There are an ever increasing number of threads being posted by employees on not being paid by employers, the employers coercing to resign, issuing threats to terminate/block proper relieving letters/ issue adverse reference checks, ...............….
Other thread initiated by you:https://www.lawyersclubindia.com/forum/Late-payment-of-salary-81437.asp#.UaHCI9KAqWM
Since employer has announced it won’t pay and you are apprehensive that you may not get paid, you are making a mistake for working without getting paid for earned wages.
Salary can not be stopped.
There is nothing wrong if a company and employer is ambitious and aims high, drives the team of employees to achieve unparallel success.
However it does not mean that employers shall not support the employees and ask the employees to work for free and rather pay the employer, as in your case you are footing the bill for Branch Expenses and are working without payment of wages.
You may go thru some interesting threads:
e.g:
https://www.lawyersclubindia.com/forum/Salary-due-for-6-months-81100.asp#.UaDczqKAqWM
:https://www.lawyersclubindia.com/forum/Company-in-liquidation-77247.asp#.UZtk5KKAqWN
Probably you are apprehensive that since appointment letters, salary slip are not issued, employer is fooling the employees and authorities…………….
First of all al employees may join hands, agree to be a witness to each other, and firm up your next employment as ap, and then submit notice of resignation to the current employer.
If you resign with immediate effect the employer would be happy to square off your dues and adjust notice pay.
{If you decide to resign take care to declare the employer unworthy of being employed with and demand that notice period/pay be waived off in writing, and such a communication preferably drafted by your lawyer.}
In the mean time submit a gentle and pointed representation addressed to good offices of appointing authority, MD, Chairman, Company Secretary,……..and narrate what were your expectations from the company and what promises were made to you while appointing you, lack of support, infrastructure, resources, non payment of wages, salary, branch expenses etc………….. (Write only those points which you can prove later) and conclude that you are facing acute financial hardships and are not able to meet expenses of attending to office, your family and personal needs and should be paid at once.
>>>In addition to the Industrial Disputes Act, 1947, states also provide for compliance's under the Shops & Establishment Acts, Standard Standing Orders Act……. If the employee falls within the definition under these enactments, then he would be protected, up to that extent. All of these enactments may be available at the Dept. of Labor website of the state.
You can approach all authorities as per your eligibility:
O/o Labor Commissioner, Inspector under Shops and Establishments Act of the State
(Applicable to al employees as per definition of employee in the Act), Inspector under Payment of Wages Act (applicable to all employees drawing wages as per def. of wages in the Act up to Rs.18000/pm), civil court, trade unions………..
You have posted that:
------“ they are not going to pay a single penny as salary and even branch expenses. “
Employee should record such transactions (audio/visual) and keep evidence, for use at appropriate time in appropriate forum..
Find your own way and mean to report to good offices that Mr/Ms………….has states so…..on dated……...at…………..and build some favorable record in writing (under acknowledgment), in personal files at home.
------“ The company did not pay any appointment letter to any of its employees, They had provided just an offer letter.”
What is the probation period stated in offer letter?
Designation alone does not decide employee is a workman or not.
It is felt that notice period is not applicable during probation period.
{ Model Standing Orders:
13. Termination of employment.- (2): ………………….. no probationer ……….shall be entitled to any notice or pay in lieu thereof if his services are terminated ,………………………..}
The company must have registered under Shops and Establishments Act of the State.
While you may refer to the act as applicable to your state.
Let us take a cue from e.g. : Delhi Shops and Establishments Act
19. TIME AND CONDITIONS OF PAYMENT OF WAGES.
20. DEDUCTIONS WHICH MAY BE MADE FROM WAGES.
21. CLAIMS RELATING TO WAGES.
34. Employer to furnish letters of appointment to employees……………….
COMMENTS
The object of the enactment is to furnish an accurate proof of employment to an employed person and for this object in view, the Legislature provided that…………
Failure to issue appointment letters under section 34 of the Act to the employee amounts to ‘unfair labour practice’ resorted to deprive them of the benefits which accrue to them due to the length of their service; Bharat Mudranalaya v. Workmen, Delhi Gazette, dated 7-5-1970 (IT).
