Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Retrenchment & non payment of salary, gratuity etc

(Querist) 25 November 2016 This query is : Resolved 
This is the case of a public limited company, where payment towards salary to employees is irregular during last 3 years and as of now 6 months salary is pending. EPF contributions not remitted for past 8 months. Full & final settlement of employees left/terminated earlier are still outstanding.

Now the company voluntarily terminates some employees (forced resignation) and offering some of them an employment on contract basis for 2 days duty per week at 40% of current CTC as professional fees.

But they do not commit any date for payment of salary dues, gratuity, EPF & full & final settlement.

Kindly suggest what are the options available for such employees who have served for the Company for last 20 -30 years. Also please mention relevant sections/clauses of applicable laws.
adv.bharat @ PUNE (Expert) 26 November 2016
You can file application for non payment of salary, gratuity,EPF, or settlement amount if removed with out intimation.

Will u appreciate this answer by giving like on my LCI Profile?
Rajendra K Goyal (Expert) 26 November 2016
Collective action may fetch better results.

write to labor department.

Lodge complaint with the regional EPFO.

Liquidation proceedings may be filed in High court.

Discuss in detail with local lawyer.
Kumar Doab (Expert) 26 November 2016
Do you have evidence of forced resignation?

Has company obtained mandatory insurance of Gratuity from say; LIC?


All employees may unite and approach appropriate forum e.g; O/o Labor Commissioner, EPFO, Controlling Authority of Gratuity, Inspector appointed under Payment of Wages Act.........etc
R.K Nanda (Expert) 26 November 2016
nothing to add more.
SUDHAKARAN V T (Querist) 26 November 2016
Thank you all for your valuable comments.

If any employee do not resign , the company will retrench them and there will be remark in the service certificate.

If Company terminates what should the first step to be taken by such employees?
Kumar Doab (Expert) 26 November 2016
Ask your counsel specializing in Labor/Service matters about possibility of stay on termination.
Dr J C Vashista (Expert) 28 November 2016
You are required to raise an industrial dispute for the "workmen" claim their salary and other outstanding amounts u/s 33 of ID Act.

Issue legal notice for and on behalf of all the workmen/employees collectively.

Lodge a police complaint.

Consult/rope in a local senior lawyer for proper guidance.
SUDHAKARAN V T (Querist) 28 November 2016
thank you very much
Rajendra K Goyal (Expert) 28 November 2016
You are welcome.
Kumar Doab (Expert) 28 November 2016
The employees did not get salary from this employer.


How can they be sure of fees?


The only motive seems to be to keep experienced hands with employer.



There is NO ceiling to approach the Labor Court/Tribunal, however it is not advisable to delay.






You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :