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Tushar Jha (Advisor)     02 January 2014

Delay in receiving salary

QUERY :-
 
A mid-level employee in a public limited with a Salary of Rs.53,000/- per month is not getting his salary in timely manner.
 
For the last 6 months,he has not received any salary.Now he is looking for another job & he has already given an advance notice to company's HR Department that he will resign within 90 Days (since,he is bound by the agreement to notify the company atleast 90 Days in advance before resigning).
 
Despite repeated reminders the company is not paying his Salary and travelling alowances for past 14 Months & since only 3 months are remaining after which he would resign,he is not having any hope of getting his salary of remaining 3 months before last day at this job.
 
Hence,can you suggest an effective & expeditious legal remedy in order to recover his dues from the Company.
 
1. Kindly state the Law/Statute which governs such disputes in Indian Legal Context ?
2. Where will such Lawsuit be tried or hearded ? ( State the Jurisdiction ).
3. Can there be any award of interest on the outstanding wages ? If Yes,how much per annum ? 
4. Can the petitioner/Plaintiff claim any damages for mental agony & litigation cost,if the cause of delay is unjustifiable?
 
Awaiting your earliest response.

 


Learning

 4 Replies

Kumar Doab (FIN)     02 January 2014

 

It is believed by ‘Mid Level” Employee you mean employee in Middle Management.

 

 

 

If yes he may not be covered as ‘Workman’ as in ID Act and “Employee” as in Shops and Commercial Establishments Act of the state...................

 

As the salary (or wages as defined in Payment of Wages Act) may be above Rs.18000/pm the employee may not be allowed to agitate under Payment of Wages Act.......................

 

However it shall be appropriate to consult a competent and experienced Labor Consultant/service lawyer and the lawyer after examining the documents and asking a set of structured questions can opine that employee would be covered by these enactments or not.

 

If the employee is not covered he may have to file civil suite for recovery of wages and tour bills.

In such a case the limitation period may be 3 years, hence the employee may act in time.

 

There are threads to indicate that employees have been contemplating to file criminal complaints u/s 406, 420.......................and approach employer as creditors treating unpaid wages as debt on employer e.g;

 

https://www.lawyersclubindia.com/forum/details.asp?mod_id=72011&offset=1#.UNRXofLZ1JI

 

 

There many threads on similar issues e.g;

https://www.lawyersclubindia.com/forum/About-fnf-94924.asp#.UsUKDNIW1MA

 

https://www.lawyersclubindia.com/forum/Not-getting-salary-for-the-last-2-months-94910.asp#.UsUKI9IW1MA

 

https://www.lawyersclubindia.com/forum/Non-payment-of-full-n-final-by-the-employer-79800.asp#.UsUKa9IW1MA

 

You have given very long rope to this employer.

 

It is suggested that unpaid employee(s) must decline to undertake any tours and may mark attendance in office only.

 

Employee could have declared that in such a situation notice period has lost its sanctity as employer himself has breached the contract by not paying wages and reimbursements by its due date.............................

 

If the employer has not been paying wages it must have defaulted on PF,ESIC, TDS too......................and in such a case the regulators can be approached.

 

If there are many affected employees al may join hands and initiate agitation to shake the govt.

 

Jurisdiction of courts shall be last location of employee/redg. office or HO of the company/jurisdictional courts as stated in appointment letter..............................

 

It is almost sure that company shall scream and agitate for the jurisdiction as stated in appointment letter..............................

and the court may return the plaint and the employee may have to approach HC to fix jurisdiction at his last location........................

 

To award interest and penalty etc or not is pleasure of the court of law and court of law may grant it at its pleasure.

 

However seek your lawyer’s opinion.

 

The lawyer that has seen all of your docs and has analyzed your inputs can advice you the best.

 

 

 

 

 

 

 

 

 

 

Manish (CCE)     02 January 2014

Still I didn't receive my FnF of my previous company And I M in touch with a finance team 

But I M getting dates but not FnF 

So suggest me how I can retrieve my Amount 

Kumar Doab (FIN)     02 January 2014

@ Manish,

Pls initiate a new thread or post in the thread intiated you. 

T. Kalaiselvan, Advocate (Advocate)     02 January 2014

I agree with the opinion and suggestion of Mr. Kumar Doab in this regard.


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