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Vishaka lakshmi (HR)     14 April 2015

Salary delayed

I work for a private company which is not paying its employers salary on time. Our march salary has not yet been received to this day and is speculated to be delayed beyond 20th April. The reason stated is that the company is not having enough funds at present. Yet, the company is continuing to recruit new employees. Is there any law which protects private company employees, especially women employees?



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 2 Replies

Kumar Doab (FIN)     14 April 2015

You may check if the establishment is Commercial or Industrial etc!

You are in which state and what is the notice period inserted in appointment letter?

Has the salary slip been supplied?

 

Consult an able Labor Law Consultant/Service matters lawyer/Law firm and proceed under expert advice of your counsel. Employee should always retain access to an able Labor Law Consultant/Service matters lawyer/Law firm.

 

There are many  employees/female  unions and unions  have also affiliated with Trade Unions e.g. CITU/INTUC/AITUC/BMS etc and employee should become a member and be properly informed and supported.

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

The employer might be aware that existing employees might be contemplating to separate and it might have also planned to square off the dues by adjusting notice pay.

The new recruitment might be to check attrition and keep the work going on.

The employer that doesn’t pay wages/benefits/payouts on time is unworthy to be employed with.

If employer has not been paying wages then notice period has lost its sanctity.

Employee should demand to supply acknowledgment of notice of resignation/final resignation,acceptance of resignation,service certificate,relieving letter,correct original FnF statement showing computation of earned wages/bonus/leave encashment/reimbursements/incentives etc ,salary slips of all months,Form16, NOC/NDC, PF number with a/c slips of all years,ESIC card etc…….and must mention in notice of resignation/resignation/subsequent communications the reason of resignation e.g. non payment of earned wages etc……………

 

The company might have registered under (Name of the state) Shops and Establishments Act. The Act as in your state may not discriminate between ‘Workman’ and ‘Non Workman’ and all of you may be very well covered by the Act. One of the duties of the Inspector appointed under the Act is to ensure that monthly wages/FnF wages are paid in time/on the fixed/usual date of payment of wages………………….and all relieving documents are supplied.

Your counsel may opine that you shall also be covered as ‘Workman’ as in ID Act and standing orders (model/certified) Shall apply and you may go thru Model Standing Orders ;Sec13-18………

As per ID Act employee’s can form ‘Works Committee’ that is an authority…………….and many states like Karnataka has made it mandatory to form GRC………….and President is from employees with equal no. of employees………………So unite and defend your rights..

 

1.       You may be covered by Payment of Wages Act also that is applicable to all employees drawing wages upto Rs.18000/pm as per def. of wages in this Act.

Salary slip is to be supplied atleast a day before fixed date of  payment of wages and should be signed by both employer and employee,::::Payment of Wages Act;Sec13A/Min Wages Central Rules:Sec26(3,4)….and salary slip has to show earned wages, deductions e.g. statutory deductions PF,ESIC,TDS etc and no deduction without explicit consent of employee.

The employee can lodge a complaint the moment payment of earned wages is delayed even if by a day and employer can be penalized say Rs.7500/instance…….

The complaint can be lodged (under proper acknowledgment) with Inspector appointed under:

(Name of the state) Shops and Establishments Act

Payment of Wages Act

O/O Labor Commissioner

The labor Inspector in local O/O Labor Commissioner might also be functioning as Inspector appointed under these Acts………………and O/O Labor Commissioner can provide you contact details and advise further.

 

 

 

2.       If salary is not processed/paid then employer has defaulted on PF,ESIC,TDS…

PF,ESIC  is applicable to all employees drawing wages upto Rs.15000/pm as per def. of wages in the Act……………..and employer has to supply the PF number/account slips of each year, ESIC card….

For TDS Form16 has to be supplied

 In case of default by employer complaint can be lodged with:

Thru RPFC in nearest PF office under proper acknowledgment

ESIC office

ITO-TDS where you file ITR and CIT-TDS where employer files ITR

Unpaid wages are debt on employer.

 

 

If employer doesn’t pay then your counsel may advise that you can lodge complaint u/s 406,420…..and file ‘Winding Up’ petition too……

 

 

 

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     14 April 2015

Your grievance can be submitted with nearest labour commissioner with all employees signatures 


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