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PBS KUMAR (HR - PROFESSIONAL)     20 March 2013

Delay of full and final settlement

Dear Experts,

Our organisation HQ is in Malaysia. All the top managers salaries are processed payroll section from there only. Now one of the Manager has left the organisation and his Full and Final settlement has not done even more than 30 days are over. Since we the operations here are facing problem the employee is contineously asking his settlement dues.

Actually what is the time limit of F&F. If it was delayed what is remedy. Please give your suggestions and supply any case laws.

Regards.

PBS KUMAR



Learning

 6 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     20 March 2013

The employer must take all precautions such as,
There are also a few things that an employee must do to ensure there are no complications in the process or later on. Make sure to settle any advances taken or get it adjusted in the final settlement.

Further, get a copy of all the various clearances required from the different departments of the organisation that the employee was attached to by virtue of his responsibilities. This will also ensure that there will be no complications when you join another organisation.

Kumar Doab (FIN)     20 March 2013

The day for payment of FNF dues: Usual Pay day.

If the employee has tendered notice period of resignation and has served notice period this time was sufficient to put the house in order for employer and complete the exit formalities.

The company which is operating in India/registered in India, may not succeed if its take a lame excuse that its office abroad has delayed the processing.

The line management/HR may step in and put pressure on concerned personnel responsible for settling the dues in time.

 Such matters paint bad picture of employer in market and employees may fell that employer is a violator of its obligations.

Valuable advice of learned experts/members is sought.

PBS KUMAR (HR - PROFESSIONAL)     21 March 2013

Dear Mr. Ramachari & Mr. Kumar Doab,

Thanks for your response, from our end we have sent all the No due certficates from the all the HODs etc. There should be time limit for F&F. Please advise us to close the issue.

Kumar Doab (FIN)     21 March 2013

{1.}  If IESO Act is applicable to the company and company has framed its certified standing orders quote from it or if standing orders are not certified quote from Model Standing Orders:

13.          Termination of employment:

(3)   Where the employment of any workmen is terminated, the wages earned by him and other dues, if any, shall be paid before the expiry of the second working day from the day on which his employment is terminated.

16.  Certificate on termination of service.--Every permanent  workman shall be entitled to a service certificate at the time of his dismissal, discharge or retirement from service.

 

NOTE. - There is a provision under  this  Act for issuing a service certificate at the time of  dismissal, discharge or retirement and every person is entitled to take such certificate.

 

{2.}  The SE Act e.g; SE Act Delhi:

2. Definitions: (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:

(5) Where the employment of any person is terminated by or on behalf   of the employer, the wages earned by him shall be paid before the expiry of the second working day after the day on which his employment is terminated.

21. Claims relating to wages.—(1) The Government may by notification in the Official Gazette, appoint any Commissioner for Workmen’s Compensation Act or other officer with experience as a Judge of a Civil Court or as a Stipendiary Magistrate to be the authority to hear and decide all claims arising out of delayed payment or non-payment of earned wages of an employee employed in any establishment.

37. Powers and duties of the Inspector:

COMMENTS

(b) Duties of the Inspector: (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;

43. Determination of employer for the purpose of this Act.—

(Therefore the employer as defined in the Act should have reason to feel concerned….)

 The SE Act does not indicriminate between workman or non workman and is applicable too all employees.

{3}   SE Act Bombay even goes further to impress that a company to which SE act is applicable IESO Act shall also apply and Inspector under SE Act shall be the Inspector for the enactment and even for Payment of wages act…..

{4.}   THE PAYMENT OF WAGES ACT, 1936:

(The Wage ceiling, for wages as defined in the act, has been increased to s.18000/pm, so it shall cover more number of employees )

2. Definitions.-

(ia) "employer" includes the legal representative of a deceased employer;

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;

 

If this does not suffice employee may approach a lawyer and contemplate to approach the company as creditor and claim unpaid wages are debt on employer.

Employer as defined in various enactments applicable to the company as per law of the land.

Valuable advice of learned experts/members is sought.


Attached File : 351440249 delhi shops & establishments act, 1954.pdf, 351440249 model%20standing%20orders.doc, 351440249 payment of wages act 1936.pdf downloaded: 256 times

Adv k . mahesh (advocate)     22 March 2013

notice period itself is the last day when he served and that day the company has to settle all his dues and final settlement even any dues adjust them and sttle the issue

in your office case the main office is at malaysia and are bound for isntructions from there and here only operating but switch is at malaysia. make the company people to settle the manager amount and close the issue if he take any legal step then you bound to come down 

Kumar Doab (FIN)     22 March 2013

Mr. Mahesh is right.

The employer would need employees/managers to handle his business div.

All employees are wise enough to understand that employer is a violator of its contractual liabilities/obligations and statutory benefits it has to provide to its employees.

This is precisely you need to drill into heads that employer would be seen as violator. Rather employer, should on his own, be concerned about it, and should endeavor to avoid getting painted as a violator.

The news flies and spreads on the wings on internet. Employees do whisper, and sometimes they shout as well.

The Manager/Occupier/Agent of Employer, appointing authority, Head-HR should stir and shake the concerned personnel.  End of the day the management in India has to mind the store and run the show.

 


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