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syed allham (csr)     05 February 2017

Employer withhelding last month salary and asking to wait 45

Dear Respected Lawyerslucb Members,

I work for a private Ltd e-commerce start-up company in Bangalore, I worked there for 8 months and had to quit last month since the employer was not paying us salary from Nov 2016, It was mutually agreed from the HR and employer that my final date will be 17th Jan and the salaries for the last 2 months and the 17 days will be paid. I received my 2 months salary on 25th Jan & the employer asked me to deposit the company laptop after which the final 17 days salary, relieving letter will be paid. 

Now the company is in a situation where they have lay down more than 20 employees across the department due to financial issues and have asked everybody to deposit their laptops the next Tuesday 07-02-2017. We are not sure about the future operations of the company and the company has already vacated their office and are planning to start from somewhere else; which is again not guaranteed. The employer now is informing is saying that our salaries will be paid after 45 days from the day of depositing the asset. The HR is a third part consultant and we have no direct contact with the employer now, We are not sure what to do as we are sure that the company has no intention clear our remaining dues, they just want to take their laptops back and we don't want to return the laptop if the employer is not willing to settle the dues and relieving on spot. I request the respected member of the website to assist us with their legal opinion and help us in settling the dispute. We have no jobs in our hands and the employer has laid down employees without giving any financial aid. Thank you.



Learning

 27 Replies

Kumar Doab (FIN)     05 February 2017

What is your designation and nature of duties? (Likewise for others)

Has any appointment letter been issued to you?

Have you narrated in writing the reason for resignation ( Non Payment of wages)  in notice of resignation or subsequent communications? 

What was notice period applicable to you as per appointment letter?

Have you tendered notice of resignation or resignation with immediate effect?

What was notice period tendered by you?

Has employer issued LWD in writing to you?

Has employer issued any communication on closure, lay off, retrenchment,……………….date of payment of wages to employees…………………..to deposit assets?

Has employer been issuing salary slips, Form16, PF number PF a/c slips, ESIC card?

Do you know whereabouts, assets of employer?

Are you member of any IT/ITeS employee’s/employee’s/trade unions?

What was your monthly salary and its break up?

 

Kumar Doab (FIN)     05 February 2017

All employees may join hands and approach IT/ITeS employee’s/employee’s/trade unions, a very able counsel specializing in labor/Service matters  and lodge complaint under proper acknowledgment with:

Grievance Redressal committee constituted by state govt

Higher Officials of Dept. of Labor

Inspector appointed under Karnataka Shops & Estbs Act, Payment of Wages Act

O/o Labor Commissioner

RPFC in local office of EPFO (if PF is applicable)

Jurisdictional ESIC office ( if ESIC is applicable)

CIT-TDS

Police

Create Noise and get the employer and assets located.

Kingfisher episode is still fresh in minds.

Log on to website of Dept. of Labor Karnataka and get list and addresses of Trade Unions and labor officials……………

 

1 Like

syed allham (csr)     05 February 2017

Dear Sir thanks for your response, Below are the answers to your questions.

What is your designation and nature of duties? (Likewise for others)

I worked there as an Assistant manager in the customer care and operations department. And the other laid down employees are from the engineer, content development, and marketing team.

Has any appointment letter been issued to you? Have you narrated in writing the reason for resignation ( Non Payment of wages)  in notice of resignation or subsequent communications? 

Yes, appointment letter and offer letter was given when I joined, And I have clearly mentioned to HR head in an email that the reason for resignation is because of unpaid dues.

What was notice period applicable to you as per appointment letter? Have you tendered notice of resignation or resignation with immediate effect?

I resigned on 7th Jan and received a response from the COO that my last date would be 11th Jan but later they agreed to relieve me by 17th Jan as I had to do knowledge transfer to other colleagues.

What was notice period tendered by you?

2 months notice is mentioned in the offer letter and the COO & the HR have agreed to relieve me on 17th Jan and I have that in written.

Has employer issued LWD in writing to you? Has employer issued any communication on closure, lay off, retrenchment,……………….date of payment of wages to employees…………………..to deposit assets?

The employer has informed the other laid down employees through an email that they no longer will be employed and there is no update on the closure. And the date of payment of wages is not mentioned but they have asked us to deposit the laptop on 7th Feb 2017.

Has employer been issuing salary slips, Form16, PF number PF a/c slips, ESIC card?

There was no PF, ESIC, but payslips were given till October 2016.

Do you know whereabouts, assets of employer? Are you a member of any IT/ITeS employee’s/employee’s/trade unions?

No, I'm not part of any trade union.

