LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Subrata Mukherjee (Proprietor)     24 April 2013

Employer not paying the settlement and salary

 

I am an ex employee of a Pvt Ltd Company based at Pune, Maharashtra. I was the Manager for the Site at Rajkot, Gujarat had submitted my one month's notice period (as per appointment letter aggrement) on 10th Jan, 2013. I was expecting some one to join in this due course but the company never send anyone.  I handed over his responsibilities, company assets to his superior (collect his acceptance). I was asked verbally on 9th Feb,2013 to keep continuing for 4-5 days but because of my prior committments, I denied. Upon my denial, the higher officials warned me that if I leave, they would screw my happiness. Due to urgency of my committments I left the company on the scheduled date, i.e., 11th Feb,2013. 

My first question is "did I made any mistake?"

I have been following up for my Jan-13's salary + the 10 days salary pertaining to Feb-13, my full and final settlement that includes Leave, Bonus, LTA. The Company has not submitted my PF papers as on date.

Initially, the HR department assured to pay the amount in mid Mar-13- not paid, now the department is not taking my calls too. There are many employees like me who are having the same problem. I currently am out of fund to run my family expenditures.

Please guide me as what should I do get immediate money from the Company.



Learning

 9 Replies

Advocate M.Bhadra   24 April 2013

You have to help yourself, You won't Get your dues until you intimidate your Employer. You must approach to The Commissioner Of Labour Office For Registering Your Case,failing which you can file a case in Labour Trbunal at Pune.

You can also Lodge a individual Police Complaints against the said company For Cheating And Misappropriation Of your money.

This is due to now a days Trade Union movement has been dead and Employers are scotfree to do anything in liberalised economic enviornment where Money is power they can buy administration, but you can harrash them which these businessmen are afraid of. Because they know time is money they don't want to invest in fighting for small reason.


 

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     24 April 2013

in such cases company can hold your reliving letter----n in case you want it desperately they would mention the same reason on the letter which is equally bad

Kumar Doab (FIN)     24 April 2013

 

Learned experts/members have given valuable advice. Kindly follow it.

 

You could have submitted a final resignation as well on last day in office under proper acknowledgment mentioning your latest address for correspondence. If you have not you may submit a copy by post.

 

Do you have the POD of PF forms, submitted by you? Of no obtain it.

You may submit a final representation addressed to the good offices of appointing authority, MD, Chairman, Company Secretary, with a copy to Head-HR by registered post, narrating the submission of notice of resignation, serving entire notice period, handover of charge, final resignation, and conclude that you have complied with your contractual obligations, and highlight your contributions and achievements, appreciations, awards rewards showered upon you by company.

 

You may also narrate the representations made by you by phone, emails, letters, in person ( mention date, time, phone numbers, name/address/designation/dept/address of company personnel and brief minutes of discussion/response of company ) and conclude that despite unlimited number of representation costing you heavily company has not fulfilled its obligations.

 

You may make a separate mention of non submission of PF forms by company to PF office ( enclose copy of POD of forms submitted by you to company) and that company has not supplied you the acknowledgement issued by PF office for you till date and same be supplied to you by redg. post only along with acceptance of your resignation, service certificate, relieving letter, Form 16, FNF statement, payment of FNF dues by bank DD only, NOC/NDC, and any other documents as desired by you, so as to reach you within next say…..7days by redg. post only. You may mention that a postage prepaid ( as purchased from PO) self addressed envelope is enclosed herewith for sending the redg. post to you.

 

You may also enclose a statement of payables by company to you and payables by you to company if any and demand that company may confirm if any amount is added or deleted from the list and that list is correct.

 

Relieving letter is issued after employee has complied with the exit formalities and nothing is due against employee. In your case you have conducted proper handover of the charge to the company employee who was available in office, and company ca not hold on to issuance of relieving letter.

 

If the good offices also do not provide any relief you can proceed against the company in any forum you are eligible to approach and of your choice.

 

For the PF you cam meet RPFC at your location with two copies of written complaint and copy of POD of PF forms submitted by you and demand that concerned PF office should depute PF employee to get your forms attested, proceed against the company to punish and penalize it. Obtain acknowledgment of your complaint with its diary number. You shall need to have patience and do follow up.

 

Refusing to submit PF forms is offence. Company shall stand volt faced and deny that PF forms were received by it. So if you have POD it shall serve your cause.

