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Non payment of salaries & dues by employer

(Querist) 13 April 2014 This query is : Resolved 
My company did not pay my salaries & dues for 3 months that is why i resigned. I have appointment letter, acceptance of resignation & relieving certificate. It is almost a year now the dues are not cleared inspite of repeated reminders.I filed a written complaint against employers in local police on misappropriation of my dues but no action. Suggest remedy.
Devajyoti Barman (Expert) 13 April 2014
Send him a legal notice.
If it fails to give any result, then file suit for money and criminal case for breach of trust.
ajay sethi (Expert) 13 April 2014
file winding up petition against the company after issue of notice
Rajendra K Goyal (Expert) 13 April 2014
Well advised by the experts, agree to it.
Kumar Doab (Expert) 13 April 2014
The employer was unable to pay wages. It was unworthy of being employed with.

You should have claimed that in such situation/breach by employer notice period/pay has lost its sanctity……………..and should have submit ted your claim of wages to appointing authority, MD……………………and demanded payment of wages on due date of payment.


The employee can lodge complaint the moment his wages are delayed even by a day! The employer can be penalized…………………….. say Rs.7500/instance!


Did the company issue FNF statement showing amounts payable to you or any other communication accepting the amounts payable to you and salary slips of each month of employment?

Did you submit an communication/statements of amounts payable to you by company and payable by you to company and hence net amounts payable to you?

Did the company reply?


The idea is to decide the determination and acceptance of debt!

What was the notice period applicable to you and did you tender it and serve it?
Since company has issued relieving letter it implies that you have been properly relieved.

What is your designation and nature of duties?

What is this establishment; Commercial, Industrial, Small Enterprise?

You and redg. Office of the establishment was located at which place?

If employer has defaulted on payment of wages it must have defaulted on EPF,EPS,EDLI, ESIC,TDS…..etc
Employee can approach:

--- 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.
Refer to: Payment of Wages Act; Sec13A and 2: 3*[(i), (ia), 3*[(vi), 3, 4 ,5, 13a, 14, 15, 16, 17A, 20…………..

The employee should approach within 1 year or has to get the delay condoned.
Employer has to issue wage slip to all employees.


--- O/o Labor Commissioner

----RPFC thru nearest PF office ;The

----ESTC Inspector in jurisdictional ESTC office


--- ITO; TDS where you file your ITR


CIT-TDS (jurisdictional) where company files ITR
There are provisions for penalty/punishment for non issuance of Form16 by the deducator…………..
----Lawyer/Law firm

---Civil Court

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 e.g;

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



Before you act further It shall be appropriate to show the job advt, job application, interview call letter, offer letter, selection letter, appointment letter, CTC sheet, Salary Structure, Salary slips, STANDING ORDERS APPLICABLE TO THE ESTABLISHMENT (CERTIFIED/MODEL) AND EXTENDED TO YOUR DESIGNATION, HR policy, Service rules and regulations, resignation letter, etc …………. Communications exchanged with company to a competent and experienced Labor consultant/service lawyer at your location, give inputs in person and proceed under the expert advice of your lawyer.



There are many threads on similar queries that you may find relevant e.g;

http://www.lawyersclubindia.com/forum/Termination-clause-in-appointment-letter-99313.asp#.UylRB0eBmXU

http://www.lawyersclubindia.com/forum/Winding-up-petition-by-ex-employees-99326.asp#.UylRBUeBmXU





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