Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Saurabh Goyal   16 February 2017

Employer not paying salary and sacking employees without any notice

Hello Everyone, I am working in a mid size company situated in Delhi. I started working in this company in Sep'2016 and since Jan'2017, company is facing lot of financial issues. On 15 February, my employer told me and several other employees to give resignation and not come to the office. We have been paid only 50% salary of Jan'2017 and they have told us that they will pay remaining salary as & when they get funds. Also, they are not willing to pay salary for Feb'2017. Please answer my below questions - 1. Should I give resignation and start searching another job Or I should keep coming here and demand retrenchment letter from them ? 2. In case we serve a legal notice on company to pay Due Salary, can we ask for additional compensation also since there is no written policy about notice period or severance pay ? 3. What is the most practical way to deal with this situation so that I can get my full & final salary till date ?



Learning

 12 Replies

Kumar Doab (FIN)     16 February 2017

If employees are resigning by resignation (notice of resignation or resignation with immediate effect is not made clear by you) then how is it sacking by employer?

 

Does employee(s) have any evidence of demand of resignation and not to come tom office from the very next day ( audio/visual/witnessed/minuted)?

Kumar Doab (FIN)     16 February 2017

Similar queries have been discussed many times at LCI and can be searched in Search option and corresponding rules/ACT/judgments can be downloaded. 
 

Kumar Doab (FIN)     16 February 2017

How has employee resigned: by some software tool, email from personal email id (in record of establishment) by letter?



Does employee have copy, acknowledgment, proof of dispatch, delivery of resignation? 



What is the notice period mentioned in appointment letter?


What is the notice period tendered by employee?

Kumar Doab (FIN)     16 February 2017

Are all employees united and agree to stand as a witness to each other?

You are asking for you or on behalf of all employees or employee's union?

 

What is this establishment: Commercial, Industrial?

What is its line of business; say Banking, IT?

The employee(s) is/are located in which state? Does Company have an office in this state?

The reporting office, Redg. Office, HO is located in which state?

How many people are employed in establishment?

What is employee’s designation and nature of duties on record?

Kumar Doab (FIN)     16 February 2017

What does employee have offer letter or appointment letter?

Does employee have copy of salary slip of all months, Form16 of all years, PF number and a/c slips of all years, ESIC card etc etc?

Does employee have copy of all HR policies applicable to employee/service rules, exit policy, employee handbook etc etc ? 

 

What is the monthly salary and its break up?

 

The employee (s)  has/have worked for how many months?

Does employee has any power to sanction (not just recommend) leave/increment/appoint/terminate/appraise etc etc?

Can anyone cancel/amend employee’s recommendations?

Saurabh Goyal   16 February 2017

Hi,

Employees are not resigning by their will. Instead, employer has asked them to resign.

Employer is saying they cannot pay salary now and they will pay salary when they have funds.

 

Kumar Doab (FIN)     16 February 2017

You may post reply to all points, pointwise.

 

 

 

Kumar Doab (FIN)     16 February 2017

If employee has resigned and has NO evidence then how can it be sacking/termination/lay off/retrenchment?

If employee has resigned with immediate effect then employer may square off the dues in FnF statement/settlement.

 

Saurabh Goyal   16 February 2017

Originally posted by : Kumar Doab
Are all employees united and agree to stand as a witness to each other?

You are asking for you or on behalf of all employees or employee's union?

 

What is this establishment: Commercial, Industrial?

What is its line of business; say Banking, IT?

The employee(s) is/are located in which state? Does Company have an office in this state?

The reporting office, Redg. Office, HO is located in which state?

How many people are employed in establishment?

What is employee’s designation and nature of duties on record?

Yes, employees are united and will standing as witness to each other.

Its is a Private Limited company in business of petrochemicals.

The company and employees both are located at its head office in New Delhi

Around 50 employees are employed here.

I am designated as manager accounts and nature of duty is related to accounting and finance function. Other employees have different designations and departments like marketing, accounting etc.

Saurabh Goyal   16 February 2017

Originally posted by : Kumar Doab
How has employee resigned: by some software tool, email from personal email id (in record of establishment) by letter?



Does employee have copy, acknowledgment, proof of dispatch, delivery of resignation? 



What is the notice period mentioned in appointment letter?


What is the notice period tendered by employee?

 

Employees have not yet resigned. But they have been asked by management to resign.

The appointment letter given by company mentions nothing about notice period etc neither they have any internal policy. 

 

Saurabh Goyal   16 February 2017

Originally posted by : Kumar Doab
You may post reply to all points, pointwise.

 

 

 

 

I hope i have replied to all your queries. Please note the employees have not yet resigned but they have been told by management that company will not be able to pay their salaries and they should resign. Salary for Jan'17 has been paid only 50%. Balance 50% salary of Jan will be paid by company when they have funds. And no salary for Feb17 will be paid. 

Generally, companies pay severance pay when layoff employees to take care of their expenses till next employment is found but this company has took its handsoff from all responsibilities. 

If any lawyer can help us to get us our due compensation, we would pay a good share from it to the lawyer.

 

 

Kumar Doab (FIN)     16 February 2017

You have posted that;

"If any lawyer can help us to get us our due compensation, we would pay a good share from it to the lawyer."

Avoid posers, pretenders, that loiter at online portals or otherwise.

I am not aware of such lawyers, that work on Cut ( dalaali type of benefits).

For a good counsel specializing in Labort/service matters visit Labor Court/CGIT/Civil Courts/CAT/HC/SC etc and find out yourself.

 

First thing First: Download irrefutable evidence of demand of resignation and not to come to office from very next day.

 

 

 

 

 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register