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SG_2005 (Business Head)     30 May 2014

420 / 415 ipc case against employer

Hi, am currently working with a start-up company in gurgaon, haryana. I've been trapped by multiple intentional wrong/illegal practices. I was working for over 5 yrs in a large corporate organisation befor joining my current employer. The sequence of events/details are as follows :

--> I was sent an LOI (letter of Intent) on e-mail, which mentioned the department, CTC, etc. The CTC amount was followed by "the break-up of the same will be mentioned on the Appointment Letter"

--> I was told verbally that the notice period in my employment would be of 3 months (same as with my previous employer)

--> In my previous employment, I had Corporate Medical insurance. As verbally told to me, same facility was not available here. I was verbally promised that incase a need arises within the next 12 months, the company would bear all medical expenses, for myself and immediate family -wife and kids. (Since I'd sffered a Heart Attack and had undergone angioplasty 7 months ago, I would not have been given Insurance Cover under a private policy for another 1 yr atleast.) Before joining, I'd informed of my medical history on e-mail.

--> Upon joining, despite various follow-ups, no Appointment Letter has been issued till date (8 months since).

--> After receiving my 1st "salary", i was shocked to know that I've been hired as a contractual consultant, wherein, the amount of salary paid was calculated @ CTC divided by 12 minus 10% TDS. Further, the payments have always been done through cheque, instead of account transfer. This has had a severe implication on my capacity to get credit/loan from banks

--> The company has aprox. 40 people employed, however, the story is the same for everyone - hired as contractual consultants (without any clarity before joining), no appointment letter issued or contract signed, payment by cheque, no TDS certificates issued till date for FY2013-14 (till Apr.end) ...am not aware of the previous FY. ....there is not a single "employee"

--> My profile and pic is also available on the company's website (mentioning the designation as "Business Head"), if that's any useful evidence.

--> Last month, my 5yr old son was admitted in Hospital/ICU for Kawasaki Syndrome, however, despite many requests, no re-imbursement was given for the hospital expenses (aprox. 1 lac) as per the promise before joining.

--> Infact, I was again assured (while my son was in ICU) that the entire hospital bill would be re-imbursed within a fortnight. I was even pressurized to do 3 outstation visits for some critical work assignments during this period. I have evidence of my visit dates (coressponding medical papers for same dates) on e-mail, which I'd done against my wish and without being in the right mental condition, as getting the re-imbursments was very critical for me.

--> Now in view of recent unavailibility of sufficient business/ revenue in my vertical (Business avaibility is out of my domain of project delivery) , I'm suspecting that my services would be terminated anytime.

--> The last few people to be relieved have either been given 1 month salary or nothing. I therefore believe that same will be done with me. They would surely neither pay me the promised 3 months compensation nor re-imburse my son's overdue hospital bills

I this happens and they refuse to pay the due amount, can I file a Police complaint  for intention cheating, breach of trust, etc (instead of going through the Labour Court route, which may be very time consuming)

Specially, because this is a standard practice by the company with all employees (same can be investigated and established), there is definitely an intent to trap and cheat unethically/illegally. Once someone quites his previous job and joins, he has no choice as any new employment will require (1) to explain the short duration of this job (2) a positive reference check/ immediate issuance of relieving letter. This results in people forcibly/ignorantly continuing work ....this to me, as a layman, seems a type of forced/bonded labour.



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 2 Replies

Advocate Ravinder (Advocate/Attorney)     31 May 2014

File a complaint before Labour court.  This case will not attract IPC, hence you cannot file Police complaint.

T. Kalaiselvan, Advocate (Advocate)     01 June 2014

The legal action against the employer have very remote chances of success in the absence of proper evidence.  The management has very clearly managed to appoint you as a contractual consultant and had been giving your salary by cheque without any pay slip or any supporting document for your salary details, moreover the TDS will be on the basis of the contractual amount amount made through your cheque and not on the basis of salary, you will not get even CTC or FnF settlement on termination and I still have my own doubt that whether your sn'medical expenses will be reimbursed, because it is  again oral and nothing in writing , the company if terminates your contract, will not even answer any of your query hence you may approach the company on a cordial manner so that if something is done to your reimbursement you can count on it.


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