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Gaurav96K  (N/A)     20 May 2014

Payment in lieu of notice

Dear All,

I am working with a private limited company from last 1 year.After joining i was on probation period for 6 months and after that i confirmed in an organization.

The company which i am working with is facing so many financial losses due to some unknown reason and the impact of the same is on employees.Salaries are done once in 3 months,traveling expenses was also credited once in 3-4 months,company didn't even paid PF from last 2 years.And because of this so many employees are quieting the job,i am also one person in it.

Now the issue i am facing is of Notice Period.As per terms & conditions stated in a my appointment letter,it is said that 2 months of notice period shall given from each side in case of relieving the job but there is no clause of "payment in lieu of notice" if you haven't serve the said notice.But as i have said recently that salaries are not done regularly,it is very very difficult to maintain office & household expenses.So that's why i declared to them that i am not agreeable to give 2 months notice and if i have, i need to work without pay for next 4 months and which is not acceptable for me and because of this i clearly mentioned to reinstate my last two months salary as a payment in lieu of notice period but they are not agreeable on this.

From the above information i would like to highlight the key points as follows:

1.Is this correct that to give payment in lieu of notice if it is not mentioned in appointment letter and get officially relieved?

2.Should i face any problems in future if i don't have relieving & experience letter from previous employer?

3.Shall we take legal actions against company from this perspective of problem?

Need your guidance on this.I Appreciate Your Help.

Thanks,

Gaurav



Learning

 5 Replies

DEEPAK PRATAP SINGH (LLB,ACS)     20 May 2014

Dear Friend,

Sorry to here that your company is not paying or paying late for services provided by  its employees. But regarding Notice Period and as mentioned in our Appointment Letter, you have to give a notice of two months to your employer before quitting the job.

It is not necessary to mention payment in lieu of Notice in notice period. But it is presumed that the payment of Notice Period will be included in the condition.

So you have to give two months notice to your company or you can  give up your two months salary if remaining. Talk to your HR people.

Regards'

CS Deepak P. Singh

1 Like

Gaurav96K  (N/A)     20 May 2014

@Pranit:

Thank you for the information it will definitely useful for me.But currently i'm seeking overall review from others perspective.Thanks again for the quick reply.

@ Deepak Pratap Singh

Appreciate your help.Even after communicated HR dept about reinstate salary against 2 months notice period but company is rejecting the approval without any reason.so now can i take legal action against this? Thank you once again.

Kumar Doab (FIN)     21 May 2014

 

Employee should not work for a day if earned wages are not paid on the pay day.

Employee can lodge a complaint the moment payment of his earned wages is delayed even by a day.

 

You may rather clearly decline to tender any notice period or notice pay in lieu of it.       

You may claim that this clause has lost its sanctity due to breach of contract by employer by non payment of earned wages, non reimbursement of entitled expenses,non payment of statutory dues like PF, etc……………..

The employer can be fined by authorities for non payment of wages on time say Rs7500/instance, PF, ESIC,TDS ..................

The HR, employer shall resist because they want to square off the dues with notice pay.

Negotiate and you should succeed.

 

What is this company/establishment registered as: Commercial, Industrial, Small Enterprise?

 

 

 

It should have displayed its registration Certificate at a conspicuous place e.g near entrance/on notice board!

 

How many employees are employed in it?           

 

What was your designation in offer letter, appointment letter and nature of duties?

 

Are you a member of employee's unions , trade unions?

 

 

 

This info shall help hence post it. 


1 Like

Gaurav96K  (N/A)     21 May 2014

Thanks a ton Kumar Doab Sir for your valuable information.It will definitely helpful for me at the time of my final decision.Thanks again.Your required details are as follows:


1.What is this company/establishment registered as: Commercial, Industrial, Small Enterprise?

After digging deep into company's information i came to conclusion that it is neither registered as commercial nor industrial or small enterprise.The only information i get is it is registered through "Company Act  1956" as per mentioned in MOA & AOA.

 

2.How many employees are employed in it?


At the time of joining i.e before 1 year there are total 100+ employees but recently 50+ employees left the company.Now total is near about 40 to 50

 

3.What was your designation in offer letter, appointment letter and nature of duties?

My designation is Network Security Engineer as per mentioned in offer,appointment letter.And my nature of duties are providing network,security support to customers,planning & implementation of new network design wherever applicable.Also visit customers place in case of critical network failure.

 

4.Are you a member of employee's unions , trade unions?

 

No

 

 

Some other information about company:

 

Established in 1994-96

Is in a IT services like System Integration,Network Integration,Solution Provider

Has total branches of 8 (At the time of joining but now its 5) all over india but not outside india

Is a ISO 9001:2008 certified.

 

Please let me know if you need any additional information in this regard.

 

Thank you once again for your time and consideration.

Kumar Doab (FIN)     22 May 2014

 The IT/ITeS companies in are covered by (Name of the state) Shops and Commercial Establishments Act, and Standing Orders (Certified/Model), and various other enactments.

