Are companies allowed to delay salaries of employees??

In Pepsi Foods Ltd. & Others v. Bharat Coca-Cola Holdings Pvt. Ltd. and Ors. 1999 LLR 1027 (Del.) the

enforceability of a negative covenant restraining employees from engaging or undertaking employment with any competing company for 12 months after they have left the service/employment came up for consideration. The Court recalled the well settled law that such post termination restraint, under Indian Law, is violative of Section 27 of the Contract Act and proceeded to hold on that basis that such contracts are unenforceable, void and against the public policy.

The Court in unambiguous terms posited that the rights of an employee to seek and search for

better employment cannot be restricted by an injunction and if such injunctions are granted it would almost be a situation of 'economic terrorism' or a situation creating conditions of 'bonded labour'. It was pointed out that freedom of changing employment for improving service conditions is a vital and important right of an employee and the inter-changeability of service is an accepted norm of Service Jurisprudence which cannot be curtailed by a Court injunction. It was further pointed out that it is impracticable and unrealistic to artificially create a situation by a Court injunction when employees would first leave the employment and then look for better service conditions and job opportunities elsewhere. Upon a consideration of the above premises, the Court declined to issue an injunction.

Which means the bond itself is illegal. 

The bond is not enfoceable, especially, it is the Company who has violated the terms of the bond. Implied terms for compliance for a Company under the bond, is to ensure payment of remuneration for the service rendered in due course.

Vasudevan

Mr. Chandrasekhar, Mr. Vasudevan has given valuable advice. Kindly follow it.

The company wants to retain for 5 years without any appraisal for incremental increase in salary/wages even on annual basis leave apart whenever there is price rise.

The payment of Min wages act: VDA is linked to Base CPI and current CPI.

It is simple as that employee is reduced to bonded labor.

Whenever the landlord wishes he shall pay some thing.

Payday is fixed. Refer to Payment of Wages Act, IESO Act/Standard standing Orders, Shops and establishments Act, Factory Act………………

Company should be declared unworthy of being employed with.

Keep and maintain record of revenues and profits generated by you.

It shall be worthwhile to submit your grievances in writing under proper acknowledgment in concise and precise manner to appointing authority, MD, and the personnel who have signed on bond on behalf of the company and build favorable written record.

Does the company provide pay slip? Demand it and confirm the date of payment of wages.

If you are contemplating to separate it shall be appropriate to approach a competent and experienced labor consultant/service lawyer, in advance, show all of your documents, give inputs in person, understand the merits and proceed under expert advice.

If you wish to resign, submit proper notice of resignation, serve notice, handover charge under acknowledgment and complete the exit formalities.

Prefer redg. post and avoid speed post/courier.