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Rahul (Web Developer)     24 June 2014

Company not clearing my accounts

Hi There

Please help me how to deal with the situation.

I have joined a company based in New Delhi about 6 years back. I have to move to some other location due to some medical condition of my family member. So i resigned from the company with 1 month notice period.

My employment contract says that i have to serve 3 month notice period or give the salary in lieu of the notice.

I am ready to pay 2 months salary as per the contract as i already serve 1 month notice.

I have left the company after serving 1 month notice and move to the other location. Now i am getting calls from the company that I cant left the company as I need to complete the work and I can only move after completing my all work.  

The problem is that the nature of work  is very time consuming and it will take around 4-5 month to complete, because of this they are refusing to clear my dues and funds. Please advice what can i do in this matter. 

my employment contract clearly say that "I have to serve 3 months notice or pay salary in lieu of the notice period."

It never says that ii need to complete the work assigned to me during notice period although I handed over/KT all the work with the concerned employees and I have all the communication regarding these handovers. I am also having the acceptance of the resignation based on the date I  mentioned in the resignation mail.

Please suggest

Regards
Rahul



Learning

 11 Replies

Krishna. Advocate (Advocate)     24 June 2014

as per the contract "I have to serve 3 months notice or pay salary in lieu of the notice period."

It never says that ii need to complete the work assigned to me during notice period

 

Then no problem.no need no complete the work assigned. Claim all the  dues by sendig

 a legal notice to the company . Even then if they don't pay, file a case in labour  tribunal.Thats all.

 

 

Kumar Doab (FIN)     24 June 2014

 

>>> What is this company/establishment: Commercial, Industrial, Small Enterprise?

 

It should have displayed its registration Certificate at a conspicuous place e.g near entrance/on notice board! Or You may find out on your own.

 

 

The Redg. office of the company is in which state?

 

What is its line of business e.g.; IT, banking……?

 

Does the company have any office at Delhi and also in the city or state where you are currently located after resignation?

 

Has the company stated jurisdictional courts in appointment letter in case of dispute and the location of courts is same where you are located or some other location?

 

 

 

How many employees are employed in it?           

 

What was your designation and nature of duties?

 

 

Does anyone report to you and do you sanction leave, increment etc?  

 

Was your service confirmed in writing?        

 

Are you member of any employee’s unions/Trade Unions? 

 

 

Has the company stated break up of salary in offer letter, salary slip and as per breakup and def. of wages as in Payment Of Wages Act (read def.) Is your salary above Rs.18000/pm?

 

 

This info shall help you, hence post it.

 

>>> As posted by you:

---You have acceptance of notice of resignation of 30 days and w.e.f. date of expiry of notice period tendered by you.

---You have acknowledgment of handover/KT.

Hence nothing is left to be done by you.

 

You are eligible for payment of Gratuity and you may write to appointing authority that notice of determination of Gratuity and payment of Gratuity has not bees supplied to you and original FormI is attached.

 

The hidden agenda of the company might be to charge/level allegation of having caused loss and deny Gratuity hence drive the calls carefully and record all calls. 

Record all such calls vide which you are being threatened with fraudulent non payment of earned wages and do speak the address (at least the city and state)  where you are located and that after proper handover formalities as desired by company only, you have shifted from Delhi to……………………….and you were assured in office that payment of your earned wages by bank DD only and due document  shall be supplied to you within next 7 days by redg. post only.

Notice Period of 30 days may not necessarily be applicable in your case.

You may go thru:

 

https://www.lawyersclubindia.com/forum/Notice-period-104062.asp#.U6g-j5SSwb8

 

https://www.lawyersclubindia.com/forum/Denial-of-relieving-letter-service-letter-104351.asp#.U6l9NJSSwb8

 

and other threads mentioned in it, and pick up the points that are relevant to you and demand all payouts and documents as explained in these threads..

 

Rahul (Web Developer)     25 June 2014

Dear Mr Doab

following are the details required :

 

What is this company/establishment: Commercial, Industrial, Small Enterprise?

 Company falls under Not for profit organization 

 

 

The Redg. office of the company is in which state?

New Delhi 

What is its line of business e.g.; IT, banking……?

Involve with many fields

Does the company have any office at Delhi and also in the city or state where you are currently located after resignation?

Yes 

Has the company stated jurisdictional courts in appointment letter in case of dispute and the location of courts is same where you are located or some other location?

NO 

 

How many employees are employed in it?           

about 500 

What was your designation and nature of duties?

IT services 

 

Does anyone report to you and do you sanction leave, increment etc?  

 NO

 

Was your service confirmed in writing?        

Yes 

Are you member of any employee’s unions/Trade Unions? 

