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Salary not paid by company

(Querist) 30 January 2014 This query is : Resolved 
Dear Sir,

I had work with Abhijeet group from Last 2 Years. This company Trap in coal scam & due to this company Hold salary of employee from Six Months but now I Resign from job. Befour resign company comet to pay my balance salary with full & final settlement, but after resign they told me they don't have money to pay. They neither pay salary nor deposite my PF from las six months.

Please advise me what to do....
ajay sethi (Expert) 30 January 2014
issue legal notice to company to pay your salary of 6 months . if company fails to pay your dues file winding up petition against company
ajay sethi (Expert) 30 January 2014
as far as PF dues are concerned if company has deducted it is bound to deposit your PF . lodge complaint with regional provident fund commissioner . if no action taken you can move consumer forum against company for recovery of your PF dues
Rajendra K Goyal (Expert) 30 January 2014
Well advised by the expert, agree to it.
Kumar Doab (Expert) 30 January 2014
>>> The employee should not work for the employer for even a day that does not pay wages.

The employees in your establishment have wasted long period of 6 month’s.

It usually happens with employees that are not united/have not formed unions/IC’s/Work Committees/Guild, and are not members of trade unions, have not retained access to a lawyer and do not consulted their lawyers, and are not properly informed.

The employment is not marriage; hence the committement is not like marriage vows an there is no emotional burden like in case of ‘Divorce’.
Your employer also has shown it to the community of employees and society that employment is not marriage.
Without any feelings for the plight of employees he has preferred to deny paying wages that too verbally.


>>> It is felt hat your employer has not issued any communication in writing on reason for non payment of wages and on closure/liquidation of company.
It is time tested, age old trick that::: delay wages, let employees resign and thus square off the dues by notice pay etc, delay issuance of FNF statement, FNF settlement , and by the time very few employees decide to take a legal approach it is too late for them.


In case of many employees the limitation period is over after 3 years.
In case of employees that are not covered as ‘Workman’ as in ID Act the relief may be a distant dream as even turn of ‘Workman’ comes in the last that too pari passu with bank dues……………………..!!!


You may go thru another thread that you may find relevant;
http://www.lawyersclubindia.com/forum/Company-in-liquidation-77247.asp#.UbRtnOeAqWN

Labour & Service Law > Others > Company in liquidation

Redressal mechanism for salary non-payment is slow: Recent example is Kingfisher Airlines………



>>> Unpaid wages is debt on employer. 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.


You may find other threads as relevant.


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

Discussion > Labour & Service Law > Disputes > Delay in full and final settlement payment

And

http://www.lawyersclubindia.com/forum/Resignation-of-an-employee-76209.asp#.UUwaeUpFZ_4

Discussion > Labour & Service Law > Shops Act > Resignation of an employee

On the above mentioned lines “An Assistant Vice President of the company succeeded against the employer.”

You may go thru:


Delhi High Court
Argha Sen vs Interra Information ... on 12 September, 2005
http://www.indiankanoon.org/doc/1941604/?type=print

27…………………….. It is not a petition for recovery of any disputed debt. The amount in question is clearly payable by the respondent-company to the petitioners which is on account of salary and allowances, etc. In spite of giving an assurance to make the payment, the dues are not paid. The defense put forth by the respondent-company is clearly sham. Therefore, I am of prima facie view that debt is payable by the company and it is unable to pay the same.


28. In view of the circumstances explained above, following directions are given:
(a) CP No. 244/2004 is admitted to hearing. Citations shall be published in 'The Statesman'(English) and 'Jansatta'(Hindi) for 8-11-2005. The Official Liquidator attached to this Court is appointed as the Provisional Liquidator, who shall take charge of the assets and records of the company.

(b) This order shall remain in abeyance for a period of six weeks to enable the company to deposit the amount involved in both the petition in this Court.
(c) In case the amount is not deposited within six weeks, the petitioners shall take steps for getting the citations published. For publication of citations both the petitioners shall share the expenses in equal proportion. The Official Liquidator, in that eventuality, shall take immediate steps as per the aforesaid directions.



>>> The non Payment of wages is breach of trust by employer that has to pay monthly wages after a month’s long hard work extracted from employee.

The employee can lodge a complaint the minute his wages are delayed even for a day.
Why should there be any sympathy for such employer and that too which is mired in scams????


In your case you should have stated the reason for resignation as’ Non Payment of Wages’ and should have claimed that employer has breached the trust and condition like ‘Notice period/notice pay in lieu of it’ as lost its sanctity and is void an should not be applied and should e waived off by employer on his own. If you have not conclude it in follow up communications and claim that this has been discussed and decided in office with you………………………………..

YOU MUST AT ONCE SUBMIT FNF STATEMENT OF PAYABLE BY COMPANY TO YOU AND THUS PLACE ON RECORD THE “DETERMINED DEBT” AND HENCE AMOUNTS COMPANY OWES TO YOU AND DO YOUR LEVEL BEST TO OBTAIN AN ACKNOWLEDGMENT FROM COMPANY EVEN IF BY EMAIL OR AT LEAST NF STATEMENT FROM COMPANY EVEN IF BY EMAIL.


If company has defaulted on payment of wages it must have defaulted on PF, Gratuity, ESIC, Bonus, TDS………….etc
The employees can approach:

--- Trade Unions e.g; CITU, AITUC, INTUC ............................
--- Inspector under (Name of your state) Shops and Commercial Establishments Act
--- 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. If you are covered by this act then you and all employees can file common application for recovery of wages. You may go thru Sec;

--- O/o Labor Commissioner

--- ESIC Inspector; at its website ESIC has mentioned wage ceiling for ESIC as Rs.25000/pm

--- RPFC in nearest PF office

--- ITO; TDS where you file your ITR

--- CIT-TDS (jurisdictional) where company files ITR

---Controlling Authority of Gratuity

Prepare a list of assets of the establishment and its directors…………………..Managers that are endorsed as ‘Representatives of the employer’………………

It shall be appropriate if you don’t delay and if all employees unite hands and proceed under the expert advice of your labor consultant/service lawyer. Open as many front as you can before the creditors approach for liquidation.

Build unbearable pressure so that the employer has to cough up the payment of due wages even if he has to sell his……………………………


YOGESH AKULWAR (Querist) 31 January 2014
Thank you very much for a very detailed reply. i am grateful.
with thanks to all....
ajay sethi (Expert) 31 January 2014
thanks for your appreciation
Rajendra K Goyal (Expert) 31 January 2014
You are welcome.


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