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saly paul   03 July 2015

Employment termination

Sir:

 

I am employed with M/s. Perfect Pincode PVT, Kerala which has the H/O in Hyderabad.  I joined in late July 2014 as Real Estate Manager.CTC is 4 lac. When I joined they provide me with a employment contract with just a basic information. It did not mention about the sales targets or incentive structure.

However the head of State who conducted the interview promised to give 13% incentive plus 3000 for conveyanace and tel bill. As a manager I am allowed to recruit part time sales people and they will be getting a comminsion of o.50% on the totoal revenue generated [ this has written contract].

 

I did the first sale in Oct 2014 which generated Rs 1,20,000. and more sales done in the following months. my total sale was around 7 lacs.  Since march 2015, th company asked me to change the sytle of business and I was not allowed to contact any clients or developers.  They said every appoints will be done thru sales cordinators.  However from March to June not a single appointment was given to me. During this period they asked me to visit banks and collect leads and submit to the company which i did. Company use to prodvide me client leads till March from which I generated the business. This was stopped in Feb end.

 

Back to Oct 2014.  Since obter I was asking the companythe incentive.  everytime they gave excuses and finally in June they came up with a incentive structure. Now the incentive is only 0.125% and that also if I generate rs 125000 after tds.  Telephone bill is reduced to 500 and conveyance to 1000 per month.

I did received 10500 as incentive and did not clarify for which revenue that belongs to. The managers or the accountant failed reply my emails.

 

In June they informed me by telephone that If I dont produce 2 business, I will not be in the system.

 

On 30the June, they asked me to submit resignation.  They gave me two option. 1, resignation and they will credit my salary and rest of the settlement will follow. [ my collegue did resign but her salary did not credit so far] [ I would mention that in June 1-15, the did provide few company leads which I am following]

2nd option was that they will block my salary and use my Pan card and inform every HR in the country bad about me and destroy my career.

 

The above was conveyed to me personally and no written email.

I requested them to send me a mail but they refused.  The company never ever send any official mail but they do on the daily activities.

 

I told them that I need this job and I cant resign.  

 

July1:  The office is closed and the security told us and my collegue are not allowed to enter the premises.  Our email address are blocked.  WE havenot received any salary or terminattion letter.

I am still following the up the clients as usual from Home.

I had send a letter similar to this to the Managing director, Mr. Mohit Ralhane who is the partner of Indus Balaji.

 

So far I haven't received any reply from them.

 

Kindly advice as to what action we can take to solve this problem.

 

Regards

 

Saly.

 

 

 

 

 



Learning

 5 Replies

Kumar Doab (FIN)     03 July 2015

 

You have posted that:

 

---“I did received 10500 as incentive and did not clarify for which revenue that belongs to. The managers or the accountant failed reply my emails.”

“However the head of State who conducted the interview promised to give 13% incentive plus 3000 for conveyanace and tel bill.”

Did you mention in emails that the company thru head of State conducted the interview promised to give 13% incentive plus 3000 for conveyance and telephone bill?

The incentives are taxable component and company has to show these in salary slip,Form16.

The conveyance, telephone bill are collected by the company to reimburse and provide relief from Income tax, and a reimbursement slip is supplied, so that these are not computed for TDS and Form16.

 

---“ Telephone bill is reduced to 500 and conveyance to 1000 per month.”

The wages/allowances etc once granted should not (can not ) be taken back!

Until or unless, you have agreed to it in writing.

 

---“ In June they informed me by telephone that If I dont produce 2 business, I will not be in the system.

 

This is threat. Company can issue targets, however can’t hang it as dagger.

The company has top provide training and support to help achieve its objectives that are divided amongst its employees. Moreover underperformance is not that easy to prove.

 

---“On 30the June, they asked me to submit resignation.  They gave me two option. 1, resignation and they will credit my salary and rest of the settlement will follow. [ my collegue did resign but her salary did not credit so far]”

 

Demanding resignation is offence and you can even lodge police/criminal complaint.

This can be deemed termination.

 

---“[ I would mention that in June 1-15, the did provide few company leads which I am following]”

Don’t feel obliged by it. It is duty of the company.