The standing orders shall continue to apply even if the number of employees has reduced from 100+ or 50+ as per labor laws applicable in your state…………

  

>>> The notice period/pay that is part of service conditions is NOT dependant upon the T&C inserted by employer in appointment letter drafted by employer, alone!

The service conditions are stated in and governed by Standing Orders applicable to the establishment (Certified/Model) and extended to the designation of employee, ( Name of the State) Shops and Commercial Establishments Act…………….and various enactments applicable to the establishment.

The notice period of 60 days may not be necessarily applicable in your case.
THERE ARE MANY THREADS ON SIMILAR QUERIES THAT YOU MAY FIND RELEVANT AND YOU CAN DOWNLOAD JUDGMENTS BY SUPREME COURT AND FULL BENCH THAT AWARDS FINALITY TO THE MATTER………………. E.G.:

 

https://www.lawyersclubindia.com/forum/Whether-notice-period-has-to-be-given-during-probation-91808.asp#.UwDFP0eBmXU


{---- Neither Agreement nor and appointment letter can override the standing orders. }

https://www.lawyersclubindia.com/forum/details.asp?mod_id=85821&offset=1#.Uf4_JNKAqWM


https://www.lawyersclubindia.com/forum/Notice-period-102337.asp#.U3t7pkeBmXV



https://www.lawyersclubindia.com/experts/Joining-without-relieving-letter-from-previous-company-472656.asp#.U3t4bkeBmXU

 

 

https://www.lawyersclubindia.com/forum/Notice-period-102337.asp#.U3dUvUeBmXU

 

https://www.lawyersclubindia.com/forum/Salary-issue-102041.asp#.U3dVbEeBmXU 

 

 

https://www.lawyersclubindia.com/experts/Not-service-3-months-notice-period-in-a-pvt-ltd-company-473341.asp#.U32rL0eBmXV

 

https://www.lawyersclubindia.com/forum/Co-not-agree-for-full-final-settlement-with-gratuity-102541.asp#.U32lwkeBmXU

                                                                       

 

https://www.lawyersclubindia.com/forum/Regarding-experience-certificate-102481.asp#.U32tv0eBmXU

 

 

 

You should be able to get enough material from these threads to decide your future course of action.

 

 

It is strongly recommended that you should approach a competent and experiment labor consultant/service lawyer at your location and spend quality time with your lawyer and proceed further under expert guidance of your lawyer.

 

>>>Designation alone does not decide that employee shall be covered as ‘Workman’ as in ID Act, ‘Employee’ as in Shops and Commercial Establishments Act .

Your Labor Consultant/service lawyer may ask you a set of structured questions and may opine that you are covered, and that you can raise a dispute NOW. 

 

>>> Payment of Wages Act 1936: Sec13A : Salary slip record should be maintained for min.3years.

 

      

>>> >>> The IT/ITeS sector has formed unions for female employees, all employees and trade unions are willing to embrace employees from your trade.

                                                                                                      

 

https://www.itecentre.co.in/

https://ithiworld.wikispaces.com/News+Update

IT/BPO Voice of India | Facebook

UNITES Professionals

www.unitespro.org

https://www.wbitsa.org/

www.itpfindia.org/

https://itnitesunion.wordpress.com/author/itnitesunion/

 

 

Shiv Mahiti Ani Tantradyan Sena(Shiv IT SENA)

mankar.janardan@gmail.com


https://www.shivsena.org

 

 

 

https://www.amrc.org.hk/node/1088         CBPOP

https://www.freepatentsonline.com/article/Indian-Journal-Industrial-Relations/185430721.html

https://bpo.knowledgehills.com/Directory/BPO-Jobs/CBPOP-Centre-for-BPO-Professionals.aspx

 

 

https://www.dnaindia.com/mumbai/report-shiv-sena-forms-first-union-in-information-technology-sector-1465435

Shiv Sena forms first union in information technology sector

 

Trade Unions like CITU,INTUC,AITUC,BMS………….are more than willing to embrace the IT employees.

 

United employees can rake up any issue with Govt. Employee’s is a big community and huge vote bank that NO party/Govt can ignore.

 The unions can help to form 'Works Committee' in company. It is an authority under ID Act.The Chairman is from employees/employer on rotation and committee has equal number of members from employees.

The Industrial Disputes Act, 1947: CHAPTER II: AUTHORITIES UNDER THIS ACT

3. Works Committee

The unions can negotiate service conditions and standing orders shall be certified only after parleys with employees representatives/unions.

 

For the present issues, exploitation that employees in IT/ITeS/BPO/KPO sector's face Pan India the employees unions affilliated with Trade Unions is immediate need of hour and is also a perfect solution.

 

Are you aware that employers in your trade have formed their unions?

Then why don't employees unite?

 

 

 

Unions are very active and strong and formidable.

 

 

 

 

 

 

 

                                                                   

 

 

 

 

 

 

   


Attached File : 737085026 works committe is authority under id act.pdf, 737085026 works committe is authority under id act.pdf downloaded: 155 times

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