NO 

 

Has the company stated break up of salary in offer letter, salary slip and as per breakup and def. of wages as in Payment Of Wages Act (read def.) Is your salary above Rs.18000/pm?

 Yes

 

 

I am having PF,gratuity pending salary and my leave encashments with the company.

 

Please suggest how should i proceed

 

 

 

Regards

Rahul

Kumar Doab (FIN)     25 June 2014

The company has not stated the jurisdictional courts in appointment letter issued to you, it has office at your current location (after resignation) hence your lawyer may opine that you can succeed to agitate at your current location. You can also agitate at Delhi i.e. redg. office location of the company.

The standing orders may apply to the company and if these are certified you may go thru these and if these are not  certified Model Standing orders may apply, you may go thru Sec13-18.

YOU MAY also DOWNLOAD THE HR POLICY/ SERVICE RULES AND REGULATIONS………………………….AS APPLICABLE ON DATE OF JOINING, AND AMNEDED THEREAFTER…………………………and go thru these as well.

 

The IT/ITeS companies are covered by (Name of the sate) Shops and Commercial Establishments Act of the state……………………… An Act to amend and consolidate the law relating to the regulation of hours of work, payment of wages, leave, holidays, terms of service and other conditions of work of persons employed in shops, commercial establishments, establishments……………

 

 

Notice period/pay is part of service conditions and shall apply as stated in this Act………….

 

You may be covered as ‘Workman’ as in ID Act, ’Employee’ as in Shops and Commercial Establishments Act.

You may also go thru:

https://www.lawyersclubindia.com/forum/Notice-period-102337.asp#.U6p58pSSwb8

 

Delhi Shops and Commercial Establishments Act is so employee friendly. You may go thru it and also Delhi Shops and Commercial Establishments Rules…………..:

AS per Delhi Shops and Commercial Establishments Act, too the notice period applicable is 1 month only.

1 month notice period is sufficient on all counts for the employer to put his house in order.

Sec: 30. Notice of Dismissal: (2) No employee who has put in three months’ continuous service shall terminate his employment unless he has given to his employer a notice of at least one month, in writing.

 

(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 Establishments Act, 1954;

 

(d) Section 30 of the Delhi Shops and Establishments Act, 1954 does not exclude the

application of the Industrial Disputes Act, 1947

 

 

37. Powers and duties of the Inspector.

(b) Duties of the Inspector: (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;

 

 

 

>>> You may go thru many threads on Gratuity at:

 

https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.U3W1LkeBmXU

 

>>> If employer defaults on payment of wages it may default on PF,ESIC,TDS etc………..
Employee can approach:

----Employees Unions : There are employees unions that have done good job. There are IT/ITeS employees unions too………………..You can download the details from various threads suggested to you…………..



--- Trade Unions e.g; CITU, AITUC, INTUC ............................
The trade unions are willing to embrace employees and they are very effective too.

--- Inspector under Delhi Shops and Commercial Establishments Act,

The employer has to maintain and submit requisite forms and registers according to Shops and Commercial Establishments Act. If the employer makes false entries it is offence.

You may go thru;

Sec:2(5,7,8,9,14,15,30, and explanations e.g:…Sub Section5),3,5,8,13,19,20,21,30,33,34,35,37,40,41,47,…..

 

--- Inspector under Payment of Wages Act: applicable to all employees drawing wages up to Rs.18000/pm as per def. of wages in the Act. 
You may refer to: Payment of Wages Act; Sec13A and 2: 3*[(i), (ia), 3*[(vi), 3, 4 ,5, 13a, 14, 15, 16, 17A, 20………….. and if the Inspector agrees to cover you he may proceed for recovery of wages.


--- O/o Labor Commissioner: The Labor Inspector might also be officiating as Inspector under Payment of Wages Act, Inspector under Punjab Shops and Commercial Establishments Act, Small Enterprise Act…………………………..however you may lodge complaints mentioning the enactments separately.

----RPFC thru nearest PF office
----ESTC Inspector in jurisdictional ESTC office; Applicable to all employees drawing wages (as per def. wages in the Act) up to Rs.15000/pm.
--- ITO; TDS where you file your ITR


--- CIT-TDS (jurisdictional) where company files ITR
----Lawyer/Law firm

---Civil Court

Employees have been contemplating to file criminal complaints u/s 406, 420……………………………and to approach employer as creditors treating unpaid wages as debt on employer e.g;

https://www.lawyersclubindia.com/forum/details.asp?mod_id=72072011&offset=1#.UvYBGEeBmXV



https://www.lawyersclubindia.com/forum/Full-n-final-settlement-100310.asp#.U0AEW0eBmXU




The employees have even filed Winding Up petitions and have succeeded.