What was your monthly salary and its break up?
480000 PA, Basic salary 240000, I received 39800 every month as salary.

Thanks you

syed allham (csr)     05 February 2017

Sure I will wait,Thank you for your response.

Kumar Doab (FIN)     05 February 2017

Mr. Helping Hand is from Bangalore.

 

If you wish you can access him thru hisn profile.

 

 

 

1 Like

syed allham (csr)     05 February 2017

Sir can you share his profile link

Kumar Doab (FIN)     05 February 2017

Mr. Helping Hand,

https://www.lawyersclubindia.com/profile.asp?member_id=84464

 

syed allham (csr)     06 February 2017

Dear Respected Lawyersclub Members, 

Greetings for the day!

Your opinion is highly appreciable and waiting for the final opinion so that the same can be implemented to solve the dispute.

Thanks in advance.

Ms.Usha Kapoor (CEO)     06 February 2017

Laid Off Employees: What Compensation is Available?

If you lose your job in a layoff, you may be entitled to severance, unemployment benefits, or other forms of compensation.

Need Professional Help? Talk to a Wrongful Termination attorney.

Please answer a few questions to help us match you with attorneys in your area.

The employer is bound to return all uour  sdues in ADDITION TO COMPENSATRION ALONG WIUTH OTHER BENEFITS SUCH AS pf, GRATUITY AND lEGAL REMEDIES  and also unemployment benefits.If he doesn't pay you can agitate fo ryour rights in labor court.
 
 
 

During these tough economic times, plenty of employees worry about losing their jobs -- and their income -- in a layoff. It's a frightening prospect to be without a paycheck, even for a short period of time. But there are some forms of compensation that may be available to laid-off employees. 

Option 1: Money Your Employer Owes You

The first place to look for compensation is money you have already earned. For example, you are entitled to receive your final paycheck, compensating you for all of your hours worked, in fairly short order after a layoff. (For state-by-state information, see Nolo's Chart: Final Paychecks for Departing Employees.) In many states, employers also have to cash out any accrued, unused vacation time when you lose your job. If there are other amounts you've earned but not been paid -- for example, commissions -- you are entitled to that money, too. And don't forget expense reimbursements you are owed.

Option 2: Severance

There are two ways a laid-off worker might be entitled to severance: state law might require it, or the employer's policies or practices might provide for it. 

State laws requiring severance. In a handful of states, an employer that conducts certain types of layoffs is required to pay a small amount of severance and/or pay to continue employee health benefits for a period of time. These laws are similar to the federal WARN Act, which requires employers who lay off a large number of workers or close an entire plant to give the affected employees a certain amount of advance notice. In some states, the laws go further to require employers to provide some severance pay. In Maine, for example, employers who discontinue business operations or relocate at least 100 miles away must pay laid-off employees who have been with the company for at least three years one week of severance pay for each year of work. Very few states have this types of requirement; to find out if yours is one of them, contact your state's labor department. 

Employer severance policies. If your employer has a policy promising severance or a practice of offering it, you are entitled to severance pay. For example, many companies routinely pay employees who are laid off one week of pay for each year of service with the company. Companies that put this practice in writing (for example, by promising it in an employment contract or by adopting a written severance policy) can be held to it. Even companies that have no written severance policies may be legally required to provide it, if they have always paid severance to laid-off employees in the past. At some point, a regular practice like this becomes a type of contract, which the company can be held to. 

Option 3: Unemployment Benefits

If you lose your job through no fault of your own, you will likely be entitled to unemployment benefits while you look for new work. Unemployment insurance is a joint program of the federal and state governments. Although each state has its own eligibility requirements, generally workers are eligible if:

  • they have worked a minimum amount of time, earned a minimum amount, or both (depending on the state's rules) before applying for benefits
  • they are out of work through no fault of their own (employees who are laid off for financial reasons meet this requirement), and
  • they are able, available, and actively looking for work. (For more on all of these requirements, see Eligibility for Benefits.)

The amount of benefits varies widely from state to state, but it always depends on your prior earnings. Unemployment benefits are intended as a partial wage replacement: Theoretically, they pay employees enough to get by without creating a disincentive for employees to find new work. (Undoubtedly, plenty of employees would dispute whether unemployment really pays enough to live on; to find out more about how much you'll get, see Amount and Duration of Benefits.)

