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Mukesh Bhatnagar   15 March 2017

Employer not giving the salary

Dear Forum Members,

Greetings!!

Below is the brief of my problem with my last company.

 

Employer Name - Jai Ambey Global Electricals Ltd.

Rai, Sonepat Haryana.

 

I joined this company on 10th January 2017 as Head - Marketing, the proof of this I have on mail as Letter of Intent(date mentioned on it was 18th Jan) and date preponed to 10th Jan, 2017 and other conversations happened with them before joining. For the first month when I didn't got the Salary I spoke to Mr. Ashish Tyagi(Managing Director) on 10th February, 2017 about the Salary, he told me that their is a big problem going on with the company and company has applied for the loan to various banks and even trying to get some personal loans from the relatives and as soon as that happens everybody will get the salary. This is just to let you know that the Official staff comprising me and 4 others including one more person from Marketing and 2 persons from accounts, a pantry guy hasn't got the salary till date, today I have heard that they'll be getting post dated cheques of 21st March, 2017

Then the whole month of February till 6th of March went like this asking them about the salary and getting assurances from Mr. Ashish Tyagi and every time that commitment failed. On 7th of March, 2017 due to some personal problem I wasn't able to go to office, I sent an SMS from my phone to Mr. Ashish Tyagi - that due to some urgent and unavoidable circumstance I will not be able to come to office, So you are please requested to accept my Leave for today,the Reply of this SMS was really shocking  -"VERY GOOD".

When I went to office next day on 8th March, I got an email from the company around 12:30 pm on my personal Id Stating "Termination from my duties". I was shocked to see the same and when I called Mr. Ashish Tyagi 3 times he disconnected my call so I went to talk to Mr. Aman who is younger brother of Mr. Ashish and also one of the Directors of the company, he told me that I will not get any type of salary and will only get expenses and that is Rs. 30000/-(Rupees Thirty Thousand).

They have will fully lost my CV on which the Noting of my salary was there, But just to create one strong point , when I replied to them on 8th March itself I mentioned my salary in that as committed Rs. 1,20,000 X 2 months = Rs.2,40,000 plus my conveyance of Rs, 3028 duly approved by Mr. Aman and verified by A/c dept. Also during my tenure when I Visited to Lucknow for Official work along with Mr. Aman (Director) I gave him Rs. 1000 from my personal pocket as he was not having money for even Hotel Rent (he gave me this Rs. 1000/- back on 8th evening itself) . On 9th of March they replied to my this mail and in this mail they wrote that Rs. 1000/- has been given to you on 8th evening, and i should sent an acceptance mail for that.

After That on 10th March I got an mail again from the company stating "Management also shocked on seeing your mail. I had not provided my last company NOC  or resignation acceptance, that why my appointment was hold still not confirmed, I have also joined this company on false commitment,and they think that is also a cause of my non performance, and Company has the sole rights to decide my emoluments and expenses made by me during your tenure and  company will make your full n final settlement and respond you soon".

 

I was shocked after seeing this mail that Till my last day in office I haven't received any mail or communication for any paper formalities nor they have given me any appointment letter so that I could know what all papers I have to submit so I replied them same on 11th March and asked about the definition of their "SOON" and my full n final figure, but till now I haven't received any reply from them

Sir, I know and understand that a company can expel/terminate  any employee during the probation period, but that employee needs to be paid the salary for which he has worked, here they are denying the same.

I humbly request you to please help me in this case. I have all the documents supporting my joining, tenure, attendance and termination from the services. If still you need any thing else, please let me know, I'll provide if I can or try to provide that also, But kindly request you to please Help as I am the sole bread earner for my Family and in the past 2 months I have done lot of expenses in going to Sonepat on dialy basis.

Hope you'll understand my problem and will help me.

Thanks & Regards

Mukesh Bhatnagar 



Learning

 16 Replies


(Guest)

Sir,

You should visit a lawyer who specialises in labour matters/ Service matters in your area. Apart from that you can also file an application for winding up of the company on the grounds that your salaries have not been paid. You along with other employees should make a complaint to the company board. Also file a case for the winding up of the company in the high court. file a civil suit for recovery of salary on the basis of appointment letter or whatever proof of employment you have

Regards,
Rit Arora
Advocate
7838737001

Martin Lois   15 March 2017

As per law in general, salary is to be paid by 7th to 10th of each month, and any violation thereof will attract penalty and interest. 

First you have to formally demand the salary from the employer, either by sending a letter or a legal notice. If the employer does not pay after getting the letter/ notice, then you have to approach appropriate forum to recover the same. Under the labour laws, there are various forums of recover of the salary which depends on your nature of duties, nature of company with strength, tenure of service etc.

Mukesh Bhatnagar   15 March 2017

Dear Mr. Arora and Mr Lois,

Thank you for your valuable Feedback, Can you Please let me know that Does my case qualify to be put infront of Labour Commissioner/ Labour Court  Or Should I have to file a Civil Case, As I have been told by few of my friends that My case don't qualify to be presented before labour commissioner/court as that is meant for persons having salary below Rs. 18000/month.

Dear Kumar Doab Sir - Your inputs are also requested.