 

>>> IN addition to your unpaid wages you may also demand to supply you the acknowledgment and acceptance of notice/resignation, correct FnF statement for verification and acceptance by you, salary slip of each month of employment, payment of FnF wages by bank DD only, Form16 as per correct FnF statement, PF number a/c slips of each year of employment, ESIC card, service certificate, NOC/NDC, …………etc

 

Let employer reply whatever it wants.

 

 

At Delhi you can access Lawyers par excellence.

 

You may proceed under the expert guidance of your lawyer.              The lawyer that has seen all docs and examined the inputs in person can advice you the best.

 

 


Attached File : 312574445 delhi shops & establishments act, 1954.pdf downloaded: 80 times

Sajal (Asst. Labour Commissioner)     25 June 2014

You may raise an industrial dispute under Sec. 2A of the ID  Act before  conciliation officer at the regional labour office of the jurisdiction of the workplace on the applicability of terms of condition of service. In case of failure of conciliation proceedings the matter may be referred to Industrial Tribunal/ Labour Court.

Sudhir Kumar, Advocate (Advocate)     26 June 2014

non-payment of EPF is not industriual dispute under ID Act.  Seperate forum has been provided for the same under EPF&MP Act 1952.

Rahul (Web Developer)     26 June 2014

Thanks all for the prompt responses.

Please let me know if IT act will applies in my case as the company is not an IT company but I am working for its EDP department.

Is it compulsory to complete the work even after giving a reasonable amount of notice period and during that period company did not take any initiative to complete the work.

am I bound to complete the work even after my last working day and after reminding them verbaly that this would be my last working day

can they threaten me that if work is not completed they will not clear my dues and will create negative record against my profile with internal records of company. as this will create problem for future Background check verification.

 

Please guide

 

Ragards
Rahul

Krishna. Advocate (Advocate)     26 June 2014

Is it compulsory to complete the work even after giving a reasonable amount of notice period and during that period company did not take any initiative to complete the work. ?

am I bound to complete the work even after my last working day and after reminding them verbaly that this would be my last working day

Ans No.Not Compulsory according to your employment contract terms.

will create negative record against my profile with internal records of company. as this will create problem for future Background check verification.?

Yes.May be

can they threaten me that if work is not completed they will not clear my dues and ?

Never.they can threaten.

Rahul (Web Developer)     26 June 2014

again posting the exact wording of my contract 

your employment would be valid for a period of x years with effect from .... date and can be terminated by earlier by either party serving 3 months notice to the effect or paying salary in lieu thereof.

 

how to refuse them as i joined with some other company in new location. should i tell my new compny about this as it may create some issue with new company

 

Regards
Rahul

Kumar Doab (FIN)     26 June 2014

What does IT Act has to do with issues posted by you?

Record all threats (audio/Visual) and build evidence. This is Imp.

In your previous posts you have mentioned that you have evidence of acceptance of resignation, KT/handover………………………..and that you have been reminding about your last day/date in office………………………….The company has never communicated to you about non acceptance of notice of resignation and that you should complete………………………………tasks………………………..

You need to counter the verbal contentions and if you are not able to handle on your own you may approach your lawyer.

This is Imp. as at any point in future be it your next employment or next to next......................................you would need reference check/BGV................................

Once you have recorded your lawyer may opine to submit minutes and caution them to withdraw the statements and refrain from making false entries………………………………………………………Creating False entries is an offence.

 

The Delhi Shops and Establishments Act, 1954: 41. WILFULLY MAKING FALSE ENTRIES.

 

Your lawyer may opine to counter that NO Pending Work is ever left by you……………

Your lawyer may demand certified copy of your ‘Service Card’ and let you examine your ‘Personal File’………………………

Disciplinary Action is mentioned at Clause:35 in Service Card; Form’V’;

You may view it at website of Delhi GOvt.:

https://www.delhi.gov.in/wps/wcm/connect/doit_labour/Labour/Home/Acts+Implemented/Details+of+the+Acts+Implemented/The+Industrial+Employment++Act,+1946/The+Industrial+Employment+%28Standing+Orders%29+Central+Rules,+1946

 

If you can’t handle the matter with your own efforts, and do not wish to pursue thru your lawyer, employee’s unions, IT employee’s unions, Trade Unions……………………………………the option is to reconcile with employer……………………………go back and serve till all works mentioned by company are finished by you.

 

 

Rahul (Web Developer)     27 June 2014

Dear Mr Doab

Thank you for updating me about the laws. yes i am ready to counter the matter on my own. i am just collecting the facts about the legal aspects. 

one more clearification required that if employer can do such kind of threat/activities even after relieving of the employee by giving proper relieving and resignation acceptance letter.

 

Thanks again for kind adivice and support. i am looking forward to persue this matter with your kind advice

Regards

Rahul


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