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Aryan (Engineer)     01 May 2014

Full and final settlement

Hello,

I have left an organization. In full and final settlement my employer has not given me the money for my leaves. What action can I take against the company? What all I need to check before filing a case or going to a lawyer?

Thanks.



Learning

 10 Replies

SRIDHAR N L (MANAGER - HR & ADMIN.)     01 May 2014

Question 1:  Did you recieve any appointment order.  

Question 2; is your company registered as a Factory 

Question 3: have you completed 240 days of service.

 

If you have completed 240 days of service and your company is registered under Factories Act, you can claim one days of leave for every 20 days you worked.  this is normally calculated on basic Salary only. 

if this is the case, you can approach a lawyer and proceed.

regards,

Sridhar  N L

955116279

ROHIT MADAAN (Assistant Accountant)     02 May 2014

Hello,

I joined a Educational Institute in Dec.9th, 2011 with Gross Salary of Rs.9000/- p.m. But after completion  2 years of my job there are no increment in my salary. So I have left my job. But before leaving the job I have submitted a resignation letter on 7th April 2014 mentioned with notice period of 4 days i.e 10th April 2014. When I joined the institute, my employer not gave any appointment letter to me and no any bond or agreement signed by me. They called me on mostly Sundays and holidays and cannot give any reimbursement. Now they stop my salary for the month of March 2014 & April 2014 (upto  relieving date). Now they called me as per rules one month salary will deposit in Accounts Deptt because you have not submitted one month notice before the leave job. So please guide me How I can file a case in Labour Court?

Thanks

Rohit Madaan

+91-8882377875

 

M.S.R.Murty ( Manager (Admn))     02 May 2014

Dear Mr. Rohit,

You may approach concerned Labour  Officer and seek for relief.  Management can not dectate terms by oral means. But your attendance is important at school register. 

Aryan (Engineer)     02 May 2014

Thanks for your response.

Question 1:  Did you recieve any appointment order.

Yes, while joining the company I have received the appointment letter. But there is nothing mentioned about what will happen of leaves once after I leave the company.  

 

Question 2: is your company registered as a Factory 

How can I know this?

 

Question 3: have you completed 240 days of service.

Yes, I have.

SRIDHAR N L (MANAGER - HR & ADMIN.)     02 May 2014

If your factory is doing a Manufacturing activity then it should have registered  under Factories Act. Then you can very well claim Leave encashment legally for the days you have worked and as eligible under Factories Act, 1948.  You can straightaway approach Commissioner of Labour and give a complaint.  You will get the Leave encashment.  Please let me know where you are. If you in Chennai I can help you. Or else you can proceed as I informed you.

 

all the best,

Thanks / regards,

Sridhar N.L.

Aryan (Engineer)     02 May 2014

It's an IT company. It's in Software services.

Kumar Doab (FIN)     04 May 2014

@ Aryan,

Look into (Name of your state) Shops and Commercial Establishments Act.

Usually the leave encashment is @ Last drawn wages and it is defined under Section; Leave/Annual leave, and in enactment applicable to majority of the states issuance of appointment letter is mandatory.

Even if appointment letter is not issued the enachsment of leave can't be refused.

The leave policy of IT/ITeS company can't offer inferior provisions to this enactment . It can be superior.

You may decline to accept FNF statement and approach Inspector appointed under this enactment, address and contacts details of whom can be obtained from local o/o Labor Commissioner.

It is not mandatory to complete 240 days of service.

 

There are many threads on similar query that you may find relevant e.g;

 

https://www.lawyersclubindia.com/forum/Pl-leave-enclashment-101645.asp#.U2ZqTUeBmXU

 

 

https://www.lawyersclubindia.com/experts/Earned-leave-under-bombay-shops-establishment-act-468686.asp#.U2ZqcUeBmXU

 

 

 

 

Kumar Doab (FIN)     04 May 2014

@ Rohit,

Record calls/meetings (audio/visual) demanding notice pay and do not hesitate to point out that no appointment letter citing condition of notice pay in lieu of notice period has ever been issued to you and accepted by you, hence this condition is not applicable to you.

Has the employer been issuing salary slip every month?

Employer is duty bound to maintain proper record of OT in prescribed forms/registers and should pay OT with monthly wages on its own.

Employee should also lodge claim of OT in reasonable time.

You may download evidence of OT and lodge claim.