Thanks & Regards

Mukesh


(Guest)

Well certainly you can file the case before the civil court. Labourt courts are also a remedy available but only a counsel who specialises in those cases will be able to properly answer your query. a lot depends upon the nature of duty of the employee and for that matter the appointment letter comes into play

Kumar Doab (FIN)     15 March 2017

Did you have any powers to sanction ( not just recommend) leave/increment/appoint/terminate/appriase etc etc?

The nature of duties on record ( communications, notes,notings etc in custody/record of company) can be deciding factor...............for ou to be covered by the def. of 'Workman' as in ID Act.

 

 

Kumar Doab (FIN)     15 March 2017

It is not clear the establishment is ;Commercial or Industrial?

If commercial you may also be/may not be covered by the def. of  'Employee' as in Punjab Shops & Estbs Act. ( Haryana Follows it).

The break up of salary  is  not given you so it is not clear if you will be covered by the def. of 'Wages' as in Payment of Wages Act. ( This Act does not discriminate between 'Workman' and 'Non Workman').

 

 

 

Kumar Doab (FIN)     15 March 2017

It is not clear how many total employees company had and whether standing orders applied and were certified and your desigantion was covered by it or not.

The termination order seems to be stigmatic..................and crafted to fasten the liablity of  miscondut on employee.

 

 

Kumar Doab (FIN)     15 March 2017

The local counsel specialzing n Labor/service matters can help you.

The company seems to have operation in many states and approrpiate Govt might be 'Central' in your case.

So you may discuss ALC(Central).

The rush of cases might be comparetively low.

 

 

 

Kumar Doab (FIN)     15 March 2017

If you are not covered you may have to approach Civil Courts and your counsels may opine to press damages, as well.

Another Prespective; Some Trade Unions may embrace you and may  help you.

 

 

Kumar Doab (FIN)     15 March 2017

The draft of your query is proper and if you are confident that you know the  rules/law/procedures and can argue and can handle lawyers of OP, it is your own choice to agitate as PIP.

Your counsels may also opine on possibility of complaint u/s 406,420 and winding up petition.

I am sending you a few links and you may find these useful and relevant.

 

 

1 Like

Mukesh Bhatnagar   16 March 2017

Dear Mr. Kumar,

Thank you for your replies, am not able to find the Links as specified by you. Below are the answers of your queries.

1. this company is the Manufacturer of Pumps & Motors> As of now because of financial crisis as I wrote in my brief also, they are just making few pumps and motors,if u go by the accounts books they dont even have a turnover of 5 lakh in last 1 year.

2. As no production is there they are nowhere in any state.

3. there philosphy was to hire persons in sales and ask them to get orders from the market along with that 100% advance of that order or atleast 70% advance, by which they'll pay the salaries, buy the Raw material and then fulfill the orders which I am not confident of.

4. I have got to know that they were in the same business around 6-7 years ago, took the money by appointing distributors/dealers and after some time of doing the business, they failed will fully or not I can't say. Lots of cases were there on them and they paid quite good amount to the then distributors/Dealers.

5. Now they have started it again from Jan, 2017 but am surprised to know from the accounts team that they dont have money to bear the initial operation cost like salaries of employees for 2-3 months and daily Tea/Milk espenses . The accountant himself has spend about Rs.70,000 from his pocket for Tea/Milk/buiscuits. No staff member has got the salary till date only PDCs has been given to them even to the Pantry boy. The Security provider has not got the money from last 8 months.

6. As on my last day I was having an heated argument with Mr. Aman(one of the director and younger brother of MD), when I said that you terminated me because of Non- performance can u please tell me what budget company has given to perform  my duties in the Marketing field and tomorrow you'll say the same thing to other employees also - that accountant was not able to get the loans etc , you'll fire them also for Non- performance. they sensed that other employees may can revolt so they issued Appointment letter on 10th March, and on 14th march they gave them One month salary Post dated cheque of 21st March.

7. No bank and other NBFC's are lending them loan because of their negative CIBIL Score and No person/relative is ready to give them personal loan because of their nature.

I hope your most of the queries have been answered, NOW my main concern is whether I"ll file the case in Labour court or Civil Court and whats the procedure of that.

If still you think that some of your queries are left or if you have anhy more queries, I kindly request you to please share your number, so that I can call you and tell you the whole matter/answer your queries.

Thanks & Regards

Mukesh Bhatnagar

Kumar Doab (FIN)     16 March 2017

I have already sent you the links by PM.

While I have empathy with you, you have grossly erredsince you have not inquired about the establishment and employer before joining.

Now easiest way out is: like dealers, you also apply your resources and get your money.

 

Dealers have unions and resourcefulness e.g; political,media, communities, police etc etc  contacts.

 

The establishment has been working in more than 1 state hence it may come under ALC (central) provided you are covered by the def. of Workman.

 

 

Mukesh Bhatnagar   16 March 2017

Dear Mr. Kumar,

If you dont mind, Can i have your number so that I can discuss the same with you.

Regards

Mukesh

 

Ritesh Maity (Labour Law Advocate)     17 March 2017

You may challenge the illegal termination and also demand the outstanding salary. There is no use of going into verbal argument with the company. Start taking actions from the legal point off view. 


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