If you are laid off, you should file a claim for unemployment right away. Many states impose a waiting period, so you'll want to get the ball rolling as quickly as possible. To find out how to file a claim, go to your state's unemployment agency website; you can find links and more information at State Unemployment Agencies

Option 4: Workers' Compensation

Workers' comp isn't a form of severance pay, but you may be entitled to receive it even after you are laid off. Workers' comp is a form of insurance that most employers are required to carry. Employees who suffer work-related injuries or illnesses are entitled to certain benefits through workers' comp, including medical expenses, partial income replacement, and perhaps vocational rehabilitation benefits. If you are out on workers' comp leave when you are laid off, you may be entitled to continue your benefits until you are released to work, even though your former employer won't be able to rehire you when that happens. 

If you lose your job while on workers' compensation, pay close attention to the situation. It's perfectly legal for an employer to lay off an employee who has an active workers' comp claim, as long as the layoff isn't related to the claim. For example, if your employer lays off your whole department or closes the facility where you worked, it doesn't have to make a special arrangement to protect your job just because you're on workers' comp. However, an employer may not lay off or fire an employee because of that employee's workers' comp claim. For example, if you are the only one who loses your job, and your employer has indicated that it's because of your injury, calling your termination a "layoff" won't protect the employer from liability. If you are in this situation, speak to an experienced workers' comp lawyer right away. 

Option 5:  Legal Remedies

Not every layoff is legal. You may have grounds for a lawsuit if, for example, you lost your job due to discrimination or retaliation. For instance, if your employer conducted a layoff in which it terminated mostly older workers, that might be age discrimination. If you appreciate this answer please give me a like onmy profile.

Even if your layoff is legal, you may have legal claims against your employer that predate your termination. For example, perhaps your employer owes you unpaid commissions or never paid you for working off the clock. If you want to pursue potential legal claims against a former employer, you should speak to an employment lawyer. 

1 Like

syed allham (csr)     06 February 2017

This is the below reply which i received from the HR.

Please find below the exit formalities sequence in response to your queries:

 

1) The company assets needs to be handed over and clearance mail to be taken from your manager.

2) Relieving Letter and Experience would be mailed the next day after handing over the company assets.

3) F&F, TDS docs to be shared with you within 45 days of handing over the company assets.

 

If you have any further queries then it shall be answered on Tuesday, hence attendance is a must.

syed allham (csr)     06 February 2017

Please find below the exit formalities sequence in response to your queries:

Reply received from HR.

1) The company assets needs to be handed over and clearance mail to be taken from your manager.

2) Relieving Letter and Experience would be mailed the next day after handing over the company assets.

3) F&F, TDS docs to be shared with you within 45 days of handing over the company assets.

 

If you have any further queries then it shall be answered on Tuesday, hence attendance is a must.

Kumar Doab (FIN)     06 February 2017

You have posted that:

I received my 2 months salary on 25th Jan & the employer asked me to deposit the company laptop after which the final 17 days salary, relieving letter will be paid………………….. I received 39800 every month as salary.

So your dues are: 39800/26*17=Rs.26023/-

Hope the current value of laptop in your custody is this much only or slightly higher or slightly lower.

 

The mail from HR (third party contracted by employer) seems to be pointing to concurrence to settle the FnF and provide employment related docs and TDS/Form16, subject to conditions of submission of assets of company and time period of 45days.

One Perspective is that you may go for it.

You are closes to the facts and you need to apply your own judgment.

syed allham (csr)     06 February 2017

Sir, I was ready to deposit the laptop the very next day, I kept on following up with the HR and finally, she replied yesterday stating that I should deposit the laptop tom. The laptop worth currently is 33k in the market and I have no interest in keeping it the total amount including my leaves is around 30k. The employer is playing it very safely they are working from a new office but they want us to meet them in the old office. I and the other 19 employees are sure that we will not be getting our F&F, hence we are trying not to give the laptop until we get any update. I just want to know what is the legal way of handling it and how can we get our money. Thanks.

Kumar Doab (FIN)     06 February 2017

>>> You are asking for others also.

You have not succeeded to get any communication from employer that it is closing down due to reasons…………………e.g; NO funds to continue.

You seem to have NO evidence that employer is closing.

The third party HR is contracted by employer, so that a professional is there, so as to see that NO damaging liability is fastened on employer.

The conditions laid by third party HR are terse.

Third party HR can refuse everything until you comply, citing its contractual obligations with your employer.

If you don’t get Relieving Letter and Experience/Service certificate you may not be accepted by next employer and BGV rights may still be with third party HR and it may not clear BGV.

So submit assets and get Relieving Letter and Experience/Service certificate and remain employable as precedence’s of industry.

Try to get good comments in relieving letter and avoid without comments and adverse comments.

You are closes to the facts and you need to apply your own judgment.


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