 

You may narrate all representations made so far by email, phone, in person etc (mention dates, phone numbers, names,…………..brief minutes of discussion) by final representation addressed to good offices of appointing authority, MD etc highlighting that you have displayed  character by tendering notice period and serving it too although it is not applicable to you, ……….…………………….and demand to supply ……………acceptance of resignation, service certificate, relieving letter (with good comments and avoid without or with adverse comments), FNF statement, FNF dues by bank DD only including OT, arrears (thru redg. Post),Form 16 as per correct FNF statement, PF number (if applicable), ESIC card (it is applicable), salalry slip of all  months of employment, etc……………………by redg. Post only…….so as to reach you in next say……………..7 days by redg. Post only.

 

You may mention that postage prepaid self addressed envelope is attached!

If good offices also do not resolve then you may approach your lawyer!

 

 

If employer defaults on wages then it might have defaulted on PF,ESIC, TDS, Contribution for insurance, Gratuity etc too………………………….
Employee can approach:

>>>Inspector under Payment of Wages Act; Applicable to all employees drawing wages up to Rs.18000/pm as per def. of wages in the act……………………………….within 1 year.

Salary slip to all employees duly signed by both employer and employee should be issued. Demand salary slip(s) of all months.

You may refer to: Payment of Wages Act; Sec: 2: 3*[(i), (ia), 3*[(vi), 3, 4 ,5, 13a, 14, 15, 16, 17A, 20………….. and if the Inspector agrees to cover you may immediately submit requisite Form for recovery of wages.


>>>Inspector under 
--( Name of your state) Shops and Commercial Establishments Act.

One of the duties of the Inspector is to ensure that wages are paid on time and FNF of separated employee is also done properly and in time.

>>> O/o Labor Commissioner;
The Labor Inspector might also be officiating as Inspector under Payment of Wages Act, Inspector under UP Shops and Commercial Establishments Act…………………………..however you may lodge complaints mentioning the enactments separately.


----Employees Unions e. They may help you.

--- Trade Unions.
----RPFC thru nearest PF office. 
Does the company supply PF number, PF a/c slips for each year/or E Passbook? It has to.

----ESTC Inspector in jurisdictional ESTC office………….
(Applicable to all employees drawing wages up to Rs.15000/pm as per def. of wages in the ESI Act)

--- Form16: --ITO-TDS where you file ITR and jurisdictional CIT-TDS where you company files ITR. Non issuance of Form16 by deductor (employer in your case) is offence and employer can be penalized.

 

----Lawyer/Law firm

---Civil Court

Employees have been contemplating to file criminal complaints u/s 406, 420……………………………and to approach employer as creditors treating unpaid wages as debt on employer e.g;

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

 

https://www.lawyersclubindia.com/forum/Full-n-final-settlement-100310.asp#.U0AEW0eBmXU

 

--ITO-TDS where you file ITR and jurisdictional CIT-TDS where you company files ITR. Non issuance of Form16 by deductor(employer in your case) is offence and employer can be penalized.

 

Discuss the matter in person with local Labor Consultant/service lawyer before you proceed further.

 

 Your lawyer may opine that you as per your designation/nature of duties should be covered as ‘Workman’ as in ID Act, ‘Employee’ as in shops and Commercial Establishments Act. 

The employees that are not even workman, members of unions they also know how to defend their rights and do not get influenced by line managers, HR and defend their rights.

 

You can also approach under State Education  Act the Directorate Of Education, Board/Univ. with which the inst. is affilliated.

Aryan (Engineer)     08 May 2014

@Kumar Sir: I have accepted FNF statement already. Is there anything I can do now? :(

Kumar Doab (FIN)     08 May 2014

It is reiterated that:

"The leave policy of IT/ITeS company can't offer inferior provisions to (Name of your state) Shops and Commercial Establishments Act".

If company has drafted a leave policy that is inferior to the provisions of this enactment then company has violated the Act.

If company has not circulated its leave policy then it has again committed error.

If it has not computed leave encashment in FNF statement/settlement then it has committed transgression and employer shall transfer the onus on HR personnel.......................

You may submit your demands to good offices of appointing authority, MD and if they also do not provide relief you meet  lodge a complaint to the lawful authority thru your lawyer/law firm, employee's unions, trade unions.

 

You have posted that ;

"Question 2: is your company registered as a Factory 

How can I know this?"

 

It shows that you are not properly informed.

 

Become member of unions and be properly informed.

 

A properly informed employee can defend his rights better than an ill informed employee.


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