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Sridharan Iyengar (Labour Law consultant)     15 August 2009

Unpaid Salary Claim of a Manager

One of the Company Employees, in a Managerial Cadre resigned and waiting for settlement of his Salary and other terminal benefits.

The company is not interested to pay him his salary ( last month's salary before he resigned)

Can the resigned Manager approach the civil court or arbitrator or what he has to do.      ( Because he is not coming under the perview of ID Act)

 



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 3 Replies

A V Vishal (Advocate)     16 August 2009

What are the terms of the employment agreement in case of regisnation or termination of services has to be perused. The company simply just like that cannot refuse payment of the salary due to its employee or ex-employee. Remedy lies in a a suit for recovery of unpaid salary in a civil court. You have further stated whether the case can be referred to an arbitrator. In case, there is such a clause then it can also be referred to an arbitrartor/s.

sapna (self employed)     10 September 2009

I endorse the advice given by Advocate Vishal. It has to be perused as to what were the terms of his employment regarding resignation/termination as contained in the appointment letter. Was there any notice perid salary . Has the resignation been accepted.has Since it was a managerial cadre, the remedy lies before the Civil court and the employee can claim his salary/dues/terminal benefits alongwith interest.It would also be better that a demand letter be sent by the resigned employee to the company before taking any legal recourse.


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