Employers not paying dues

You committed a blunder by accepting a job at lower salary with a company which has no stand, credibility, image, footing, ranking etc. Although there is a recession and start up companies are being looked at; however one should always consult elders in the family, competent and experienced well wishers, before taking such major decisions.

One should always run a check at financial health of the employer company, promoters, and their track record, in today’s fluid market. Many companies came and vanished leaving the employees in lurch.. The employers are into the process of background check and it is a professional need.

Just think if you can help a start up company to establish you can very well establish your own venture.

One who has the vision for his venture and become successful entrepreneur shall pave the way for betterment of self and coming generations.

If you have not tendered notice of resignation then you have become liable for payment of notice pay.

If you are able to persist you can influence to wave off the notice pay.

The employer must pay the dues to the employee within 2 days from separation.

Employee should record (audio/visual) the coercion/threat of employer e.g. no dues mail from you despite the fact that employer has not paid you the salary. If you have an email to this effect you shall have an upper hand.

You may submit a gentle representation to your appointing authority, MD, Head-Hr covering all points and stressing upon the fact you were not paid salary for months altogether although you were made to work for extended hours/off days etc.( if you have) and this is the reason you were left with no option but to separate and seek your livelihood somewhere else. Demand acceptance of resignation by letter, settlement and disbursement of dues ( submit a list of each item) FNF statement, form 16, PF number, PF accumulation report, PF withdrawal/transfer form, work experience/service certificate, relieving letter etc.Non payment of wages makes employer unworthy of being employed with. In these circumstances company looses moral control over extracting notice pay.

If the good offices of your employer do not grant you any relief, you may lodge a complaint with o/o labor Commissioner/wages inspector. These offices are competent to drill sense into the employer.

One of my friend  is working with a well reputed company for last 12 years .For last four months the company has not paid Perks as well as salaries to staff .What are the rules /laws in case the Employer do not pay the statutary dues like PF( with co. PF trust) , Suoerannuation , Gratuity , Leave encashment etc.Factory is not in operation for last two months.

Please advice.

Sir,

i worked for a company for 1 and half years. I resigned in June 2011 & joined my current organization. I completed all the formalities before leaving and also got the ff statement & relieving letter with a promise that i can withdraw my PF money after 3 months.

Now after three months when i asked them for the PF account number to continue with the same a/c in the current organization, I come to know that PF a/cs were never created inspite of them deducting money from my salary every month. When i approached the company for the same they asked me to wait for 15 days, after 15 days they now put me of to some other guy in the organization who claims that 'By Mistake' they paid me excess salary in some month and hence my PF money will be adjusted against it. I asked them to give it to me in written which they are not giving, i asked them that if i owed money to the company how come you gave me FF settlement letter & relieving letter for which they have no answers. Kindly advice me on how can i get my money back from them.

Regards,

Rahul

Although employees should support the employer/company in need of hour, it is your friend who is closest to the reality and can take a qualified decision on the matter, if the employer/company is capable of come back/bounce back and wriggle out of the situation and whether the intentions are genuine.

If the company is going to become bankrupt employees should finalize their next venture.

Employees should express their grievances/needs in writing, under acknowledgment, to the good offices of appointing authority, MD, Head-HR, Company Secretary, and if all are united may give a representation and reminder.

Complaint can be lodged with o/o Labor Commissioner/wages inspector.

-As per Payment of Wages Act, enclosed above in this post:

As per Payment of wages Act

5. Time of payment of wages.- (1) The wages of every person

employed upon or in--

(a) any railway, factory or 1*[industrial or other

establishment] upon or in which less than one thousand

persons are employed, shall be paid before the expiry

of the seventh day,

(b) any other railway, factory or 1*[industrial or other

establishment], shall be paid before the expiry of the

tenth day

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.]

14.

Inspectors.

3*[(4) An Inspector may,--

(c) supervise the payment of wages to persons employed

upon any railway or in any factory or

2*[industrial or other establishment];

(d) require by a written order the production at such

place, as may be prescribed, of any register or

record maintained in pursuance of this Act and

take on the spot or otherwise statements of any

persons which he may consider necessary for

carrying out the purposes of this Act;

(e) seize or take copies of such registers or documents

or portions thereof as he may consider relevant in

respect of an offence under this Act which he has

reason to believe has been committed by an

employer;

14A.

Facilities to be afforded to Inspectors.

2*[14A. Facilities to be afforded to Inspectors.- Every employer

shall afford an Inspector all reasonable facilities for making any

entry, inspection, supervision, examination or inquiry under this

Act.]

15. or delay in payment

of the wages,

-- Preferential Payments:

"all sums due to any employee from a provident fund, a pension fund, a gratuity fund or any other fund for the welfare of the employees maintained by the company;"

-"(3) Where an employer intends to close down the business he shall submit a notice in Form C to the controlling authority of the area at least sixty days before the intended closure."

If required all employees can join and  approach a competent and experienced service lawyer/labor consultant and proceed under expert advice.

