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Rajat Banerjee (Tech Sales Associate)     13 December 2012

Employer not paying salary

I have a question. I joined a company on the 16th October 2012. And as per the offer letter I am supposed to get my salary on or before 7th on every month. I received my first salary on 7th of November 2012. But now I was supposed to receive the salary for the month of november by 7th of December 2012. On 7th of december 2012 they informed all the employees of the company that there is a delay in your salary and you will receive your salary on 11th of December instead of 7th of December. Now the company is closed for Christmas vacation and would reopen on 7th January 2013. Now the HR and none of the owner's are receving our calls. Now in this case what needs to be done. How much time it might take to get the salary. What would be the legal procedure and steps that we need to follow and how much is it going to cost us.

 
Just for your better idea.
 
Our company deals with providing technical support for US customers. Total number of Employees is the company is 8. Out of which none of them received there salaries.
 
Company is located in Sector - 65, Noida 
My Salary is Rs 32000 per month


Learning

 21 Replies

zahur (Advocate)     13 December 2012

if you/other employ entitled to receive from the employer
any money or any benefit which is capable of being computed in terms
of money, application in labour court under the INDUSTRIAL DISPUTES ACT sec. 33c(2).

ADVOCATE Prem Joshi (Advocate/ Legal Consultant)     13 December 2012

first clearify your query

you said that you joined that company on 16th nov, 2012 then how it is possible you got your first salary on 7th nov ?

 

or if it is wrong

 

then you have a option to filed a case agaist the company into a Hob'ble Labour Court. The Hon'ble Court will be appoint a Labour Inspector for this enquiry.

Rajat Banerjee (Tech Sales Associate)     13 December 2012

Sorry there was a mistake in typing. I joined the company on 16th October 2012. Can you assist me how to proceed with this case. What would be the charges(if any)

Rajat Banerjee (Tech Sales Associate)     13 December 2012

Can you assist me how to proceed with this case. What would be the charges(if any)

Kumar Doab (FIN)     13 December 2012

A good company/employer would disburse salary in advance if company would be closed in coming days for vacation.

Apparently your employer is squeezed of funds. It may disburse your salary on getting payments.

You may assess the situation yourself and be with a company where your wages shall get paid. Many of such companies have gone with the wind. If you and other employees resign with immediate effect company would be happy to adjust notice pay and square off your FNF dues.

You may look into the option of scouting for a good company during vacation.

It is felt that you are with an IT/ITES/software company.

Has your company registered and has it displayed the registration certificate near entrance?

These companies are covered by SE Act.

SE Act UP {kindly obtain the latest version from Dept. of Labor website/SE Inspectorate or buy from market and appraise yourself with the options available to you if decide to separate in future.}

Term and Renewal of registration certificate/Duplicate Registration Certificate/

Amendment of registration certificate

1.        -In case of closing down of shop or commercial establishment, the owner shall notify such closure in writing to the inspector concerned within 15 days of his closing down the shop or commercial establishment.

Every owner shall display the registration number on a plate with letters and figures at least 5 cms. High and 1 cm. thick written in white or luminous paint of any colour

Wage Period

payment shall be made……… demands payments

 

Maintenance of registers and records/ Inspector & facilities to be afforded to inspector

ENFORCEMENT AND PENALTIES

 Every employer shall employing employees more than 25 shall be required to maintain a register of attendance and wages in Form ‘G’

In any register or record which an employer is required to be maintain, the entries relating to any day shall be made on that particular day.

 

Discharge  of employee by his employer

No employee shall be discharged from services by his employer except on the ground that-

-He has been served with a notice in writing containing the grounds of discharge. The notice shall be for a period of not less than 30 days

{This implies the notice period is max. 30 days. The notice period applicable to employee and employer should be same. If you are in probation period 30 days notice period during probation period may be termed unreasonable and may be 7 days or so. You may go thru your appointment letter.}

All employees may keep a record of all telephone calls made by them with copy of bill for detail of date, time of call, phone numbers from which call was made and at which call was made and minutes of discussion. The point is that there should be enough on written record and evidence that employer is unworthy of being employed with and notice period has lost its sanctity and should be waived off.

Employees should narrate the reason of resignation in notice of resignation and mention the effective of resignation/last day in office and demand from the employer that employer should waive off the notice period, notice pay as employee is constrained to look for source of livelihood somewhere else as his wages are not being paid by employer. Employee should transfer the onus on employer.

Narrating each representation by phone, in person in office, by email… etc all employees may demand payment of wages in writing under acknowledgment.

Has the company issued salary slip?

All employees may join hands and be witness to each other. All employees can approach Inspector under SE Act, Wages Inspector, O/o Labor Commissioner.

All employees should   jointly approach a competent and experienced labor consultant/service lawyer with copy of all details and documents and proceed under expert advice. Your expenses can be divided amongst all.

Your lawyer may confirm that you fall within the category of workman or you have to agitate in civil court.

Employee should always consult elders in the family, competent and experienced well wishers, lawyer/law firm before acting in haste.

