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Refusal to pay salary by employer to employee on account of management dispute.

(Querist) 30 October 2013 This query is : Resolved 
I need the advice from professional colleagues on following.

I was working with one Financial Services Company since 2009, When I joined that company I Got appointment letter from one of their subsidiary company, Later on I was Transferred to payroll of other group company in 2010, In 2011 I was again transferred to payroll of other company which was created for special project, Then suddenly Management dispute erupted and Two promoter of the company were started fighting to own control over Project Company, Subsequently It was found that Project Company is not subsidiary company and one of the Promoter is only owner of the company, Other promoter however sent the email that Project Company is his own company and every employee of project company should not worry about their payment. However after some time both of the partners started their dispute and ignore all the other employees and did not pay salary for 2 months. However I was working during the period for Project Company and Group company without having knowledge that it is separate companies. After not getting salary for 2 months I approached to other promoter to absorb me on pay roll of group company As I was transferred from that company to Project Company, which he accepted and issued me Transfer Letter through which he transferred me back to Group company, He orally promised to pay my pending salary of 2 months of Project Company. I got payment from Group company from date of transfer but still my payment for Project Company is not paid.

I want to recover my pending salary from my current employer as I was originally employed in his Payroll and as Organisation decision they transferred me to Payroll of Project Company and Even after transfer to Project Company I was working for both Group Company and Project Company. We suffered because Management dispute for which I was nothing to do and again my employer transferred me back on payroll of group company, but refuses to pay salary for 2 month for Project Company.

Please advice me what action I can take against my employer and In which court. I stay at Mumbai
ajay sethi (Expert) 31 October 2013
if you take legal proceedings you may lose your job .as it is there are hardly any jobs available now on account of recession


best would be to gather other affected employees and make joint representation to management to pay your salary for 2 months .send polite reminders
Uday (Querist) 31 October 2013
Thanks Mr.Sethi for your advice.

Please note that I have left that company and Joined to new one and already completed 3 months in new company. Till today I am doing follow up for pending salary but they are ignoring my requests. I have all proofs of my employment with them. I want to enforce my right. In which court I do that
ajay sethi (Expert) 31 October 2013
issue legal notice. file recovery suit in civil court
Uday (Querist) 31 October 2013
Thank you very much.

Can I present my case without engaging lawyer, as I am LLB but not taken sanad but I think I can present the case before the court

ajay sethi (Expert) 31 October 2013
yes you can do so
Rajendra K Goyal (Expert) 31 October 2013
A person can represent his case even if he is not a lawyer.
Kumar Doab (Expert) 08 November 2013
The employer has certain obligations:

---To deduct TDS as deductor and deposit it with govt.

---To deduct PF and deposit with jurisdictional PF office.

---To provide for ESIC, Group Insurance as the case may be

---To ensure Compulsory Insurance for Gratuity and deposit monthly contributions

---To pay earned wages on pay day that is fixed

And many others.

The question arises if these employers did not forget to pay for their electricity bill, sewerage bill, and what else not why did they conveniently forget to pay their wage bill…………………

Moreover the employer is duty bound to maintain records, registers as per the Shops and Commercial Establishments Act of the state, Payment of wages Act and other enactments and statues applicable to the establishment……………


The employer should have provided the acceptance of resignation, relieving letter, service certificate, correct FNF statement, payment of FNF dues, form16 as per correct FNF statement, PF number, PF a/c slips for entire tenure of service, ESIC card , salary slip of all months of employment…………………
If wages have not been paid you should decline to accept the FNF statement/settlement citing unpaid wages.


Employee can approach:

>> Lawyer/Law firm: The legal notice can help to drill sense into the heads.

>>Trade Unions: The Leaders know the precise ways to handle such matters.

>> Inspector under Shops and Commercial Establishments Act of the State…………One of the duties of the Inspector is to ensure that the dues of the separated employee are paid.


>> Inspector under Payment of Wages Act (Applicable to all employees drawing wages as per def. of wages in the Act up to Rs.18000/pm) within 1Y or employee shall have to get the delay condoned.

>> RPFC in o/o PF Commissioner (Nearest office has to help even if the PF a/c is ion some other office)

>> Inspector in Local/jurisdictional ESIC office………….( Wage ceiling for ESIC was Rs.15000/pm as per def. of wages in the Act and it is learnt that it was enhanced to Rs.25000/pm)


>> ITO-TDS where employee files his ITR and jurisdictional CIT-TDS where employer files ITR.


There are threads to indicate that the employees have been contemplating to approach police with criminal complaint…………………………………..and employers as their creditors treating unpaid wages as debt on employer.


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

Sudhir Kumar, Advocate (Expert) 21 May 2014
agreed with experts above


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