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mehul (Head - Sales and Marketing)     25 April 2013

Employer not paying salary after termination

Dear Sir.

I am from Mumbai and have been working with a company which publishes monthly magazine. I was working in the capacity of Head - Sales and Marketing. Since last few months the director of the company has not been paying the salary of the employees on time. My director operates from home and I look after the entire office work right from sales, marketing, payroll etc

Since I was the only employee who had direct access with the director, I had to fight with him for my salary as well as the salary of the other office employees. On 21st March, the director issued me a termination mail with a notice period of 1 month as per the appointment letter. The reason for the termination was not mentioned in his mail.

I served my notice period relegiously as per the rules of the company. My director did not pay me the salary of March 2013 and informed that he would pay me the entire salary during my final settlement (This communication was verbal over phone).

Now the director is not responding to my phone calls and my email since last 2 weeks. Also, I had sent him several reminder mails to issue me my salary certificate as well as releiving letter which I havent got yet.

As I am not having the relevant documents required for me to join any other company, I have already lost 1 job offer as I did not have the necessary papers as a proof of my employment.

As my director does not come to office, it is very difficult to trace him and contact him.

What can be the solution for this? The company is a proprietorship firm....

Please advise.

Regards,

Mehul M

 

 

 

 



 1 Replies

Kumar Doab (FIN)     28 April 2013

 

 

There are threads at LCI initiated by employees/employers showing employees have lodged police complaints under Sec 406, 420 and pulled employers to police stations, and that employees united and published reports in media.

 

All employees may unite and be witness to each other and lodge complaints with Labor Inspector in o/o Labor Commissioner, Wages Inspector under Payment of Wages Act, Inspector under Shops and commercial Establishments act………These enactment have clauses and provisions on unpaid wages……….

 

 

The Shops and commercial Establishments act is applicable to all employees and does not indiscriminate between workman and non workman.

One of the duties of Inspector is to ensure that in dispensing with the services of an employee the provision of the Act and Rules have  been  complied  with  and  no  dues  payable  under  the  Act  or  Rules  have  been withheld

Designation alone does not decide employee is a workman or not.

Your lawyer may ask you a set of structured questions and may opine that you and other employees fall within the category of workman.

 

 

------Bombay Shops and commercial Establishments act is so employee friendly.

 

Bombay Shops and Commercial Establishments Act  is so employee friendly, that it can effectively cover your issues.

 

 

38. Application and amendment of the Payment of Wages Act. (l)Notwithstanding anything contained in the Payment of Wages

Act,  1936, (V  ?f

1936)………. the Inspector appointed under this Act shall be deemed to be the Inspector…herein referred to as "the said Act",…….for the purpose of the enforcement of hei provisions of the said Act within the local limits of his jurisdiction.

( Implies that the Inspector under SE Act shall be the Wages Inspector )

[?8 ?. Application of Act VIII of 1923 to employees of establishment.-The provisions of the Workmen's Compensation Act,  1923  (VIII  of  1923),  and the rules  made from time to time thereunder, shall,  mutatis mutandis,  apply to employees  of  an establishment to  which this Act applies, as if they were workmen within t! meaning of the Workmen's Compensation Act, 1923.

( Implies any employee under SE Act shall be eligible as if he is a workman and can invoke WC Act)

^[??-?.  Application of Industrial Employment (Standing Orders) Act to establishments.-The  provisions of the Industrial Employment (Standing Orders) Act,  1946,  in its application to the State of Maharashtra [(hereinafter in this section referred to as "the said Act"), and the rules and standing orders (including model standing orders) made thereunder from time to time, shall,  mutatis rnuimdis,  apply to  all establishments wherein fifty or more employees are employed and to which this Act applies, as if they were industrial establishment within the meaning of the said Act.

(Implies if company is under SE Act and if it has not framed its standing orders the model standing orders shall apply to all employees. Model Standing Orders are attached. You can also download from Dept. of Labor Maharashtra/Bombay website also. Thus while you can approach Inspector under SE Act you should also be eligible to approach Labor Inspector/ALC.)

{ Model Standing Orders: 3.               Tickets,  11.         Payment of wages,  13.       Termination of employment,  15.      Complaints, 17.  Liability of 17[employer].--, 18.          Exhibition of standing orders.-)

51.    Employer [and manager  to produce registers, records etc.  for inspection.

( Implies that if you lodge a complaint the Inspector can not check all records, your personnel file but can take these to his office. You may obtain certified copies and even peruse RTI route.)

Moreover the Inspector is under obligation report every two months as given in Sec.66

55.    False entries by employer and manager.

58.    Determination of employer for the purpose of this  Act.

66. Notice    of termination of service

The Inspector has to submit the report on complaints every two months.

Refer to duties of Inspector at:

https://www.mcgm.gov.in/irj/go/km/docs/documents/MCGM%20Department%20List/Chief%20Inspector%20Shop%20%26%20Establishment/RTI%20Manuals/ChiefInspectorShopEstablishment_RTI_E03.pdf

 

 

 

 

-------------Model Standing Orders:

 

11.    Payment of wages.—

 

13.Termination of employment;

 

(3)   Where the employment of any workmen is terminated, the wages earned by him and other dues, if any, shall be paid before the expiry of the second working day from the day on which his employment is terminated.

 

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

 

18.   Exhibition of standing orders

 

All employees should join hands and approach a competent and experienced labor consultant/service lawyer jointly and proceed under expert advice of your lawyer.

 

 

 

 

-----You may go thru Payment of Wages Act;

(Applicable to all employees drawing wages as per def. of wages in the Act up to Rs.180000/pm)

 

Does this company supply pay slip? Employer should and get it signed by employee and maintain record for 3 years.

 

13A. Maintenance of registers and records.

5*[13A. Maintenance of registers and records.-(1) Every employer

shall maintain such registers and records giving such particulars of

persons employed by him, the work performed by them, the wages paid to them, the deductions made from their wages, the receipts given by them and such other particulars and in such form as may be prescribed.

(2) Every register and record required to be maintained under this section shall, for the purposes of this Act, be preserved for a period of three years after the date of the last entry made therein.]

 

5. Time of payment of wages.-

6. Wages to be paid in current coin or currency notes.- All wages shall be paid in current coin or currency notes or in both:

5*[Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.]

15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.

16. Single application in respect of claims from unpaid group.

 

------The unpaid wages may be treated as debt on employer.

You may go thru following thread;

Discussion > Labour & Service Law > Disputes > Delay in full and final settlement payment

At:

https://www.lawyersclubindia.com/forum/details.asp?mod_id=72011&offset=1#.UNRXofLZ1JI

--------The employees have the option to approach the Trade Unions also.

 

Valuable advice of learned experts/members is sought.

 


Attached File : 519774302 the bombay shops establishments act.pdf downloaded: 228 times

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