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Someshwar Shinde (Regional Business MAnager)     08 January 2013

Discontinuation from services without notice & non-payment

Dear Lawyers,

          I am working in a pharmaceutical company named as SH Pharmaceuticals Ltd. I am working as Regional Business Manager at Pune HQ. The Head office of company is at Hyderabad.

        I am working in company since Dec-2011. I am a confirmed employee of the company. From last 6 months we are not getting salary & expense reembursement in time.

        On 26 Dec-2012 I received a call from HR Head & he informed me about closing down of Pune Region. He informed me to stop working. Company has not given any notice to me nor any written communication to me.

         Company had not paid Salary of Nov-2012, Dec-2012. Also Expense reembursement of Oct-2012, Nov-2012, Dec-2012 is due. Also as per appointment letter atleast one month notice is requied from either side before leaving/ before removing from company. or else one month advance salary has to pay by company.

       Company has sent official letters to all Area Business Managers & Customer Development officers who were reporting to me about discontinuation of their services that also without any notice.

       On 26 Dec HR head informed me that company will deposit Nov-2012 Salary & Oct-2012 expense reembursement on 1-Jan-2013 & rest all dues will be setteld by company before 15-Jan-2013. But till date I have not received any salary or expense. I have sent 4 to 5 written communication to company on mail, to which HR manager has replied that he is preparing full & final settlement letter which he will send to me within 4 days, then I have to sign it & send to company & then company will do final settlement.

          Already company has sent salary slip of Nov-2012 & expense reembursement slip of Oct-2012 to me but not paid it.

      Now, in this situation pls let me know what can I do? Can I take legal action against company or shall I wait? If yes then  under which act can file a complaint against company? & what is the procedure to do same?

I will be very much olliged to you if anybody of you help out me in this by giving me information.

 

Thank you,

Regards.

Someshwar.



Learning

 2 Replies

ADVOCATE Prem Joshi (Advocate/ Legal Consultant)     08 January 2013

approach to local labour court & filed the a complaint against the company.

Kumar Doab (FIN)     08 January 2013

Mr. Joshi has given valuable advice.Kindly follow it.

Has the company sent a notice to you also to stop working? Have you submitted the minutes of discussion to company that Mr/Ms…..designation… dept…..address…called you on dated…..from phone number… at your phone number ….and asked you to stop working? These shall be an imp. communications on record.

The action of the company can be termed lay off/retrenchment.

It is felt that the Area/Regional Managers of the pharma companies perform duties same as that of medical representatives and they have independent targets, visual aids, promotion materials, samples, an some times independent list of doctors they have to cover, and may have to cover vacant HQ etc an it is felt that in some cases they have agitated in labor courts.

The unions like FMRAI may of some help to you.

Pune is a big city and you can access competent and experienced labor consultants/service lawye

Service conditions are expressed in appointment letter, standing orders. You may also obtain HR policy, service rule book, severance policy etc….

You and all who have been laid off/retrenched may succeed to claim the compensation for lay off period. As company has closed its operation it has to tender at least the notice pay as in appointment letter/standing orders.

 

You are entitled to get the salary for all days you have worked for the company and reimbursement of field expenses.

You need to have the evidence of attendance marked and period worked.

Company needs to record correct period of service and relieve you as per correct period and dates of service.

The onus of supplying the communication of closure of operation lies on company.

The HR has not supplied you the expense reimbursement slip of Dec12 and salary slip of Dec12.You may supply the list of payables by company to you and demand the pending salary and expense reimbursement slips.

 

Do not sign the acceptance of the FNF statement and rather decline to accept it citing the errors if it is not correct.

If the HR executive does not remove the confusion you may submit a representation addressed to good offices of appointing authority, MD, Chairman, Company secretary narrating the lapse at the end of HR and highlight the period and dates you have been made to work and balance wages still to be paid to you, and demand payment, correct FNF statement, correct last salary slip, form 16 as per correct FNF statement, work experience/service certificate, relieving letter as per correct period of service, PF a/c slips as per correct period of service, by redg. post so as to reach you in say……7days.

Your company might be covered under SE Act. may look into SE Act applicable to your state.

e.g. SE Act Delhi:

21. CLAIMS RELATING TO WAGES

33. RECORDS.

.41. WILFULLY MAKING FALSE ENTRIES.

 

THE PAYMENT OF WAGES ACT, 1936

3. Responsibility for payment of wages.

5.

Time of payment of wages.

 

7.Deductions which may be made from wages.

 

SCHEDULE I

[1][MODEL STANDING ORDERS

11.                Payment of wages

13.          Termination of employment

16.  Certificate on termination of service.--Every permanent  workman shall be entitled to a service certificate at the time of his dismissal, discharge or retirement from service.

 

NOTE. - There is a provision under  this  Act for issuing a service certificate at the time of  dismissal, discharge or retirement and every person is entitled to take such certificate.

 

17.  Liability of 17[employer].--The [2][employer] of the establishment shall personally be held responsible for the proper and faithful observance of the standing orders.

 

 

If the good offices also do not provide any relief you may approach a competent and experienced labor consultant/service lawyer with copies of all documents and record and you lawyer may ask you a set of structured questions and opine that you fall within the category of workman. Designation alone does not decide employee is a workman or not.

In a given situation employee can invoke the provisions of SE Act, IESO Act, ID Act, Payment of wages Act… etc as per explanation of employee under these enactments.

The company may yield to legal notice of your lawyer or demand notice thru conciliation officer, Inspector under SE Act, Wages Inspector or  you may have to approach civil court.

You may proceed under expert advice of your lawyer and as deemed fit at your end.

Valuable advice of learned experts/members is sought.




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