Non payment of salary
Bhargav
(Querist) 05 September 2015
This query is : Resolved
Sir,
I am working in a cement company as an Executive, located in Guwahati, Assam. We didn't get our monthly salary in time, on current date we have received the salary for the month of April 2015. Earlier it was 2 month baclog salary but now it has been raised to 4 months which is hard to bear. While giving appointment they have not mentioned about this matter to us, I can show you my appointment letter if required. Moreover they deduct our salary for late coming at office. We have to punch while entering in office premises & exit from office premises and the timing is fixed to sharp 9:30 am to 7 pm. If anybody late even by 9:31 am for 7 days in a month then they deduct 1 day salary, for 10 days 2 days salary, for 13 days 3 days salary & for 15 days 5 days salary deducted. If we have to leave the company then we have to give 2 months notice period otherwise we will not get those 2 months salary. We have also requested and write a letter to CMD & MD of the company about the financial condition of the employees due to non receipt of salary in time but they totally ignore it & held few of us for writing this type of letter.
Request you to help & guide me so that we can get back our salary and relieve from this hell.
Waiting for your feedback!
Thanking You
Kumar Doab
(Expert) 05 September 2015
You have posted that:
"I am working in a cement company as an Executive"
You may elaborate what is your designation and nature of duties and do you have any power to sanction (not just recommend) leave/increment/appoint/terminate................and can your recommendation be cancelled/altered/amended by anyone above you?
Between 9.30am - 7pm How many breaks of how much time are given?
Does the company issue salary slip and show the deductions in it?
The delay in salary and deductions are from top to bottom or only white collored employees?
Ideally the delay in salary is breach of trust and in such situation the T&C like notice period/pay should loose its sanctity.
Are all of the affected employees at all levels are united?
Do you have any other suitable employment in hand?
Rajendra K Goyal
(Expert) 05 September 2015
The Company seem to be in financial difficulty, try to switch over.
Bhargav
(Querist) 05 September 2015
Sir,
My designation is Executive (Finance & Accounts) and I look after the banking transaction department of the company like doing NEFT, RTGS, making entry in the system for the transaction. I dnt have any power to make or give sanction, I have to report to my AGM for my work & for leave. There is a 45 min break which is for lunch. Yes, the company issue salary slip to all the employee's & the deduction is for every employee. The deduction is not shown in the salary slip but they deduct it from basic salary, ultimately which affect the net salary. The delay in salary is for all employee i.e from top level to bottom level except of those who are casual like peon i.e grade 4. No, all the employee's are not united, some senior employee fear that they will loose their job if they raise voice against non receipt of salary and at this age they will not be able to get any suitable job. I m trying to switch over to a new job but there is lack of job oppurtunity in north eastern sector.
Bhargav
(Querist) 05 September 2015
Goyal Sir,
The MD & CMD of the company have lot of black money and they can easily sort out the issue if they want. They withdraw lot of cash from the company account for their personel expenses, recently they have purchases land & building worth Rs. 5 Crore. Most of the company come to do business in north-eastern sector only for the subsidy purposes.
Bhargav
(Querist) 05 September 2015
Goyal Sir,
The MD & CMD of the company have lot of black money and they can easily sort out the issue if they want. They withdraw lot of cash from the company account for their personel expenses, recently they have purchases land & building worth Rs. 5 Crore. Most of the company come to do business in north-eastern sector only for the subsidy purposes.
Bhargav
(Querist) 05 September 2015
Goyal Sir,
The MD & CMD of the company have lot of black money and they can easily sort out the issue if they want. They withdraw lot of cash from the company account for their personel expenses, recently they have purchases land & building worth Rs. 5 Crore. Most of the company come to do business in north-eastern sector only for the subsidy purposes.
malipeddi jaggarao
(Expert) 06 September 2015
Mr.Bhargav, it is private organisation. Your only grouse should be late payment of salaries. Do not concentrate on other things. If you can bear the late, better you leave the company at the earliest possible time. There is no need for you to look into their transactions and make them public.
Rajendra K Goyal
(Expert) 06 September 2015
The MD. DMD would not bring their black / white money in the account of the company. There exist no reason for it.
Kumar Doab
(Expert) 06 September 2015
Each deduction has to be shown in salary slip.
Your position may be covered by the def. of 'Workman' as in ID Act.
Your office/div might be covered by (Name of the state) Shops and Estabs Act and you might be covered by def. of 'Employee' as in (Name of the state) Shops and Estabs Act. This state Act of majority of the states does not discriminate between ‘Workman’ and ‘Non workman’.
You are working for 8.45hrs/day=52.5hrs/week, hence eligible for OT @ double the wages.
If your wages are as per def. of wages in Payment of Wages Act upto Rs.18000/pm then you can stake claim under this Act as well. This Act does not discriminate between ‘Workman’ and ‘Non workman’.
You can approach any of the authorities including highest officials of the Dept. of Labor and also Employee’s/Trade Unions……………….
Unpaid wages are debt on employer and winding up petition can be filed and also complaint u/s 406,420 can be filed.
Obtain POD of letter written by you to company.
If you have got the evidence of siphoning off the funds retain it.
If the directors are heading the company towards closure/bankruptcy then this evidence shall help you.
Certainly it is futile to work for such employers.
Apply any of your resource and skills to get your unpaid amounts.
In case of closure it is time consuming to get the monies.
You may go thru:
http://www.lawyersclubindia.com/forum/Company-in-liquidation-77247.asp
Bhargav
(Querist) 06 September 2015
Thank you sir.
P. Venu
(Expert) 06 September 2015
What is your real problem - non-receipt of salaries or deduction of wages for late coming?
Bhargav
(Querist) 07 September 2015
Venu Sir,
The main issue is both. When you are not paying salary to your employee at regular interval of time then what is the point of making such strict rules & regulation inside the company. It clearly shows that they use us as a slave. After various reminder to the MD & CMD they totally igonre the matter and give warning to those employee who take initiative for writting letter to them. On current date we have received the salary for the month of April 2015. They told us on 27th of August that they will provide us the salary for the month of May 2015 on 31st August 2015 but till date there is no sign of payment of salary.
Kumar Doab
(Expert) 07 September 2015
The deductions or penalties are well defined in enactments e.g. that have been mentioned above.
The employer can not deduct as per its whims and fancies.
You may form employee's unions/IC/GRC/Works Committee and affiliate with trade unions.
The employee can lodge a complaint the moment the payment of earned wages is delayed by even day and employer can be penalized say by Rs.7500/instance.
If employer is resorting to some imaginary deductions /penalties then you can also demand interest on delayed wages say @ ROI charged by local Sahookar (Moneylender or by CC companies e.g. 3.75% per month).
However make up your mind and do only those things that suits your situation and aptitude,............................BUT build favorable written record and evidence for use at appropriate time in appropriate forum.
Bhargav
(Querist) 08 September 2015
Sir,
If I suppose to write a letter to Ministry Of Labour & Employment then what documnets I should provide to them so that they can put a enquiry on the company?
