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Niranjan (Senior Lead Engineer)     02 April 2013

Settlement not given after resignation

I resigned from my previous employer in June 2011, but I haven't received my settlement including the last month salary and earned leave encashment which sums upto Rs. 40,000. I had been trying to get this from my ex-MD (employer) but there is no proper or firm response from him so far. What I have is the declaration made by the MD on the money he owes me in writting. Please let me know how can I recover that amount with the due compensation for having dragged this for almost 2 years, What should I do legally to get justice?



Learning

 20 Replies

Advocate M.Bhadra   02 April 2013

Send a legal notice to the said company to claim your dues, if they would not comply then file a case in Labour Tribunal in your State.

Kumar Doab (FIN)     02 April 2013

It is felt that until or unless you are a workman the limitation period to realize yur money is 3 years.

 

You may act as ap.

What is your establishment: a Govt. company/PSU/Industrial Establishment/ commercial establishment……?

You are in which state?

In which state is redg. office /HO of the company?

The company must have displayed its registration certificate near entrance/on notice board.

 

You have posted that:

--‘ I had been trying to get this from my ex-MD (employer) but there is no proper or firm response from him so far.’

Do you have copies of the communications (and POD) you have sent in writing, bills of phone calls made by you, and communications you have received from your employer?

 

You may narrate all representations made by you till date, mentioning phone numbers/dates/minutes of discussion/emails/letters/name-designation-dept-address of the company personnel and demand that your dues ( provide itemized detail, include paid leave, Gratuity, incentives, reimbursements etc…) by bank DD, along with acceptance of resignation, correct FNF statement, Form 16 as per correct FNF statement, PF number, attested copies of PF transfer forms, PF account slips, service certificate, relieving letter, NOC/NDC etc be supplied to you by redg. post only so as to reach you in next say…15 days or you shall be constrained to proceed legally as the cost and consequences of the company…  Yu may title this letter as NOTICE, and send thru redg. post.

Yu may mention that a postage prepaid self addressed envelope is attached for sending the payment by bank DD and documents by redg. Post only to you.

 

--- Designation alone does not decide employee is a workman or not. Your lawyer may ask you a set of structured questions and may opine that you fall within the category of workman. Labor laws applicable to workman limit the choice to employer.

In addition to the Industrial Disputes Act, 1947, several states also provide for compliances under the Shops & Establishment Acts, Standing Orders Act, ……. If the employee falls within the definition which has been provided under these enactments, then the employee would be protected up to that extent.

-------If the IESO Act is applicable to your company and company has its certified standing orders extended to your designation, you may refer to these. If standing orders are not certified, model standing orders shall apply.

As per IESO Act/Model Standing Orders the dues to the employee/service certificate should be handed over by the close of office hours on the last day in office……..

 

>Model Standing Orders;

11.          Payment of wages, 13.        Termination of employment,  16.      Certificate on termination of service,  17.               Liability of 17[employer].,  18.            Exhibition of standing orders.--

 

----- Refer to Shops and Establishments Act as applicable to your state.

The SE Act does not indiscriminate between workman and non workman and is applicable to all employees.

e.g: The Delhi Shops and Establishments Act,

 

2.  DEFINITIONS.

(7)  “employee” means a person wholly or principally employed, whether directly or otherwise, and whether for wages (payable on permanent, periodical, contract, piece-rate or commission basis) or other consideration, about the business of an establishment and includes an apprentice…………

19.  TIME AND CONDITIONS OF PAYMENT OF WAGES.

(3) The wages of every employee in any shop or establishment shall be paid on a working

day before the expiry of the seventh day of the last day of the wage period in respect of which the wages are payable.

(5) Where the employment of any person is terminated by or on behalf   of the employer, the wages earned by him shall be paid before the expiry of the second working day after the day on which his employment is terminated.

 

21.  CLAIMS RELATING TO WAGES

30. Notice of Dismissal.

COMMENTS

(a) Applicability of section 30

The protection of the provisions of the section is available to all persons who fall within the definition of the term “employee” as given in section 2(7) of the Act and who have put in three months’ continuous services.  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 at Delhi are covered by section 30(1) of Delhi Shops and stablishments Act, 1954

 

37.  POWERS AND DUTIES OF INSPECTOR.

COMMENTS

(b) Duties of the Inspector:

(h)  that the wages and other dues are being paid to employees in time as required under

the Act;

(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;

---- THE PAYMENT OF WAGES ACT, 1936 (applicable to all employees with wage ceiling up to Rs.18000/pm):

2. Definitions.

3*[(vi) "wages" means……

(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;

It shall be appropriate to approach a competent and experienced labor consultant/service lawyer specializing in such matters and show job advertisement, interview call letter, selection letter, offer letter, appointment letter, communication of the company appreciation letters, resignation letter, resignation acceptance letter, letter of the MD, spend quality time with your lawyer, give inputs in person, understand the merits and proceed under expert advice of your lawyer.