 

---“2nd option was that they will block my salary and use my Pan card and inform every HR in the country bad about me and destroy my career.”

The employee can lodge complaint the moment his salary is delayed even by a day from the fixed salary day as per various labor law e.g Payment of Wages Act, (Name of the state) Shops and Commercial Establishments Act etc, and company can be penalized say Rs.7500/instance.

 

---“The above was conveyed to me personally and no written email.”

The termination has to be conveyed by a speaking (written) order by effective modes of communication e.g Redg. Post.

 

---“I requested them to send me a mail but they refused.  The company never ever send any official mail but they do on the daily activities.”

This is unfair labor practice.

 

---“I told them that I need this job and I cant resign.”

The company can terminate on valid reason after issuing show cause notice and domestic inquiry.  

 

---“ July1:  The office is closed and the security told us and my collegue are not allowed to enter the premises.”

Did you cover it in minutes even if by email? You must send such communication to appointing authority, MD etc even if email mentioned at website of the company by attaching the screenshot of website showing email of the company.

Continue to send reports from home under proper acknowledgment even if by emails, and mark your attendance and remain eligible for full salary and allowances.

 

---““ Our email address are blocked.”

Communicate from personal email id and charge for the visit to cyber café/parking etc and obtain valid Bill from cyber café.

Demand advance to meet office expenses.

 

---“ WE havenot received any salary or terminattion letter.” 

Demand to supply salary slip of each month, so as to reach you in say next 3 days alongwith payment of salary by bank DD by Regd. Post only.

 

Claim that you are unable to meet expenses without salary and shall be at home (mention address with pin code) and should be marked present.

 

---“ I am still following the up the clients as usual from Home.’

Maintain full record and clients should confirm that you have visited them on dated……………….as in reports. Maintain full record and do sign in visitors register and note that if the client is in CCTV area. Note time and date.

 

---“ So far I haven't received any reply from them.”

 

---“ I am employed with M/s. Perfect Pincode PVT, Kerala which has the H/O in Hyderabad.”

How many persons direct/indirect/contractual etc were employed at any point of time in Kerala and pan India?

Was the office in Kerala registered under Kerala Shops and Commercial Establishments Act?

It should have or it might be violation of the Act inviting penalty.

 

---“ As a manager I am allowed to recruit part time sales people and they will be getting a comminsion of o.50% on the totoal revenue generated [ this has written contract].”

 

A Development officer of LIC recruits insurance agents on commission and is still covered as ‘Workman’ as in ID Act.

You should get covered as ‘Workman’ and also as ‘Employee’ as in Kerala Shops and Commercial Establishments Act, and can approach:

 

Inspector appointed under Kerala Shops and Commercial Establishments Act.

Payment of Wages Act

O/o Labor Commissioner (check if company has notified before closing the office)

Employee’s Unions/Trade Unions e.g. CITU/INTUC/AITUC/BMS etc………….have traditionally been strong in Kerala. Approach them.

 

Labor Law Consultant/service Matters Lawyer/Law firm

 Your counsels may opine that you can lodge complaint u/s 406,420………………………and also file winding up petition as unpaid wages are debt of employer.

 

All affected employees may join hands and stand as witness to each other.

 

1 Like

saly paul   03 July 2015

This company has total staff of 60.  Kerala has only 4.

Kumar Doab (FIN)     04 July 2015

Approach the authorities/forums  as already pointed out.

If company claims that it treats all employees as if located in Hyderabad from where it administers then claim service  compensation also as per Andhra Pradesh Shops and Commercial Establishments Act Sec;47…………… every termination shall be made by the employer in writing and a copy of such termination order shall be furnished to the Inspector having jurisdiction over the area within three days of such termination.

 

The Kerala Office should have been registered. Even if not approach Inpsector appointed under Kerala Shops and Commercial Establishments Act.

1 Like

Dr J C Vashista (Advocate)     05 July 2015

Too long story and not a query, consult a local lawyer.

1 Like

saly paul   10 July 2015

Updating:

 

I went to the Labour officer yesterday.  Officer told me that if the salary is above 18k, I should go the labour court.  So I am meeting an Lawyer today.

 

The Union leaders have already spoke to the Management but they were very abusive.  The office still remain closed.

 

Thanks


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