 


Attached File : 148573706 up shops and establishment act check list by dipti 150.doc downloaded: 475 times

ajit (AGM)     15 December 2012

Hi I have joined this company in the month of january 2012, at the position of Asst General Manger. Till June 2012, i was getting the salary. post which they have not transfered any salary. I have been asking them to pay me my dues. it's already been 5 months, neither have i been terminated nor have i resigned from the job. last month on 28th of novemebr my elder son suffered a brain stroke, I again asked them for my dues, they just gave me some false replies. I have lost my son on 10th of this month. It all hapenned because I did not have enough money to take him immidiatly to a better hospital. It took me appro. 14 hours to arrange the funds.

I want the salary for these 5 months, and also compensation for the untimely death of my son ( 7 Yrs old), because the core reason for which is not having enough money at the required time.

Please suggest what should be the course of action. 

Khawar Ziad Khan (Sr. Manager-Sales)     15 December 2012

 

I joined the growth unlimited (sister concern of Cosmic Group dealing in Commercial and residential projects, A-5, Sec- 4 Noida near Rajnigandha chowk) on 17th Oct 2012 as Sr. Manager-Sales.I was given single pager appointment letter with package of 3.6 lacs pa and Rs. 4000 per month as conveyance.Since than I am reporting to the office on time and informing Hr on time for any leave and late coming But the company has no any Hr policy as such in favour of employees benefit at all. My team manager Mr Jagdeep bhardwaj threatening and harassing me on daily basis for not releasing salary and discriminating with me from other colleague whether they perform or not.I spent  lot of money from my pocket on conveyance, events organised by company to generate leads nor salary has been credited to my account yet while Salary has to be given on 10th of every month.when Hr (parul sharma )is asked for salary she says that Mr. Jagdeep Bhardwaj will release the salary than what is the role of Hr. All they are culprit and involved in harassing empolyees. I request you please take the necessary actions against the growth unlimited, Jagdeep Bharadwaj (8030795325) and HR manager Parul sharma (9911065339).There are other people who are victimized by Growth unlimited but they are silence but i will not because my family is suffering from it.

 

regards,

Khawar Ziad Khan

9999462177  

Kumar Doab (FIN)     16 December 2012

@ Ajit,

It is highly unfortunate that you have lost your son. It is highly perturbing.

Such companies and such personnel in the company are not fit to be left to loose around in a civilized society.

You may feel like in such a situation while you are squeezed of funds you are not able to afford the fee of a lawyer however proceeding under the expert advice of a lawyer shall be the most appropriate step. There are good Samaritans, NGO’s, Lawyers who take such matter as a cause not just as a case, and may not charge a penny, and still bring the matter to its logical conclusion.

This is the time when the parent shall stand up and shake the administration and everyone who needs to act.

Kindly shoot the representation to CM, State Labor Minister, Central Labor Minister, PM, President, Registrar of company affairs, Wages Inspector, Inspector under SE Act, Labor Commissioner, Labor Inspector, Factory Inspector, Police Commissioner/SHO/SSP etc and also approach the institution of print and electronic media, NGO’s, court of law, and anything and everything that you can think of.

You should involve the local councilor, MLA, Temple/Gurudwara/Church/Mosque committees, community leaders, well wishers, acquaintances and teach this leach a lesson of his life for his and next generations.

Create a noise with cries.

While you may think that being AGM you do not fall within the category of a workman, kindly note that designation alone shall not decide employee was a workman or not.

The labor laws applicable to a workman limit the choice to an employer.

Kindly take detail all communications submitted by you to your employer, appointing authority, MD, Company Secretary, Directors, HR, Line management by phone/in person/by email/by letters to your lawyer { competent and experienced labor consultant/service lawyer, and criminal lawyer} and provide inputs.

If company is not paying salary what else an employee shall do other than stop reporting for working/work.

If you were covered under group health insurance by company submit the claim to o/o MD under acknowledgment.

The death of your son is murder.

Tame and shame the company.

The stoppage of salary can have damaging effect on morale, psyche of not just employee but family as well.

Another point is that all employees must buy sufficient health insurance cover for self and family members from a general insurance company preferably nationalized as the moment employment ends the policy arranged by company ends.

Even if employee buys another form market there shall be a gap/break.

The premium paid gets income tax relief under Sec 80D and as per new rules if policy is kept in force no company can decline to continue regular insurance till death, even if there are claims during tenure of policy.

Citizen can renew policy 1 month before due date every year without any need for medicals.

Kumar Doab (FIN)     16 December 2012

@ Khawar Ziad Khan,

Employee should make it a thumb rule that not even a single penny shall be spent /invested on the company.

Why can’t you demand imprested cash/e from your employer to undertake daily tours?

It has become a trend that employees are coerced to spend on the work of company and later majority of them get nothing. For employers this is another avenue for profit and saving.

Salary can not be stopped. Company may show tantrums for reimbursement of field expenses.

Record the transactions {audio/visual. Mobile comes handy} while your manager and HR are declining to pay salary. If many of the employees are in similar sorry state all should join hands and proceed against this unscrupulous employer and his good for nothing line managers and HR.

Submit a carefully structured representation to your appointing authority, MD, Company Secretary for not paying the salary in your salary a/c {if any} and include that no cheque/DD has been handed over to you while you have been clamoring for salary in office everyday. Issue reminders and build record.

