1. Under the new Code of wages, 2019, after the resignation of an employee from the service, all the dues of the employee have to be mandatorily be cleared within two working days of his resignation. Whereas, your employer has not cleared your dues even since 31 Mar 23 i.e when you left your job. This is a clear-cut violation of statutory provisions of the Code of Wages, 2019.
2. Typically, the employee should start by sending a formal legal notice to their former employer, requesting payment of the unpaid dues. If the employer disregards this notice, the employee has the option to initiate legal action against the company.
3. Serve a Notice to HR and Management -Before escalating the matter to court, it's advisable to issue a formal notice to the HR department and company management. This notice will bring their attention to the pending dues and allow them to address the situation without legal intervention.The following aspects of the legal notice are important.The documents that would be required for sending the legal notice. These are as under :-
- A Copy of the Employment Contract.
- A Copy of the Bank Statement.
- A Copy of Appointment Letter.
- The details of all additional Benefits and Perks.
4. Under the Code of Wages, 2019 any worker in a supervisory role who draws more than Rs 15,000/-has been excluded from the definition of worker whereas in the definition of employee, there is no threshold of salary.
5. In the Industrial Relations Code 2020, under the new definition of worker in sec 2(zr), working journalists, sales promotion employees, and employers in supervisory roleswho earn less than Rs 18,000/- are covered.
6. Lodge a Complaint with the Labour Commissioner: (If yoursalary/remuneration is less than Rs 15,000/-in terms of the Code of Wages 2019 or less then Rs 18,000/- as per the Industrial Relations Code 2020 coupled with the nature of duties performed by you).
7. If the salary is more than Rs 15,000/- and Rs 18,000/- ( as discussed above in Para 6), file a summary suit under Order 37 of the Civil Procedure Code at the District Court. Once the suit is filed, a summons will be issued, giving the employer a 10-day window to respond in court.
8. If the employer neglects to appear, the decision typically favors the employee. It's crucial for the employee to have verifiable evidence of their employment and to ensure the lawsuit is filed within three years from the due salary date.
9. As regards, your employer askingyou to sign the appointment letter with clauses like you cannot join the competition company for one year is legally not sustainable due to under mentioned reasons :-
(a) Section 27 of the Indian Contract Act-1872 provides that,every agreement by which anyone is restrained from exercising a lawful profession or trade or business of any kind, is to that extent void. Normally, in the matter of noncompete clauses, Indian courts have consistently refused to enforce post-termination non-compete clauses in employment contracts, viewing them as “restraint of trade” impermissible under Section 27 of the Indian Contract Act, 1872 (the Act), and as void and against public policy because of their potential to deprive an individual of his or her fundamental right to own a livelihood.
(b) In the case of Desiccant Rotors International Pvt Ltd v Bappaditya Sarkar &Anr (I.A. No.5455/2008, I.A. No.5454/2008 & I.A. No.5453/2008 in CS(OS) No.337/2008), the Honourable New Delhi High Court held that the restrictive covenants were primarily designed to protect its confidential and proprietary information, the High Court ruledthat in the clash between the attempt of employers to protect themselves from competition and the right of employees to seek employment wherever they choose, the right of livelihood of employees must prevail.
10. It is desirable that the fact that in the said notice to your previous company it must be brought on record that their demand of signing the appointment letter on back date with clauses like you cannot join the competition company for one year is legally not sustainable which will have corresponding legal implications for your previous company
