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anoop kumar bhatia (GM)     09 July 2013

Non payment of dues after vrs

Dear Sir,

I opted for VRS from a Public Sector Undertaking and was relieved in the first week of April 2013. 

I got PF, Gratuity and some more dues pending.

However for the last three months company is not paying me the balance payment of Rs. 6 lakhs due towards them. I had been sending e mails and making phone calls to all concerned including Chairman and Directors of the company. But the verbal answer is "No Money Available and would be paid when it is available however no commitment". 

Company is paying full salary to their employees, contract labour etc. but in a way denying to me. 

The offer of the VRS was from the company and in all many people accepted it and got relieved and paid also in full. I am the only employee who was relieved last is not paid in full.

All the payments expected from the employer after VRS were booked against my future plans and now i find myself in a very awkward position to fulfil the obligations.   

I have full text available with me for the e mails sent by me to the employer.

What should be my course of action now?

regards

Anoop

 



Learning

 3 Replies

Sudhir Kumar, Advocate (Advocate)     10 July 2013

sue the.  "No money" is no ground for refusal of dues.

 

consult a CA on the feasibility of filing liquidation application if your dues are above rs 500

Kumar Doab (FIN)     10 July 2013

As advised by Mr.Sudhir Kumar let your lawyer/counsel evaluate the option of  approaching the employer as creditor and treating the unpaid wages as debt on employer.

 

The time for the payment of FNF dues is usual pay day.

 

It shall be appropriate to show all docs to a competent and experienced labor consultant/service lawyer, spend quality time with your lawyer, give inputs in person, and proceed under expert advice of the lawyer.

You must be aware of the precise reasons why you alone have been chosen to be denied of your legitimate dues on supposedly false pretext of:

"No Money Available and would be paid when it is available however no commitment", as other employees are being paid their dues.

You may download the policy details pertaining to VRS and time schedule for payment. Find the lapses and defaults on part of establishment and press the right buttons.

You may also download the standing orders of the company and go thru it and find recourse under it.

Payment of wages Act (applicable to all employees drawing wages up to Rs.18000/pm) 
2. Definitions.: 3*[(vi) "wages" means all remuneration………………..
(d) any sum which by reason of the termination of employment of the person employed 
is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

If applicable it may offer reprieve to you.

Gratuity: Submit FormI as ap. Later you may have another burden of getting the delay condoned.

Although the company has defaulted as per Payment of Gratuity Act Section7 (2) (3)…

{It is for sure that if company has not determined the amount of gratuity and given notice to you it would not have submitted to Controlling Authority as well and the  authority won’t state that notice was received in its office. You may peruse the RTI route if required.}

 

Section: 7: Determination of the amount of gratuity: 
(1) A person who is eligible for payment of gratuity under this Act or any person authorized, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.
(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount gratuity so determined.
(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.

 

Seek your lawyers counsel to understand the merits in filing criminal complaint under sec. 406,420......................................................

Sudhir Kumar, Advocate (Advocate)     10 July 2013

well elaborated by Mr Kumar Doab


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