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Sameer (Engineer)     14 February 2013

Unpaid full & final settlement and salary

Hi,

I joined IT consulting agency ABC which deployed me for the client XYZ as a contractor 6 months back. I was working under payroll of company ABC.

I got another opportunity in Company PQR. I served 20 days’ notice period for company ABC though as per my employee agreement the notice period was 1 day only. My employer ABC accepted my resignation and I have resignation acceptance e-mail.

However now my company ABC is not providing me Full and Final Settlement including my last month's salary. They are saying that my Client XYZ is not approving my time-sheet for the last month.

I discussed with my client company XYZ manager and they are saying that they did not get proper notice from my employer ABC regarding my resignation.

I am suffering bcoz my employer ABC is not willing to provide Full and Final Settlement and last month salary till my time-sheet is approved by client. My client XYZ is not willing to approve my time sheet.

Please let me know in this case, how I should get my full and final settlement and what all options I have. It has been more than a month and I am still struggling to get my last month salary and relieving letter.

Thanks!!



Learning

 3 Replies

ADVOCATE Prem Joshi (Advocate/ Legal Consultant)     15 February 2013

Kindly write a letter to the company and asked for FNF and if they fail to do so then serve a legal notice with good advocate and aftherthat approach the Hon'ble Labour Court.

Kumar Doab (FIN)     15 February 2013

Do you have appointment letter containing clause of 1 day of notice period, any communication demanding 20 days notice from you……

You have resignation acceptance e-mail.

 

You have posted that:

--“I joined IT consulting agency ABC” “I was working under payroll of company ABC.” “as per my employee agreement the notice period was 1 day only”

“My employer ABC accepted my resignation and I have resignation acceptance e-mail.”

 

 

--“I served 20 days’ notice period for company ABC”

“I discussed with my client company XYZ manager and they are saying that they did not get proper notice from my employer ABC regarding my resignation.”

Instead of 1 day notice you have accepted and adhered to the demand of 20 days notice by your employer ABC.

While as per XYZ, ABC has not adhered to its obligation (which may be verbal or written).

You are not at fault.

--“My client XYZ is not willing to approve my time sheet.”

It can not do so.As you have clocked the time and have done your job.

 

It can not record false entries too.

 

If XYZ id annoyed with ABC, it can not penalize you. You have performed your contractual obligations.

--“I am suffering bcoz my employer ABC is not willing to provide Full and Final Settlement and last month salary till my time-sheet is approved by client.”

It can not do so.

You must be having your own record of time sheet.You may submit it to ABC.

 

Such matters are best resolved by applying rapport, goodwill, persuasion, persistence, reasoning, and negotiation skills. Good offices of the employer should be approached and a fair opportunity be given to good offices to provide relief.

Even while you are agitating remain amiable.

If good offices also do not intervene and do not provide relief then legal route, lawful authority becomes an option.

 

You may submit final communication ( if you wish you can title it NOTICE also) addressed to good offices of your appointing authority, Chairman, Promoter/owner/Manager as per SE Act, cite reference of all representations made so far in person, by email, by letter etc( mention name/designation/dept/address/phone numbers etc), conclude that you have been clamoring to get your pending payments/docs and request them to intervene and provide relief by supplying you the pending payments and documents ( mention detail) so as to reach you within next say…….days.

You may highlight your sincerity, achievements, contributions, and remind the good offices that you have shown character and integrity by giving 20 days notice in place of 1 day as asked by Mr/Ms…….designation/dept……address….and serving notice period, handing over the charge/company property, and have abided by contractual obligation.

Now the management and good offices should also reciprocate and abide by its contractual obligations.

You may also send a gentle representation to XYZ , cite from minutes of discussion with manager ( that time sheet is blocked due to non compliance of some terms by ABC for which you are not at fault) and conclude that the treatment being meted out to you is unfair ( enclose your copy of time sheet).

Your employer should supply you, acknowledgment/acceptance of resignation, service certificate, relieving letter ( with good comments on conduct), NOC/NDC, correct FNF statement, correct Form 16 as per correct FNF statement, PF number, PF passbook/account slips for entire period of service, last salary slip, salary certificate……etc

 

IT companies are covered under SE Act of the state.

You may refer to SE Act of your state. e.g.;

The Delhi Shops and Establishments Act, 1954

2. Definitions.

(7)  “employee” means a person wholly or principally employed, whether directly or

otherwise, and whether for wages (payable on permanent, periodical, contract, piece-rate or commission basis) or other consideration

(8)  “employer” means the owner of any establishment about the business of which

persons are employed, and where the business of such establishment is not directly

managed by the owner, means the manager, agent or representative of such owner in

the said business;

19. TIME AND CONDITIONS OF PAYMENT OF WAGES.

21.  CLAIMS RELATING TO WAGES.

(30)  “wages” means wages as defined in section 2 of the Minimum Wages Act, 1948 (11 of

1948);

3. Rights and privileges under other law,  etc., not affected.—Nothing in this Act shall affect any rights or privileges which an  employee in any establishment is entitled to at the date this Act comes into force or under any other law, contract, custom or usage applicable to such establishment or an award, settlement or agreement binding on the employer and the employee in such establishment, if such rights or privileges are more favourable to him than those to which he would be entitled under this Act

30.  NOTICE OF DISMISSAL:

35. Inspection of Registers and calling for information.

37.  POWERS AND DUTIES OF INSPECTOR.

COMMENTS

(b) Duties of the Inspector :

(h)  that the wages and other dues are being paid to employees in time as required under the Act;

(i)  that in dispensing with the services of an employee the provision of the Act and Rules have been complied with and no  dues payable under the Act or Rules have been withheld;

41.  WILFULLY MAKING FALSE ENTRIES

43.  DETERMINATION OF EMPLOYER FOR THE PURPOSE OF THIS ACT.

Then

THE PAYMENT OF WAGES ACT, 1936

2. Definitions.-

3*[(vi) "wages" means

 (d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

Some states had granted blanket exemption from the provisions of IESO Act to the IT companies. It is felt that some states did not. ( Yu may check the situation in your state.)

State of Karnataka has ended the blanket exemption granted earlier by it and thus all IT companies should have framed certified standing orders within 6 months. Till the certified standing orders are framed model standing orders should apply.

If standing orders were applicable to your company and you, you may refer to clauses e.g.

Model Standing Orders: 13. Termination of employment,

15.        Complaints., --16.        Certificate on termination of service.-, 17.    Liability of 17[employer].-- 18.           Exhibition of standing orders.--

The payment of wages and certificate of service should have been supplied to employee on last day in office or within two days.

The Labor Inspector may issue notice and this may work in your favor and your payments may be released and the matter may end.

The company may relent and yield to your representation to good offices, demand notice, Notice by Wages Inspector, Inspector under SE Act, and legal notice by your lawyer. The option to approach civil court is there too.

Valuable advice of learned experts/members is sought.

 


Attached File : 734368179 delhi shops & establishments act, 1954.pdf downloaded: 198 times

Adv k . mahesh (advocate)     18 February 2013

everything you needed should be settled by talking and if needed by writing only with seniors 


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