 

Your lawyer may opine that based on letter by MD you can a complaint with police under sec 406,420.

 

Valuable advice of learned experts/members is sought.


Attached File : 342436341 payment of wages act 1936.pdf downloaded: 291 times

Sudhir Kumar, Advocate (Advocate)     03 April 2013

well elaborated by Mr Doab

Sudip (Sr Software Engg)     03 April 2013

 

I would like to draw yours attention on a matter of a company "Navigators Software Pvt Ltd - 86 A Topsia Road, Haute Street, 205/206 Room No, Park Circus, Kol - 46". This company is regulating cheat employment policies and fake regulation on their services. 


1. After resigning from the post of Tech Lead haven't received my 2 months notice period salary dues + PF - though they have forced me to sign on a document that i have received my all dues with an oath that I will receive it in next 7 days. But almost a month is completed without any payment clearances.


Not only that - 


2. They company is very unprofessional in behavior - Not providing document of joining, confirmation of employment.


3. The company officials uses very slang languages to the employees.


4. This company is not able to maintain a good relation with the foreign clients - Delaying the projects, asking for more money to the clients, unable to deliver the projects etc.....


5. Not tracking any records of work.


6. Insulting behavior.

 

7. Also the company is not funding in the PF account properly, after 1 year 3 months I have noticed that my PF amount is not credited in the PF account.


Please do provide me the way so that I can receive my due payments back.


Regards,

Kumar Doab (FIN)     03 April 2013

@ Sudip,

Always start a new thread.

You may show all documents to elders in the family, competent and experienced well wishers, trained legal mind, union leader, lawyer/law firm and you will easily understand all points.

You have posted that:

 

---“though they have forced me to sign on a document that i have received my all dues with an oath that I will receive it in next 7 days. But almost a month is completed without any payment clearances.”

 

The time for payment of FNF dues is usual Pay day.

The company might have obtained signature on advance receipt.

Did you keep a copy?

But you must write to appointing authority/MD/Chairman (preferably by redg. post) now that although advance receipt was sent to you with declaration to supply payment in next 7 days, but no payment and copy of FNF statement signed by you has been supplied to you.

 

 

---“They company is very unprofessional in behavior - Not providing document of joining, confirmation of employment.”

 

West Bengal Shops & Establishments Act:

 

 

14. Payment of recovery of wages

 

15. Notice of termination of service .- 

 

18. Persons employed to be furnished with letter of appointment .- Every shop-keeper or employer shall furnish every person employed in his shop or establishment with a letter of appointment in such form as may be prescribed. 


 

---For PF you may lodge a complaint in writing by letter under proper acknowledgment with local o/o PF commissioner, and meet RPFC in person and chase and follow up thru RTI.

 

---You may check if state of West Bengal had granted any exemption to IT/ITES companies from Industrial Employment Standing Orders Act.

It is felt that states of Karnataka, Tamil Nadu, AP, Orissa, Rajasthan, Madhya Pradesh, Haryana had granted such exemption out of which Karnataka has already issued orders for submission of draft standing orders within Dec, 2012 for certification by Mar, 2013.

So west Bengal might have not granted such exemption.

 

 

If no then you may check if standing orders would be applicable to your company.

If applicable but if company does not have certified standing orders, model standing orders shall apply.

Your lawyer may ask you a set of structured questions and may opine that you fall within the category of workman. If yes you may look into:

 

Model Standing Orders;

11.          Payment of wages, 13.        Termination of employment,  16.      Certificate on termination of service,  17.               Liability of 17[employer].,  18.            Exhibition of standing orders.--

 

 

 

 

---For FNF dues you can peruse with company and lodge compliant with Inspector under SE Act West Bengal, o/o Labor commissioner, Wages Inspector under THE PAYMENT OF WAGES ACT.

You may obtain their contact details from o/o labor Commissioner, Dept of labor website of your state.

 

In case of any difficulty you may approach your lawyer.

 

Trade Unions are quite active in your state and all employees in IT sector may unite like in some of the states e.g. Karnataka.

 

West Bengal Information Technology Services Association (WBITSA): This union is floated by CITU (Centre of Indian Trade Unions- the trade union wing of the Communist Party of India (Marxist)- the ruling party in West Bengal).

 

"A union for IT workers is the urgent need of the hour. I would call the IT professionals 'the labourers of the information age.' They toil long hours; they work at night; and some of them still get meager salaries. So a labour union for them would help fight for their rights," CITU president M K Pandhe told………..

 

There are other forums e.g:

'IT Professionals Forum.' (https://www.itpfindia.org/in).

 


Attached File : 342537438 20 20 ws shops and establishments act 1963.doc, 342537438 challenges for organising bpo workers in india.doc, 342537438 union and it sector real-time-chap-03.pdf downloaded: 215 times

Kundan   11 January 2016

Hi,

 

My name is Kundan, i worked with some company in 2008-2009, coz of some issue i could not serve the notice. I did ful and final with company however aftre full and final company they gave me setttlement letter and mentioned "ebsconding" in that letter.