30. Notice of Dismissal.: (2) No employee who has put in three months’ continuous service shall terminate his employment unless he has given to his employer a notice of at least one month, in writing.
{Implying for service period below 3 month’s notice period is NIL, and above it is max. 1 month}
COMMENTS
(a) Applicability of section 30:…………………….In the absence of any standing orders or any contract between the employer and the contesting respondent containing any particular terms or conditions, the conditions of service of the employee relating to his employment in an establishment atDelhi are covered by section 30(1) of Delhi Shops and Establishments Act, 1954
{ Aparently since there is no appointment letter issued and accepted by employee trhere is no contract}
(b) Notice or wages in lieu thereof under section 30—When to be given?
A plain reading of section 30 of the Act would make it clear that whereas the notice of one month under sub-section (1) is for the benefit of the employee, the notice under sub- section (2) is for the benefit of the employer.
{Implying …………………….long notice period is obviously for the benefit of employer}
33. Records.
COMMENTS
(a) Particulars and forms of the records required to be maintained under section 33………..
The register of employment and wages is required to be kept in Form ‘G’ duly bound and
pages serially numbered……………..
(b) Grant of exemption from maintenance of prescribed records
Under rule (14A) of the Rules if on an application made by the employer in writing the
Government is satisfied that any register or record maintained by such employer gives in respect
of the person employed by him the necessary particulars required to be shown in Form G/H/I to
be maintained,
(c) Failure to maintain records—if single offence
Under sub-sections (2) and (3) of section 33 of the Act read with the rules framed thereunder,
the occupier of any shop or establishment is under an obligation to keep a record of the hours
worked, the amount of leave taken by end of the intervals allowed for rest and meals to every
person and particulars of all employment overtime as also to keep exhibited notices setting forth
the number of hours in the week and such other records and registers as may be prescribed and
display such other notices as may be prescribed.
37. Powers and duties of the Inspector: (b) Duties of the Inspector : (i) that in dispensing with the services of an employee the provision of the Act and Rules have been complied with and no dues payable under the Act or Rules have been withheld;
41. Wilfully making false entries.
{ Companies post salary in expenses, and if it has not paid salary but posted, it is false entry…..}
Along with appointment letter company must have issued slip for all months, PF number, ESIC Card (Wage ceiling has been raised to Rs.15000/pm), Group Insurance etc………….
If not complaint can be made to RPFC in o/o PF commissioner, directory is available at:
www.epfindia.gov.in
and ESIC office.
----------‘THE PAYMENT OF WAGES ACT, 1936”
2. Definitions:
(ii) 4*["industrial or other establishment" means]………..
8*[(h) any other establishment or class of establishments which the Central Government or a State Government may, having regard to the nature thereof, the need for protection of persons employed therein and other relevant circumstances, specify, by notification in the Official Gazette.]
3*[(vi) "wages" means…………..
all remuneration (whether by way of salary, allowances or otherwise) expressed in
terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes-
(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;
{You may lodge a complaint with Wages Inspector}
3. Responsibility for payment of wages.
4. Fixation of wage-periods.
5. Time of payment of wages.-
6. Wages to be paid in current coin or currency notes.- All wages shall be paid in current coin or currency notes or in both:
5*[Provided that the employer may, after obtaining the written authorisation of the employed person, pay him the wages either by cheque or by crediting the wages in his bank account.]
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.
{ Implying pay slip should not be only issued but signed by employee and record be maintainewd for 3 years}
(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.]
15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.-
16. Single application in respect of claims from unpaid group.-
17A. Conditional attachment of property of employer or other persons responsible for payment of wages.-
You may approach a labor consultant/service lawyer at your location, show all of your documents, give inputs in person, and proceed under expert advice of the lawyer.
