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Thank You Kumar sir/Biswanath sir/Kalaiselvan sir for your kind and valuable advices. This is to reply Mr. Kumar queries marked in blue.
You have posted that:
----“salary will be on % basis of total collection of payment collected from the market, for which the entire team objected, as we were hired on salary basis and not on commission basis.”
Did each one in team object in writing under acknowledgment and do you have copies with POD? If yes the written communications may be perused.-No,there wasn’t any written communication. The entire team went on unpaid leave, as they were not ready to work under commission basis. Since,November was the month of Diwali, the company agreed upon to pay the Salary, but not the expenses.
Do you have copy of the said Text/SMS message?-Yes I have the copy of Text/SMS.
Does offer letter issued to you mention about salary?-It mentions the CTC/annum, but not the break up
The collection of payment of which Bills:::::the sale orders collected by you/team of previous sale?-It confines to the payment collected from the market of the stocks/goods given in the market. For e.g-20% of MRP. So to generate everybody’s salary, we had to bring back the payment from the market accordingly, which was next to impossible task and was an indicator to leave.
The bills are raised by company in the name of clients and employees at the most are expected to follow up. Employees are not buyers and not liable to pay.-The company has channel partners who have purchased the goods on consignment basis (payment on realization of payment from market).The field-staff sells the products in market(OTC team through retail counters & Pharma team through promotion at Doctors level).The initial bills are raised by company C&F to various distributors. So the collection has to be from the distributors. Its a vicious cycle basically.
----“On 15th November got a text message from the Chairman of the company that Pharma closed, without giving any prior notice.”
Do you have copy of the said Text/SMS message?-Unfortunately, that SMS has got deleted somehow.
Did you mention the said Text/SMS message in various emails sent by you?-The reverted SMS from my side to the Chairman is still there on my sent item.
If yes the company should tender lay off/retrenchment compensation to all employees as per applicable laws, standing orders, applicable policy of the company.-They have made mockery of all laws. Initially when I joined thinking it’s a big group, but inside it was hollow and shallow. I joined after my predecessor before me was asked to leave the company, along with the entire office Delhi staff. The next day after I joined, I had a meeting with the Chairman and was instructed to dismantle the entire team of nearly 100 people as according to him, no one was working and then select a small team out of them or I can bring my own team. I indicated the Chairman, this will create panic in the market and negative vibes will flow in the market. But he was too rigid on his decision as he wanted cost-cutting. How will you judge a team’s performance in 15 days time? An illegal injusticewas on the cards which was to executed by me.1st Sep they had launched the products in the market, and 15th Sep the company said they won’t pay Sep salary and 3rd Oct I joined with all chaotic burden on my head which I was not aware of.5th Oct the entire team was called at Delhi office to resign. But the senior managers made the team together and opposed to give resignation. The company wanted to fire the gun through me. As soon as the company announced they wont pay the salary even, the entire team went bizarre, and I had to save the director getting beaten by the mob. Very tactfully, I had to handle the situation as any time police could have come on seeing the hungama going on in a posh Official area. I immediately called Chairman, and said to pay the salary to keep the things under control. In the mean time I took one of senior managers under my confidence, and promised him the safety of his job to disintegrate the mob and it happened accordingly. All were paid their Sep salary, and simultaneously resignation property handover was done and was told the expences will be cleared during F&F settlement which was never done barring few who created chaos in front of the Chairman’s house. On 7th & 8th Oct, conducted the interviews of 100 people from 8am to 10 Pm and finally selected the best 35 people to look after Delhi and NCR.
After the Text/SMS message regarding closure of business what was the need for resignation? Did you mention the reason e.g. non payment of wages, closure of company etc in notice of resignation/resignation?-There was a big reason of resigning, as me by then had come to know that, the company’s intentions are not good and I will be only playing with my career if I stick there any longer. As I was heading Pharma and OTC team both, once the Pharma division was winded up, OTC div will be winded up at sooner or later.They delayed the OTC closure as lot of stakes were there on the market. And all the backlogs and payment fuss would have come on my head which has happened before my joining.
No I didn’t mention that on my resignation.
What was the notice period/rate of notice pay stated in offer letter issued to you?
If it was not mentioned you should claim notice period/notice pay is not part of agreed T&C in your case. Since no appointment letter was ever issued to you so you should succeed.-Nothing as such is mentioned on the offer letter.
The company on its part may claim that the service rules and regulations, HR policy that governs the employment does have clauses on notice period/notice pay, and that……………………………the relationship is of Master-Servant and specific relief Act shall apply and contract of personal service can’t be enforced in court of law………………….etc to defend its interest.As I told you earlier they have done mockery of all laws……..even on PF. Neither PF numbers were given, nor the contribution from both the sides were submitted at the PF office. There was a notice from the PF office, then they acted upon. They are basically from the distilleries industry and wanted to enter into the pharma industry with a big dream project having impractical and illogical plans which failed in the market and everything boomeranged on them.
----“On 17th October, the director of the company said that he cannot pay the salary of October. I was shocked to hear it on the first month of joining. After lot of convincing being done, he released the salary of October’2013.”
