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vikal (executive)     06 July 2012

If this is a criminal offence..payment of bonus.death case

 

Dear Sir,

 

One of my Family member was working as a Technician in a Sugar Company.He was extra ordinary & got a job offer from other company on higher package.The Employer offered the Employee a Performance cum retention bonus plan on 1 june 2011 under which the employer will pay 2 lacs to the Employee apart from his salary in next 3 years the payout being

 

1-30% of 2 lacs at the end of first year (ie 30 june 2012),

 

2-30% of 2 lacs at the end of second year(ie 30 june 2013)

 

3-40% of 2 lacs at the end of third year(ie 30 june 2014)

 

the employer imposed a condition in this offer that he would not disclose this offer to anyone & if the employee resigns from the company on or before 30 june 2014,the company will recover all the performance cum retention bonus advances.

 

The employee accepted this offer.The employee met with an accident while on a company work & expired in april 2012.

 

the employer paid the remaining wages & PF etc to deceased wife & never informed the Wife about any such Contract of Performance Cum retention Bonus to the Deceased Wife .The Wife accidently discovered the Agreement signed by the Employer in Deceased personal  documents & was confirmed secretly by a HR person that such a offer was made to deceased.

 

My question is:

 

1-If any bonus is payable to deceased wife by employer under terms & conditions of Contract?

 

2-If yes ,then whether it is 30% of 2 lacs or Proportionate of 2 lacs taking the period he served from 1 june 2011 till his date of death & divided by 36 months

 

3-If the whole Bonus of Rs 2 lacs is payable to him as the absence of Death Clause had made the things positive/Favourable for the Employee

 

4-If even a part of bonus was payable & the employer kept Silent on the issue of payment of that part to deceased's wife & didn't even inform the Deceased's wife,if it is a Criminal offence

 

5-If it is a criminal offence ,then if a FIR can be registered taking that Contract paper as evidence & under what sections of IPC.

 

I hope i will get a proper guidance so that the Deceased Employee's wife may get justice.

 

Kind Regards

 

Vikal Kumar

 

 



Learning

 6 Replies

Anish Thakur 7018812737 (advocate)     06 July 2012

first of all it is not a criminal offence so no fir can be lodged

however you can lodge fir for 420 ipc

file suit in the court for specific performance of contract ,

yes widow is eligible to get the amount of money payable to her husband under this contract

feel free to call on 9459321520 between 1-2pm

vikal (executive)     06 July 2012

Dear Anish,Thanks for your reply.Filing a Fir under Section 420 IPC is not a Criminal Offence??? I believe there is a punishment of upto  7 years & Fine.It is a cognizable & non bailable too.Also,since it was a contract between a Employer  & a Employee ,does it attract 406 IPC?

And last & most important thing,In the absence of any Death Clause in Contract ,how much bonus is payable to Wife when the person died in April 2012 while he was to receive first instalment of 30% of Rs 2 lacs on 30 June 2012

Kindly reply

Hemang (Advocate)     07 July 2012

The deceased employee was working in a Sugar Factory as technician. Obviously, the said employee falls within the definition of workman. It is advisable that a recovery application may be preferred before the Labour Court as provided under Section 33 of the Industrial Disputes Act. The legal heir can certainly file the recovery application based on the said contract and as such the benefit can be easily computed by the Labour Court. The clauses in the contract are clear and unambiguous. There is no question of any "criminal liability whatsoever". It is a civil liability towards the deceased employee. It is also a matter of proper interpretation of contract entered into by and between the parties. If you file a suit based on contract before the Civil Court, you may have to bear the cost of Court fees, whereas before the Labour Court, there will be no cost, or minimum cost of hardly Rs. 10.00 to 25.00.


Section 33 reads as under:


33C. Recovery of Money Due from an Employer. (1) Where any money is due to a workman from an employer under a settlement or an award or under the provisions of 2[Chapter VA or Chapter VB] the workman himself or any other person authorised by him in writing in this behalf, or, in the case of the death of the workman, his assignee or heirs may, without prejudice to any other mode of recovery, make an application to the appropriate Government for the recovery of the money due to him, and if the appropriate Government is satisfied that any money is so due, it shall issue certificate for that amount to the Collector who shall proceed to recover the same in the same manner as an arrear of land revenue :

 

vikal (executive)     07 July 2012

Dear Sir,

The Employer was contacted regarding this,firstly he expressed ignorance about the contract,then he showed a list of some instruments being issued to Employee & asked the instruments or their cost back from us.we have no knowledge of the tools/instruments being issue to  deceased.the employee showed records of 7 tools being issue in employee name out of which 3 are believed to be received by employee(signed by him),while 4 tools have no receiving of employee.

the question is,are we legally  liable to pay/ find and return the tools  the Employer is asking for.We don't jhave any such knowledge of Tools & instruments & can the Employer blackmail us like this.

vikal (executive)     07 July 2012

Dear Learned lawyers,

I am awaiting response. 

Hemang (Advocate)     07 July 2012

Why do you bother about the facts of their case. First of all, you file an application for recovery before the Labour Court. Let the employer file the reply. You will come to know about the facts of the case. Assuming that something is liable in terms of recovery, the employer cannot own its own adjudicate and recover anything. The so called recovery has get to be adjudicated through the competent civil court. There are judgments to that effect. 


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