Do not commit the error of spending more than your monthly conveyance allowance.

Later you may have to approach Wages Inspector, Inspector under SE Act, Labor Inspector/ALC/Labor Commissioner, or a civil court.

If you resign with immediate effect company shall be happy to square off your dues in FNF statement/settlement by adjusting notice pay.

Hence submit representations in writing under acknowledgment and build record, and thus declare the employer unworthy of being employed with.

If you decide to resign submit notice of resignation under proof of acknowledgment, mention reason for resignation as non payment of salary, and last day in office { as per notice period} and ask to waive off the clause on notice period/notice pay in writing by redg. post only.

You are employee and you shall have to rise and act, and put efforts.

 

 

ajit (AGM)     16 December 2012

Dear Kumar, Thanks a lot for the timely reply. The other thing I need to confirm is, can I also claim a compensation for the untimely demise of my son, because of shortage of funds. Because, as far as I know, loss of money will be the biggest punishment for the management. Please advice. Regards Ajit

Sachin (Business Development Manager)     02 August 2014

I have been also working with a company which is not paying salary for two months. I have asked so many times but they say that there is no salary. Agar kaam krna h to karo vana jao paisa nahi h. thay have given me offer letter and joining letter which I can show as a proof. Second thing thay have given the salary slip on emails but there is not salary so I can show it as a proof to. The company is in Noida sector 2. Please help me with some contact. So that I can take an action againts them. The company Name is Shahdeep International Business Solution LTD that Is sector 2 noida B41.

Please help me with some contact details.

Sachin

Kumar Doab (FIN)     03 August 2014

@ Sachin,

You may refer to :

>>U.P. Dookan aur Vanijya Adhisthan Adhiniyam, 1962

CHAPTER IV
Wage deductions and Notices of Discharge

>> Payment of Wages Act;

 

Employee can approach:



-Lawyer/law firm: A legal notice can help to drill sense into the heads. You may request your lawyer to include the HR personnel, Manager Finance, appointing authority, CEO, Chairman, Directors, MD............

Designation alone does not decide employee is covered as ‘Employee’ as in Shops and Commercial Establishments Act, and ‘Workman’ as in ID Act....................

Your lawyer may ask you a set of structured questions and may opine that you are covered.


-Trade Unions/ Employees Unions: They know precise ways to handle such issues


-Inspector under (Name of your state) Shops and Commercial Establishments Act; 

-Inspector under Payment of Wages Act( applicable to all employees drawing wages as per def. of wages in the enactment up to Rs.18000/pm) :: The period to lodge complaint with Inspector under Payment of Wages Act is 1Y however to condone the delay is pleasure of the authority.



-RPFC, Addl. CPFC n the state, CPFC......................for PF

-Jurisdictional ESIC Inspector, for ESIC

-ITO-TDS where employee files ITR and Jurisdictional Cit-TDS where employer files ITR

-o/o Labor commissioner

-Civil Court.

There are threads to suggest that employees have been contemplating to lodge criminal complaint u/s 406,420..................

And to approach employer as creditors treating unpaid wages as debt on employer.

 

h singh   26 August 2015

I joined datawind innovations on june 1st 2015 and worked there. they didn't gave me appointment letter for same. I was appointed in sales of tablets. they commited salary and incentives on sales. I worked there till 25 june 2015. i asked for 10 days non paid leaves and hr dept told me to resign me with immediate effect, promising to pay me salary within 2-3 days,since then then are giving me future dates. every time i go to office new person from hr dept meets me ,promise to pay salary.i have already visited their office for more than 10 times. kindly advice me how to recover my dues of salary+ incntvs approx rs9000/-. they also havent paid incentives to sales employees of junior level since march holding rs 20,000/- approx of each employee.

Kumar Doab (FIN)     27 August 2015

You were in sales hence your div/office might be registered under (Name of the state) Shops and Commercial Establishments Act.........................and appointment letter, salary slips should have been issued.

 

The notice period for 25 days service should be NIL.

The company has made a pass on you by extracting resignation.

 

You should have submitted leave application in writing under proper acknowledgment.

 

 

For outstanding dues you may approach the forums/authorities as explained many times in this thread e.g;

 

-Trade Unions/ Employees Unions: They know precise ways to handle such issues


-Inspector under (Name of your state) Shops and Commercial Establishments Act; 

-Inspector under Payment of Wages Act( applicable to all employees drawing wages as per def. of wages in the enactment up to Rs.18000/pm) :: The period to lodge complaint with Inspector under Payment of Wages Act is 1Y however to condone the delay is pleasure of the authority.



-RPFC, Addl. CPFC n the state, CPFC......................for PF

-Jurisdictional ESIC Inspector, for ESIC

-ITO-TDS where employee files ITR and Jurisdictional Cit-TDS where employer files ITR

-o/o Labor commissioner

-Civil Court.

There are threads to suggest that employees have been contemplating to lodge criminal complaint u/s 406,420..................

And to approach employer as creditors treating unpaid wages as debt on employer.

 

 

 


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