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Hardik (Asst Manager)     27 November 2012

Salary non-payment - it company in mumbai

Hi,


I used to work with an IT Company based in Mumbai.

Joining Date - 09-Dec-2011

Last Working Date - 21-Aug-2011

Salary Not paid since - Mar 2011

Months Salary Not paid - Nearly 6 months

Relieving Documents - Collected

Post resignation, I have repeatedly contacted them, and have recieved response from the official mail id's of the Assistant VIce president and HR head, about salary payment, they are just giving new dates each time...but no pending salary has been credited during this period.


Issue isn't related only to me, but across the firm, nearly 100 employees havent been paid salary during this period. They claim weak financial position for non-payment.


I wish to take legal action against the firm now...for the same i seek guidance, as I have no idea as to how should i proceed regarding the same, and being a layman I am scared about approaching the court and its consequences to my career in future...


My Queries:

1. Whom to approach - Labor Court or Civil Court

2. Supporting Documents required - Like Joining letter, payslips, reliving letter, mails informing dues pending?

3. Penalty - Can I claim interest, harassment charges, legal expenses etc

4. Speed - How much time will it take for the matter to settle

5. Contacts of Lawyer Firms or Lawyers

6. Anything else, which is necessary or required as per your experience

Thanks in advance for your response and looking forward for an helpful and an encouraging response.


Warm Regards,

Hardik



Learning

 2 Replies

Kumar Doab (FIN)     27 November 2012

Now you may submit a carefully structured representation under acknowledgment to good offices of your appointing authority, MD, CEO, Company Secretary and narrate all previous representations, and conclude that you are left with no other option to write to good offices to seek relief by payment of due wages and all payouts { provide list with all details}.

State of Karnataka has ended blanket exemption granted to IT companies from the provisions of standing orders. You may check if state of Maharashtra has also done so.

The authorities can inform you on this and you can peruse RTI route as well.

As per provisions of Industrial Employment Standing Orders Act company should provide FNF payment and Service Certificate on last day in office or within 2 days.

 

In a given situation employee can invoke the provisions of ID Act, IESO Act, Payment of Wages Act, SE Act as per explanation of employee under the provisions of these enactments or approach civil court. Designation alone does not decide that employee is a workman or not.

Has the company declared itself bankrupt or has it applied for closure. You may need to check on this.

The question arises what steps company has taken to downsize it s expenses and fetch business. Has it lowered and controlled the huge pay package of senior management/stopped salary as well. Or it has still retained the VP-HR, Legal cell just to subdue the employees and check legal action by employees.

 

--IT companies are within the preview of SE Act. Bombay SE Act is enclosed. You may log onto web site of Dept. of Labor Maharashtra and access the contact details of Labor Officials and latest version of SE Act {or buy it from market}.

SE Act Bombay:

2.  Definitions.-In this Act, unless there is anything repugnant in the subject or

context,-

(7)  "Employer"   means   a   person   owning   or   having   ultimate   control   over   the

affairs of an establishment;

(12) "Inspector" means an Inspector appointed under section 48;

(16) "Manager" means a person declared to be a manager under section 7;

 

   (21) "Prescribed authority" means the authority prescribed under the rules mat

under this Act;

   (22)    " Register     of   establishment"      means     a   register  maintained       for  the

registration of establishments under this Act;

   (23) "Registration certificate" means a certificate showing the registration of an

establishment;

7. Registration of establishments.(1) Within the period specified in sub-sec-

tion  (4), the employer of   every  establishment   shall  sent  to the  Inspector of   the

local area concerned a statement, in a prescribed form, together with such fees

as may be prescribed, containing-

(a) the name of the employer and the manager, if any;

(b) the postal address of the establishment;

(c) the name, if any, of the establishment;

9.   Closing       of  establishment         to   be   communicated          to   Inspector.-The

employer   shall,   within   ten   days   on   his   closing   the   establishment,   notify   to   the

Inspector in writing accordingly. The Inspector shall, on receiving the information

38.    Aplication and amendment of the Payment of Wages Act.

^[ЗВ-В.  Application   of   Industrial   Employment   (Standing   Orders)   Act   to             .

establishments.-The provisions of the Industrial Employment (Standing Ord

51.   Employer        [and     manager     to    produce       registers,    records      etc.  for

inspection.

55. False entries by employer and manager.-

58.  Determination   of   employer   for   the   purpose   of   this  Act.-(l)   Where   the

owner of an establishment is a firm or other association of individuals, any one of

the   individual   partners   or   members   thereof   may   be   prosecuted   and   punished

under   this   Act   for   any   offence   for   which   an   employer   in   an   establishment   is

punishable:

69. Right and privileges under other law etc. not affected.- Nothing in this

Act shall affect any right or privileges which an employee in any establishment is

entitled to at the date this Act comes into force in a local area,

---Company might have had its office in IT Park/SEZ and in such a case IT policy of the Govt. may also be studied for exemptions granted to company.

 

--The old employees who have completed 5 years might also like to stake a claim of Gratuity.

3. Notice of opening, change or closure of the establishment

     4. Display of notice.-(

It shall be appropriate to approach a competent and experienced service lawyer/labor consultant with copies of all of your documents salary slips emails etc and give inputs in person and proceed under expert advice of your lawyer. Your lawyer shall evaluate the merits and may opine that you fall within the category of workman.

Company may yield to legal notice of your lawyer or you may have to agitate in the appropriate forum. Company may yield to your demands during conciliation proceedings in o/o ALC or the ALC shall issue reference to Labor Court.

All employees may join hands and may approach lawful authorities at their respective locations. All employees may jointly approach a competent lawyer and this shall reduce the legal support expenses also. Trade Unions in Maharashtra are quite strong and good and effective trade union leaders can be of moral, professional help and guidance. Let the company run from pillar to post. Obtain information on all assets of company and promoters and their worldly assets and report to authorities.

Based on facts employees may succeed in filing for Criminal Breach of Trust and pull the employers to a forum where they end up paying salaries with damages.

Litigation may take its own time however since all employees of the company are affected authorities and courts may take notice for speedy delivery of justice. Your lawyer can comment better on this once all docs and facts are examined by your lawyer.

If you consult LCI lawyer you can conduct lawyer search at:

https://www.lawyersclubindia.com/lawyers_search/#.ULR1VO8yzvo


Attached File : 589762034 the bombay shops establishments act.pdf, 589762034 karntaka now applicability%20of%20standing%20order%20to%20it%20industries.doc downloaded: 235 times

Hardik (Asst Manager)     27 November 2012

Thanks Mr Kumar....

I am not sure, I understand everything you said...but I get the point that there is legal recourse available for me...

Are you a lawyer yourself?

Currently leaving for work, so will read in detail and then ask related queries..

Have a nice day!


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