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Anuj Kathuria   29 April 2025

Labour issue

Sir,
I ,Anuj Kathuria had closed down my proprietorship audited firm M/s Sushma sarees , with four employees , in March, 2017 . Employee Ramesh ,was employed with the firm for 16 years  as packer. I had not taken any request letter from him, at the time of his joining of service .
I started a new proprietorship firm m/s Swastik sarees on 01/07/2017.
Firm not registered under Shops and eastablishment Act. 
Firm A/cs were audited for Fy 2017,2018 . 
Firm expense under the head : 
Salary payable to staff
was paid to Rahul,Jitender (book entry). 
No entry in a/c books under the head salary : 
For Ramesh since 2017 though he was in service.
Firm A/c books were not audited after 2018 due to low sales.

Present scenario:
Firm does not maintain any attendance register and monthly salary of Rs 14500/- (mutually agreed) was paid in cash to only employee, Ramesh. 
He demanded an immediate hike in salary on 01/3/25 . I requested him to wait for some period for sales to pick up but he had other ideas.
He started absenting from service since 01/03/25 . 
I called him on 15/03/25 enquiring about his absence from service to which he replied that he was getting house renovation done at his native place . 
I received whatsApp message from him on 15/04/2025 demanding Rs50000/- on a/c.
His salary for the month of March, April is to be paid by me. 
Should I deposit his due salary in his bank a/c?
(Not as per  notification by Delhi Govt. Minimum wages for packer Rs 18500/-)
Should I send letter at his address enquiring about reason for his unauthorized absence from service? 
Will I be liable to pay gratuity to him if he decides to resign from service today/ in future?



 1 Replies

P. Venu (Advocate)     29 April 2025

Admittedly, the employee has been working with for a very long period.

As an employer you are legally bound to pay salary not less than the notified minimum wages. However, therfe is no obligation to pay for the period he has not worked.


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