I suggest you to file a petition before the labour Conciliation officer. He will send summons to the company and will do the needful for the amicable settlement as per the labour law.
Kumar Doab
(Expert) 12 May 2014
If verbally A should place termination on record in writing even if by minutes of discussion and avoid any chance of foul play e.g. abstainment,abscondment,absentism etc.
The attached office may fall within purview of (Name of the state) Shops and Commercial Establishments Act.
If employer defaults on wages then it might have defaulted on PF,ESIC, TDS, Contribution for insurance, etc too………………………….
Employee can approach:
>>>Inspector under Payment of Wages Act; Applicable to all employees drawing wages up to Rs.18000/pm as per def. of wages in the act……………………………….within 1 year.
Salary slip to all employees duly signed by both employer and employee should be issued. Demand salary slip(s) of all months.
You may refer to: Payment of Wages Act; Sec: 2: 3*[(i), (ia), 3*[(vi), 3, 4 ,5, 13a, 14, 15, 16, 17A, 20………….. and if the Inspector agrees to cover you may immediately submit requisite Form for recovery of wages.
>>>Inspector under –( name of your state) Shops and Commercial Establishments Act,
One of the duties of the Inspector is to ensure that wages are paid on time.
>>> O/o Labor Commissioner;
The Labor Inspector might also be officiating as Inspector under Payment of Wages Act, Inspector under U.P. Shops and Commercial Establishments Act, Small Enterprise Act…………………………..however you may lodge complaints mentioning the enactments separately.
----Employees Unions e. They may help you.
--- Trade Unions.
----RPFC thru nearest PF office.
Does the company supply PF number, PF a/c slips for each year/or E Passbook? It has to.
----ESTC Inspector in jurisdictional ESTC office………….
(Applicable to all employees drawing wages up to Rs.15000/pm as per def. of wages in the ESI Act)
--- Form16: --ITO-TDS where you file ITR and jurisdictional CIT-TDS where you company files ITR. Non issuance of Form16 by deductor (employer in your case) is offence and employer can be penalized.
----Lawyer/Law firm
---Civil Court
Employees have been contemplating to file criminal complaints u/s 406, 420……………………………and to approach employer as creditors treating unpaid wages as debt on employer e.g;
http://www.lawyersclubindia.com/forum/details.asp?mod_id=72011&offset=1#.UvYBGEeBmXV
http://www.lawyersclubindia.com/forum/Full-n-final-settlement-100310.asp#.U0AEW0eBmXU
--ITO-TDS where you file ITR and jurisdictional CIT-TDS where you company files ITR. Non issuance of Form16 by deductor(employer in your case) is offence and employer can be penalized.
Persue the case in labor office under the guidance of your labor consultant/service lawyer.
The concilliation officer may grant 3 opportunities and after say 1 month may refer the matter to labor Court. It would again be lengthy matter if it is state labor court that are burdenend to tne brim.
V.Krishnamoorthy
(Querist) 13 May 2014
A has already issued a Registered Letter to B claiming his dues, subsequent to the verbal termination of his services by B. Thus he has placed the verbal termination on record. A's salary was Rs. 30,000 PM. Therefore he can not go to the Inspector under payment of wages Act. A understands that he can either approach a Conciliatory authority or the labour court. He may be advised on an appropriate conciliatory authority or court. If the best option left is to file a case in Labour Court what will be the legal expenses. Also advise whether we can recover the cost (legal expenses) from B.
V.Krishnamoorthy
(Querist) 30 May 2014
Subsequent to the Registered letter dated 7th May, 2014, B sent an e-mail to A on subject "Resignation" and asking him to meet the MD of B. A replied this mail stating that he had not submitted any resignation and therefore asked B to correct the subject of the e-mail. Then B sent another e-mail to A on the subject "Settlement of Account" asking him to see the MD of B on 22/05/2014. A went to see the MD on 22/05/2014. The MD confined A in his cabin with the help of his men. A was pinned to a seat by the MD's men. The MD started abusing A throwing shoes on him and hitting him. MD forced A to sign a pre-dated notice of termination. A wrote on the predated letter "Received on 22.5.2014" and signed. MD snatched the letter, ovewrote the date and kept it with him. MD then forced A to withdraw his letter dated 7.5.2014 by writing on the same if he was keen to settle the account. Under duress situation, A wrote that on the assuance of MD that he would settle the account he withdrew his letter. B did not settle the account but warned A of dire consequences if A dared to complain about the incident either to Police or any other authority. MD took photograph of A with the help of his mobile phone. He also advised his son to take some close-ups of A. A was completely terrorised and he did not report the matter to the police immediately as the MD's men were following him to some distance. But after two days he reported to Police requesting them to register an FIR. Now what are all the options opened to A?Can he file criminal and civil (damage) suits against MD besides taking up the matter with the Labour commission for recovering his dues?
V.Krishnamoorthy
(Querist) 17 June 2014
Kindly some experts answer my query posted 17 days ago.