My issue is even after giving payment to company they gave me such settlement letter and now I cannot show this letter to any company, it will lead a negative impact on my new employer.

 

Please sugest what should i do, i got a very good offer from but they are asking about that company's experience.

I can understand that i will not get experience letter as i could not serve the notice however after clearence of dues atlest they should not give me such negative settlement letter.

Please suggest.

Regards

Kundan Mandawat

8860222204

Kumar Doab (FIN)     12 January 2016

The employees that do not form unions, are not members of unions, do not conslut Labor Law consultants well in time are ill informed and are taken for ride by unscruplous employers and their personnel in Line Management/HR/Leagl cells.

 

The detailed discusson as above in this thread shall address your concerns too.

 

Have you consulted an albor law consultant? If yes what is the opinion of your own counsel?

 

If employee has served notice of resignation (under proper acknowledgment) and has served notice period in full/ or in part /or not at all then has resigned then employee has not absconded at all.

If company has provided for notice pay in lieu of notice period in appointment letter/service conditions/service rules and regulatiosn etc and /or if enactments provides for r notice pay in lieu of notice period, then employee can resign without notice period and employer can adjust notice pay.

 

In your case you were made to pay notice pay, implying there is no breach by you.

 

Did the employer supply FnF statement showing adjustment of notice pay?

 

Apparently you have not absconded at all!

 

You may entrust the matter to ana ble counsel if you are unable to resolve on your own.

 

 

Kundan   12 January 2016

Hi Team, Thanks for your revert, as you mentioned i have given resignation before leaving and also paid 4600 Rs to company as asked by them. Still they gave me absconding letter. Please suggest me next step. My next company asking about experience letter or settelment but i cannot show them such absconding settlement letter. Please suggest. Regards Kundan Mandawat 8860222204

Kumar Doab (FIN)     12 January 2016

How did you paay notice pay: cash/Cheque/DD? Do you have the reciept and does it mention notice pay?

 

You have grossly erred in dealing with past employer.

Now you have the option (if you are confident) to explain and convince your next emplyer that you did not abscond at all and since you did not serve notice period you npaid notice pay (show reciept) and as per company's internal/private  policy, the concerned HR personnel declared absconder, arbitrarily.

 

You need to write and explaint to the HR/MD of past employer that 'Comment ;Absconder' is false and is killing your employablity and source of livelihood, and they should imediately erase such comments from all internal records and supply you another letter without such comments.

 

You may mention your achievements/appreciations/awards/performance/incentives etc (if any).

 

YOu may consult an able counsel specializing in labor matters.

 

.

 

Kundan   13 January 2016

Hi, I paid the amount through DD. And as per their mail it was settlement amount which i need to pay. I will check if i still the receipt but yes i have the settlement letter which they sent me after payment. In settlement its mentioned that i have cleared all dues with company, no dues are left and status of leaving is absconding. I am sending mail from last 3 days but there is no response from their end. Now i want to take legal action I have all the communication mails with that company. Please let me know the procedure to take action and fee amount. My contact no is 8860222204 Regards Kundan

Kundan   13 January 2016

Hi, I paid the amount through DD. And as per their mail it was settlement amount which i need to pay. I will check if i still the receipt but yes i have the settlement letter which they sent me after payment. In settlement its mentioned that i have cleared all dues with company, no dues are left and status of leaving is absconding. I am sending mail from last 3 days but there is no response from their end. Now i want to take legal action I have all the communication mails with that company. Please let me know the procedure to take action and fee amount. My contact no is 8860222204 Regards Kundan

Kundan   13 January 2016

Hi, I paid the amount through DD. And as per their mail it was settlement amount which i need to pay. I will check if i still the receipt but yes i have the settlement letter which they sent me after payment. In settlement its mentioned that i have cleared all dues with company, no dues are left and status of leaving is absconding. I am sending mail from last 3 days but there is no response from their end. Now i want to take legal action I have all the communication mails with that company. Please let me know the procedure to take action and fee amount. My contact no is 8860222204 Regards Kundan

Kumar Doab (FIN)     13 January 2016

You are hinting as if you have entered into some settlement with employer and have agreed that you alone are liable to pay some amounts to employer, and employer has nothing to pay to you.

The communications before this settlement payment made by you should also be examined.

 

Did the employer charge you for some loss due to not serving the notice period and demand compensation/liquidated damages?

 

You may demand to supply you the FnF statement showing all payables by company to you and by you to company and show the notice pay tendered by you.

 

Ask the fee from counsel engaged by you.

 

 

 

Kundan   13 January 2016

Hi, thanks for your response. The amount asked by company was not for the notice period. Its was just settlement to claim PF amount. Its strange but true i could not withdwarl my pf, for that also i need to pay the amount. Please suggest a good lawyer and fee so that i can move further. I am worried that even after payments of dues i didnt get my settlement letter in positive way.

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