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Ruchi Choudhary (Manager-HR)     04 September 2010

200 Legal cases and ready for more

Dear All,

Today i came to know about a company which is well known in the city and i was shocked to know that how they are violating the labour laws/acts/rules...One of the employee of that company approached me and told me about this:

1) The company has a leave policy in which 7-CL and 7-SL are given +EL(18) are provided. Now, company has policy of deducting EL amount from the CTC. e.g: if my salary package is 4 lacs and according to my basic my 18 days salary will be 7741(approx) which is the part of CTC which is paid only on Full and final settlement. Now, if i take 10 EL's in a year then the amount will be deducted from CTC.

2)When the new ESI limit is introduced has deducted the employer share from employee's salary. eg: if my salary is 11k and now both the shares will be deducted from my account...

3)Since the ESI is implemented in the company, no body coming under the slab has given Salary slips..

4)Company is providing Appointment letter but not cofirming the employees...and if an employee left after year...even if he has not given the probation extension or confirmation letter his 3 months notice period is deducted from Full and FInal settlement which is a condition for confirmed employees...

Now, the company has legal cell of their own and if any employee wanted to go against them their answer is "Already 200 cases are running on us if it becomes 201 it doesnt matter as we are paying to police, judges and labour inspectors a lot"

Seniors/Lawyers/Legal Consultants: your suggestions are highly appreciated as this type of exercise should be immediately stopped...and the company owner should be punished by violating the laws and harassing the employees....





 4 Replies

R.Ramachandran (Advocate)     04 September 2010

Dear Ruchi,

I fully understand the situation.  It is not only the suggestions that matter, but concrete action so that this menace could be stopped.  Since the matter is sensitive and the employees would not be in a position to discuss the details in this forum, if you feel it ok, please contact me through Private Mail (PM).

t.muralidaran (manager hr)     05 September 2010

First thing is

1)They should violate fundamental rights. ( as envisaged in Art.226 and against 32 ) for violative employment contract against freedom of a person.

2) PIL can be filed against the company not adhearing social security measures.


T Muralidaran

95000 92586

A.N.sinha (Advocate)     06 November 2010

You can file cases either in Shops Act or I.D. Act in Labour Court treating it to be deduction from your wages.

radha krishna (vp-hr)     06 November 2010

Employees agrieved by the actions/unfair labour practices of the Management has to riase a dispute or file a case.

Documents/payslips/probation letters/termination letters/the details of all 200 odd cases  etc will help the agrieved in filing the cases. Al the acts ESI/PF/Welfare legislations like Factories act/Shops acts stipulates that the employer should not reduce the  remuneration for implementation of any of ther provisions of these acts.

If one can prove that the salary of an employee is reduced to the extent of Employer's contribution of ESI, the employee has every right to complain to ESI Inspector concerned.Likewise one can approach authorities under Shops Act/Factories Act etc.,

Will employees come forward to fight against the Mgt? A group of ex-employees/termianted employees can file a case/complaint.

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