 

 

The sub postmaster provides one POD free of cost of redg. post and you can obtain certified copy of run sheet of postman by paying Rs.10/.

 

You may also mention that you are facing extreme financial hardships.

 

Unpaid wages can be declared debt on employer.

You may go thru an interesting thread at:

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

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

 

 

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 ( all employees whose wages are up to Rs.18000/pm as per definition of wages in the Act are eligible), Inspector under Shops and Commercial Establishments Act, at your location or location of HO/redg office of company or location of jurisdictional courts as mentioned in appointment letter……….

 

All of these enactments and contact details of the Inspectors are available at Dept. of labor website of the state. You can also search thru Google and contact thru local o/o Labor commissioner….

 

 

 

All employees must approach their respective community leaders, area councilors, trade union leaders, arrange a crowd and pressurize the police officials to lodge complaint.

 

 

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

 

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.

 

------It is felt that Bombay Shops and Commercial Establishments Act is applicable in Gujarat,:

You may go thru its clauses on: Time and conditions for payment of wages, Claims  relating  to  wages, OTICE OF DISMISSAL, WILFULLY MAKING FALSE ENTRIES,  ,Duties of the Inspector:………….

 

 

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

 

 

Companies post salary in expenses. Inspector can check, collect record from company offices, and call for records in his office…………..and if company has posted false entries, ir can be penalized……..

 

 

 

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.

 

 

 

 

-------------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.

 

Valuable advice of learned experts/members is sought.


Attached File : 951897963 model%20standing%20orders.doc, 951897963 payment of wages act 1936.pdf, 951897963 the bombay shops establishments act.pdf downloaded: 334 times

Nishh00610 (cs)     01 October 2015

Hi. I have an issue of salary. I joined on april 22 and left at 20th july. I was told at the time of interview that i will work as compliance officer and even in offer letter it was written that. But after 1 month they said i am appointed as company secretary & compliance officer and i have to give my membership number. I said i was not told about that at the time of appointment. They said if i dont want to give my membership no. than i can leave the co. Another thing was i was based at ahmedabad and they wanted my membrship. no. for a listed co. in mumbai and they didnt want to give any responsibilities of cs of that co. They just wanted my membership no. as name lending. Nor was i given any details regarding that company. Even in office i was not given any proper work or job descriptttttttion. Moreover i agreed to give my membership no. once they give me appointment letter. But even after 3 months they didnt provide appointment letter so i said no to give membership no. But at the last they were forcing me for that. So i left the job on july 20. I mailed them resignation and next month they didnt give me salary for 20 days of july. i mailed the same for salary but they said no. Now on 30th sep they have sent notice that i didnt fulfill the notice period so they want compensation of 1 month or else they willtake legal route. They even sent the copy of notice to icsi the institute of cs.

 

Now what action can i take in this? I officially was not appointed nor was given appointment letter nor was told about any notice period. even last salary of july have not been given. I am worried they ahve sent the copy of notice to icsi. Kindly help me what action can i take?   

Kumar Doab (FIN)     03 October 2015

@Nish00610,

The query posted in thread initiated by you is replied.

Umakant Jadhav   07 November 2015

Dear Sir, 

I am working in a PVT. LTD company based in Vapi Gujarat , recently our management body was changed and they decided to change the salary structure of all employees. earlier (before sept, 20150) my basis salary was 15500 now according to new salary structure my basic salary decrease to 11500. Is this legal and is it beneficial to me.

Also please suggest what action should we take against the same.

Please explain.

Kumar Doab (FIN)     07 November 2015

Have you accepted the changes? PF,ESIC etc authorities may not accept the changes and may term it as PF fraud!

Umakant Jadhav   07 November 2015

No, but they are forcing us to accept the same. PF is not applied to me by the company from the DOJ itself.

Kumar Doab (FIN)     07 November 2015

If your wages (as per def. of wages in PF Act, ESI Act etc) are within wage ceiling on any day you are to be covered.If you were covered on DOJ (from past employment) you could have been covered.Employer can cover even if the wages are above wage ceiling, by its sweet will.

 

The reduction in Basic+DA shall have adverse impact on PF,Gratuity,Leave encashment etc.

So try to negotiate.You may succeed.

Remain amiable,gentle.

They shall certainly force without leaving any trace of pressure on record.

It is you who has to record.

Apply your skills or lean on unions/lawyer OR accept.

It is your call.

 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register