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Resource Mgr- HR (Resource Manager HR-RMG)     04 November 2014

Employer not paying salary since 1 + years

Sir, I am writing this on behalf of my sister who works with a S/W company in Kerala (Pvt ltd). Since last 1+ years her employer is keep on delaying every month salary other than paying some kind of travel/rent allowances whenever they make repeated requests. Also they are giving repeated commitments by saying " this week, coming week,next Monday, next Friday etc etc.." whever these guys ask for. Employees are scared to escalate this issue by thinking it will affect there future career, if employer shares a termination/ performance release.. Kindly advice.. Thanks..


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 8 Replies

Kumar Doab (FIN)     04 November 2014

As per notification issued by Government of Kerala the software companies are covered as commercial establishments and by stlanding orders.

 

All employee's may join hands and stand as a witness to each other.

All employee can lodge  complaint with:

Inspector under Shops & Commercial Establishment Act

Payment of Wages Act

O/o  Labor Commissioner

IT employees have formed many unions and trade unions are supporting.

In Kerala union's have traditionally been strong.

Unions can also be approached.

If you are fearsome and Don't want to act then don't expect  any resolution from such unscrupulous employers.

Resource Mgr- HR (Resource Manager HR-RMG)     04 November 2014

Thanks for your immediate revert.. Actually as you suggested, instead of joining hands together people trying to move out of the company by considering the future. Employer is getting benefit out of this. I got a chance to speak with ceo (started up this firm as a branch of his US Start up) of the company once. He told me that they have done merging with some US company and as ther are some bank issues going on he is not able to make employees payment. Also he said he is trying to sort it out very soon and mostly by that month end. But as per your suggestion I am updating my sister , to raise compliant under Payment of Wages Act,O/o Labour Commissioner. I really don't know how come they are running the company even without statutory compliance, without paying employees. .that too for these many months by just giving commitments and few rent/travel allowances (2000-3000 out of 15000-18000 salary amount)..Regards,

Kumar Doab (FIN)     04 November 2014

Notice period is also defined in Kerala Shops& Commercial Establishment Act that was enacted to govern service conditions of employees.

Notice period is part of service conditions.

 

The employee shshod narrate everything in writing  and conclude that UN such condition of non payment of Wages hence breach by employer The notice  period has lost sanctity.

Resource Mgr- HR (Resource Manager HR-RMG)     05 November 2014

As per the offer letter NP is 1 month and they are releasing employees in case if they ask for an early release. Also, few raised compliant in police station, instead of Labour commission, I guess and employer shown them as Non performers in thr sheet next moment onwards, to avoid further issues.. they shown it as a performance release.. this is the information I got, while discussing with CEO that day. it happened 4-5 months back . I didn't do anything further by considering his commitment but now its almost 1.5+ years and I am concerned of her future career. As I am working as an HR with an IT Company in Chennai, I am aware of the future documentation issues in Background verifications, if we can not submit proper documents without bank statements or payslips..

Kumar Doab (FIN)     06 November 2014

The state of Kerala had included IT sector in Min. Wages. As per Payment of Wages Act:Sec13A Min. Wages Central Rules 26(3,4) the wage slip/pa slip has to be supplied at least a day before disbursement of wages and should be signed by both employer and employee. Performance is not that easy to prove. Employer can not give false information in BGV. Falsification of record is offence and is stated in Shops& Commercial Establishment Act too.

Resource Mgr- HR (Resource Manager HR-RMG)     24 April 2015

Hi, Sir, She got relived from the above company by Jan ’15 third week by collecting exit documents. Now she is having below documents with her. 1) Offer letter, which she received while time of joining(2013) 2) Salary revision letter along with successful Training completion details (her monthly salary is 12000) 3) Exp Letter for 2 years 4) Reference letter stating Employer is fully satisfied with her tenure 5) Reliving Letter 6)Cheque of 50K dated 26th Jan’15 with 3 months validity(till 26th April’15)and 7) Letter stating another 35K salary amount pending from employer end(excluding above given cheque of 50k). In Company letter head and seal.. We have submitted above cheque by Jan’15 and received memo from bank stating insufficient fund in company account. Later we had many discussions with her employer but they were asking my sister to hold on for few more weeks. Now as the validity going to expire by 26th of Apr’15 we met an advocate and as per his advice,submitted cheque copy along with above exp documents copy, salary pending acceptance letter received from company and memo received from Bank stating insufficient fund. Also advocate sent 3 notice (one to CEO/one to MD/ One to CEO’s home address) as a first cut and hope he received the same. Later employer made a threatening call to our home and challenged do whatever you can. As of now we are awaiting till 26th Apr’15(as its last date given in cheque for 50000),and if the employer fails to credit the total amount of 85000, what should be the next process.. Shall we raise complaint in EPFO Kerala address? Police station complaint is required? How a company can operate without providing PF or other statutory part to employees? Or whether its not mandatory in Kerala J ? As per my knowledge we cannot keep an employee with consolidated pay by not giving statutory benefits even if the salary is just 5000. Whether employer can raise Performance issue now just to bring up a favourable point for them, when they themselves given Reference letter stating company is fully satisfied with her performance, in company letterhead and seal. Awaiting your earliest response.. Thanks in advance..

Kumar Doab (FIN)     24 April 2015

Cheque Bounce: Case could be filed under NI Act.

Police/Criminal complaint:u/s 406,420 can be filed

Unpaid wages are debt on employer and winding up petition can be filed.

PF; Complaint with RPFC with a copy to Addl.CPFC,CPFC can be filed preferably in person thru RPFC in nearest PF office/ thru Redg. Post by letter and pursue thru RTI....

 

ESIC; is applicable and complaint with jurisdictional ESI office can be filed.

 

Bonus; to be paid by 30th NOv or complaint with o/o Labor Commissioner can be filed.

 

Complaint with Inspector appointed under : Kerala Shops and Estbs Act, Payment of Wages Act can be filed.

 

Employee's/Trade Unions can be approached. YOu can also approach media, CM, State Minister of Labor, community leaders etc...

Resource Mgr- HR (Resource Manager HR-RMG)     24 April 2015

Thanks for your immediate revert, Sir.. Will do the same and come back at the earliest.. Thanks..

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