Madhav 09 July 2016

Employer's plight

Hi All,

We are into IT Services and are kind of startup firm. Due to the nature of work, we did utilize some services from a Technical resource with good intention on some longer term association.

However, some of the things we missed out were having a formal working relationship with that associate due to known reference. Though this is not acceptable in business terms, we started working together without any formal offer or agreement letter.

After 4 months the associate did not turn up on important event when the project was supposed to Go-live. The reasons stated were he could not trust the e-ticket issued to him for travel.

Though the ticket was purchased from one of the reputed online ticketing systems, he refused to travel and remained silent.

Some of the mistakes we did as an employer are

1. Did not formally initiate a working relationship (meaning no offer / agreement letter)

2. Did not terminate the associate or given relieving letter to associate (as there was no resignation letter submitted)

3. Paid the associate in full for those 4 months from our current account.

Just because there was credit to his account and few emails exchanged during the 4 months tenure pertaining to work, there is a demand for money for the period where there is no work also.

We totally agree that we did not follow the discipline of business, there was some soft corner due to some common reference who influenced the decision of working with that associate.

Though we are ready to issue some kind of documentation, they are trying to take undue advantage of the situation by demanding more money.

Would there be any kind of legal consequences from this, if yes, what kind so that we can be prepared.

Have a nice day

Thanks and Regards

Madhav

Reply Follow

7 Replies

Kumar Doab (FIN) 09 July 2016

You have posted that:

" there is a demand for money for the period where there is no work also."

During the working period employee is the disposal of employer and employer can assign work.

Monthly wages are to be paid for entire month even if employer can not assign work.

Non payment renders employer unworthy and violator amongst community of employees.

Pay and close properly.

You are in which state.

Madhav 09 July 2016

Hi Kumar,

Agreed with your view. However, the demand is for the period which is not agreed. Payment has been done for the tenure where services are utilized.

Due to the fact that the associate did not turn up for the major event and silence after that event from the associate, there was no payment made.

Example: If the agreed period is for september to december, the payment was made irrespective of any working hours. Now the demand is after december when there was no show from the employee

To close properly, the associate is just going on writing emails but not turning up physically

Thanks and Regards

Madhav

JustAdvisor (IT) 09 July 2016

did you keep any attendance muster/software for swipe in and swipe out?

Kumar Doab (FIN) 09 July 2016

It is not clear if the payment of salary was made on due days/dates.

If NO; you have erred. IN that case employee cal always claim that he/she has no monies to bear the office expenses and is at his address.

You have not issued proper docs and maintained proper docs/registers as per Shops & Estbs Act, Shops & Estbs Rules.

So;you have erred.

Close the matter amicably.

In future better retain a very able Labor Law Consultant to guide you.

Kumar Doab (FIN) 09 July 2016

You have not replied to:

'You are in which state.'?

Ritesh Maity (Labour Law Advocate) 10 July 2016

The employee/ associate can claim his salary even for the period when you have failed to provide him any work.

Since he has received salary for first 4 months, he can establish employer employee relationship even without any the appointment letters.

Now when he refused to come to an important event citing reasons of incorrect air ticket etc. then is such conditions, it is the responsibility of the company to issue a charge sheet/ show cause against him and take appropriate actions as per law. You cannot just withheld his salary.

The employee has rightly claimed his outstanding wages and as long as he is in service he will be entitled to such wages. So I advice you to consult a lawyer and take legal steps to get rid of this employee/ associate at the earliest following proper legal procedure so that you do not have to keep on paying the outstanding wages.

And please try to follow the guidelines as per the Shops & Establishment Act.