Sir,

Also to add to the question even after working for a year they didn't confirm me though the appointment letter says they would confirm me after 6 months. However after a year i resigned for a better opportunity thus not being able to avail any confirmation benefits. Kindly advice on my rights on this and how can i get my money back

@ Rahul,

Your company has committed a blunder and is liable to be punished. You need not be anxious or worried. You have an upper hand. It is suggested that you may stop telephonic and verbal communications and start recording the calls if any one calls you.

First of all submit a gentle representation in writing under proper acknowledgment, addressed to the good offices of your appointing authority, MD, Head-HR, Company Secretary and cover all points as posted by you and mention date, phone number from which calls were made and phone number at which calls were made by you or company (and retain the phone call bills in original) and submit the statements made to you and mention that you are enclosing a postage prepaid self addressed envelope and seek a reply in writing from good offices say within 7 days by registered/speed post only. You may state that you have been informed by Mr/Ms...........that PF a/c has not been opened by the company and company has been deducting the PF contribution and has not been depositing with o/o PF commissioner. You must not give any statement in writing even if an authority from good offices asks you to do so.

If company wishes to revise, prepare and send you another FNF statement let them do so, but you must demand an explanation  in writing on letterhead of the company under original seal and signature by hand of the competent person not less than authority of good offices.

Such unscrupulous employer should be exposed.

If the good offices do not revert in writing or adopt a dilly delaying approach, you may lodge a complaint with concerned o/o PF commissioner. You can find the details at : www.epfindia.com,  www.epfindia.gov.in

@Rahul,

Please check  your appointment letter, and study the terms and conditions expressed for confirmation of service.

You may remain firm and make teamof elders in the family, competent and experienced well wishers, trained legal mind/lawyer/law firm and deal with this employer under expert advice only. You shall be able to get everything if you remain firm.

Sir,

Thank you for your help, as guided i had written a letter to the concerned higher ups in the organization. They have replied stating that they will deposit the money in the PF a/c after its opened. Since the a/cs have still not be opened and they are asking me to wait for another month. After the a/cs have been opened i will have to wait for another 3-6 months to claim the PF from the PF office as per PF norms

(1) Can i ask them to pay the pf money to me directly along with interest applicable?

(2) If i can what should be the procedure?

Regards,

Rahul

You have posted that:

-"they paid me excess salary in some month and hence my PF money will be adjusted against it""

No adjustments can be made from PF account.

Company has issued you the FNF statement and has settled your a/c. If at all company has paid you excess salary and you wish to settle it company should supply you a letter on its letter head under original seal and signature of one of the good office of appointing authority, MD, Head-HR, and should state in writing that it shall issue you as revised FNF statement and form 16 as per revised FNF statement and if due to any reason at the end of company you end up paying dual tax company shall refund the amount  to you at once and shall submit the required representations to ITO to correct your tax liability and shall refund the amount of legal consultation and support you may require in the matter.

-"I worked for a company for 1 and half years. I come to know that PF a/cs were never created in spite of them deducting money from my salary every month."

and

"I had written a letter to the concerned higher ups in the organization. They have replied stating that they will deposit the money in the PF a/c after its opened." Has the company issued this reply in writing to open PF a/c after say 2 years?

It is suggested that you grill the company in writing for their conduct of illegal approach. It is suspected that it may not be you alone but many of employees whose PF contribution has been deducted but not deposited with o/o PF commissioner. You have an upper hand now and you can extract all due benefits which were denied to you.

All employees should unite and report the matter to CPFC :

and let this unscrupulous  employer face the music, penalty and punishment. Do not make any compromise. This employer does not deserve it. The MD of the company can not claim that he was not aware that PF a/c of his employees was not opened even after deducting the Pf contribution. This MD has not deposited employer’s contribution also and has perhaps used this money for his business and personal ventures. CPFC shall get you your PF number, PF fund with penalty from employer.

It is also suggested that you should not withdraw funds from PF a/c, rather you should keep the a/c regular for 10 years and thereafter you shall become eligible for pension.

If you withdraw you shall loose a considerable portion from your pension corpus. Thus you shall be in loss.

Valuable advice of learned experts and members is sought.

Sir,

The finance head has replied that "you will have your PF a/c number after 15-20 days since PF department is going through a transformation"

Regards,

Rahul

The PF a/c of the employee should have been opnened from the very first month of employment.

You have posted that "PF a/c was never created during your employment of 1 and half year, which implies that PF a/c is being opened after your separation and after your complaint to comapny in writing.

And finance head has confirmed it in writing.

Is the above correct? If yes employer is defaulter and shall be awarded punishment, and matter should be reported to CPFC.

Once the PF number is supplied to you ( ask for supplying it in writing) you can always confirm date on which  the a/c is opened.

The PF office may not accrue interest from the very first month of your employment.

dear sir

i worked one in niit franchiese as a technical and leav job in jun 2011.at the time of leaving they hold my two months salary and return me in partially but they still have 8000 and excusing daily waht is the liggle action i can take .i have a self check of that firm and saved messages in my mobile  of them in which they excusing daily.

pls help me