On which date the salary was paid?-2 days before Diwali, last year. I prepared it along with the HR executive and all details are with me.
Did you get salary slip?-They do-not have a practice of salary slip.
----“ Nearly 10 times I went to the office after I resigned, and asked the director to pay my salary and settle my account by clearing all my dues. But every-time he makes false false promises and it is now 6 months he is doing so.”
Did you record the meeting (audio/visual), phone calls (audio), cover the meeting in minutes of meeting in emails sent by you?-No.but have telephonic recordings but not sure how much will it help. Video/audio recording can be done when I go next.
If you have recorded (audio/visual) and have witness (es) then it may amount to admission to pay and admission of debt.-Nearly 500 people witness are there. But most have got disintegrated.
Has your designation, role, responsibilities been described in offer letter issued to you? Does it state that you are empowered to sanction leave, sign appointment letters, termination orders, increments etc and did you ever do so?-No
Your lawyer may opine that the designation given to you was a glorified/for name sake only and you would be covered as ‘Workman’ as in ID Act, ‘Employee’ as in (Name of the state) Shops and Commercial Establishments Act?-Can’t comment, as not aware of the legalities. I was in the senior most management team
Do all team members agree to be a witness to each other?-Most have got disintegrated, but can be persuaded if required. The pharma team got united after they were asked to leave……and the company settled their account out of pressure and scare. Rest people who left before my joining and the OTC team have lost hope.
Have they also submitted complaints?-In Delhi there wasn’t any written complaints at any place till I was there, as I was a management man. I think the guys from other parts of North India are going to Labour court through Pharma Union.
What is this company/establishment registered as: Commercial, Industrial, Small Enterprise?-Yes it has a sell tax number also a drug license in the name of the GM-Production,and later I was approached to get it transferred on my name, since the GM was also shunted out. But I refused the offer.
It should have displayed its registration Certificate at a conspicuous place e.g near entrance/on notice board!-Drug license copy is there.
How many employees are employed in it?-Before my joining must be around 1000(entire north India).Delhi+Western UP itself had 200 people. After I joined Delhi+NCR had around 40 people.
What was your designation in offer letter and nature of duties? –Business Head and to look after the business of Delhi and NCR.
You were located in which state and does company have an office in your state?-Delhi. Initially they had rented an office at Delhi, but closed it due to cost cutting and shifted to Gurgaon, where me and the Business Head looking after Haryana/Rajasthan/Punjab shared the same office.
Does company have any office at your current location? –They have now 1 office at Gurgaon and the other office at residence cum office at Gurgaon itself. Another rented office was at Lucknow.
Has it stated notice period/pay in offer letter?-No
Do you have copy of resignation letter submitted by you and its POD, acknowledgment?-Resignation was send through mail addressed to the Chairman which is yet to be accepted.
Did the company ask you to serve notice period in writing, handover the charge and company property and do you have copies and acknowledgments?-They are in mood to make any kind of correspondence to avoid legal complications.
Are you and team members::: members of any employee’s unions/trade unions? –I cannot be a member of Trade Union since I was in the senior most management.
Do you have any evidence/acknowledgment of having submitted expense statement and eligibility of allowances/fare and copy of approved TP?-I have the following copies-Acknowledged copies of expenses submitted/Email of pharma closed/SMS of salary on % basis/October salary sheet/October attendance sheet/and other official correspondence.
The above info shall help hence post it.
To sum up, after I left the organization, in the month of December they handed over the entire business to the 5 Business Heads on franchise basis on I think 30% commission, which was done on a legal document. They did it deliberately, as they were not ready to take the burden of paying salary every month so passed the buck to all Business Heads. The BH’S had no choice then to accept it, as they had to run their families. I could foresee such things coming on the way, so decided to part off to be aside of any more trouble. Later came to know, since all the B.H’s did breach of contract, all of them were issued legal notices and did not even spare the channel partners-must be around 200 if not more. The notices acted as double edged sword-1st breach of contract and 2nd did-not have to pay the salary to B.H’s. Every B.H who were working since April have an heavy outstanding amount due.Most employees F&F are yet to be done but have taken resignation and company property long back. It’s a classical case of breach of all legal laws by a company in this 21st century in the capital of India. May be such companies think they are above the law and can do anything at will keeping law in their pocket with help of money power and muscle power.Not a single employee was happy and all worked due to compulsion. The Director treats everyone as slaves with abusive language. Currently all have left the organization………..only Gurgaon office is operating having 4-5 office staff. You can imagine the amount of negativity propelling in the office when a HR executive goes on with a verbal war with the management and shoots resignation mid of the working day. Off late they have hired one Country Manager who is trying to fix the mess……..
Will they be scared of legal notice from my side when they have served 100’s of legal notices to BH’S and channel partners. How long the legal battle will take? What all actions needs to be taken from my side asap in the form of evidence. Will I get justice?
Awaiting responses and guidance from all in the panel/forum…………
Brgds,
Prasenjit
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