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Sid (consultant)     10 January 2013

Full & final settlement dues pending from former employer

 

This query is for a case of not getting final settlement salary from a former employer. To maintain confidentiality, I will use aliases for the name of company.

I was employed by ABC Consultancy in the first week of July 2012. I was taken on a contract-to-hire position for company XYZ Pvt. Ltd., which meant that after 6 months I could be hired as a permanent employee of XYZ, with inclusion in payroll. My offer letter from ABC stated that from day 1 of my employment I would be “deputed” to work with XYZ.

I decided to leave the company in second week of Oct 2012. My offer letter said that I need to serve a month’s notice period, in violation of which the company will recover 1 month’s salary. It also said that the company had discretion of choosing not to ask for serving notice period. Now, I did not ask for it but the company chose to relieve me from the services the same day. They did not ask me to serve the notice period. At the time of relieving, I had not received the salary for the month of Sep. They said that the Sep salary plus Oct Salary (for the number of days that I had served) will be given to me as full and final settlement in a few days.

Till date I have not received any money from ABC. I have followed up on mail, phone several times. They are trying to put the onus on XYZ for not paying my salary. This, I understand is not correct because I was on the payroll of ABC and not XYZ and every time salary was credited to my account by ABC. I have email proofs in which ABC has acknowledged that they owe me money.

What is the legal recourse that I can take in this case and what are the steps to be followed in giving a legal notice to company. Please advice.



Learning

 3 Replies

Kumar Doab (FIN)     10 January 2013

As offer letter is issued by ABC, salary is paid by ABC you are on contracted employment/association with ABC.

 

You have posted that;

 

--“ It also said that the company had discretion of choosing not to ask for serving notice period.”

You have the option not to agitate if company tenders payment of notice period to you.

Otherwise if you have tendered notice of resignation/mentioned effective date of resignation/last day in office your resignation can not be accepted before this date.

Refer to SC Judgment:

Supreme Court of India

Nand Keshwar Prasad vs Indian Farmers Fertilizers ... on 1 April, 1998

 

“11. After giving our careful consideration to the facts and circumstances of the case, it appears to us that the law is well settled by this Court in a number of decisions that unless controlled by condition of service or the statutory provisions, the retirement mentioned in the letter of resignation must take effect from the date mentioned therein and such date cannot be advanced by accepting the resignation from an earlier date when the employee concerned did not intend to retire from such earlier date. It has also been held by this Court that it is open to the employee concerned to withdraw letter of resignation before the same becomes effective”

 

 

Demand from good office of your appointing authority/MD/CEO/Company Secretary, correct FNF statement from your employer company ABC , payment of FNF dues by bank DD only, correct last salary slip, along with service/work experience certificate, relieving letter, Form 16 as per correct FNF statement, PF number/a/c slips for period of service/attested copies of withdrawal/transfer forms for submission by you to PF office by redg post only and mention that a postage prepaid self addressed envelope is enclosed for supplying the reply, documents, payment to you so as to reach you in say next …7 days.

Narrate all representations made by you so far in person, by phone, by email mentioning date, persons contacted, minutes of discussion, etc

 

If the good offices also do not provide any relief you may approach a competent and experienced labor consultant/service lawyer with copies of all documents and record and you lawyer may ask you a set of structured questions and opine that you fall within the category of workman. Designation alone does not decide employee is a workman or not.

In a given situation employee can invoke the provisions of SE Act, IESO Act, ID Act, Payment of wages Act… etc as per explanation of employee under these enactments.

The company may yield to legal notice of your lawyer or demand notice thru conciliation officer, Inspector under SE Act, Wages Inspector or you may have to appropriate forum.

If ABC is covered under IESO Act/has framed its certified standing orders/ model standing borers then it should pay all wages to the employee on last day in office along with service certificate.

SCHEDULE I

[1][1][MODEL STANDING ORDERS

13.  Termination of employment.-- (3)             Where the employment of any workmen is terminated, the wages earned by him and other dues, if any, shall be paid before the expiry of the second working day from the day on which his employment is terminated.

 

16.  Certificate on termination of service.--Every permanent  workman shall be entitled to a service certificate at the time of his dismissal, discharge or retirement from service.

 

NOTE. - There is a provision under  this  Act for issuing a service certificate at the time of  dismissal, discharge or retirement and every person is entitled to take such certificate.

 

You may proceed under expert advice of your lawyer.

 

--“ I was employed by ABC Consultancy in the first week of July 2012.”

You have termed your relations ship as that of Employer and Employee by using term employed.

“My offer letter from ABC stated that”

Has ABS issued you an appointment letter also after issuing offer letter?

 

Offer letter is given on selection to selected candidates and appointment letter is given on joining the company. Appointment letter contains service conditions including notice period/pay, designation, emoluments etc…

The offer letter issued to you could be for some contract job as consultant and not a full time employment.

after 6 months I could be hired as a permanent employee of XYZ,”

Is XYZ some subsidiary of ABC?

 

What is the association/relationship of ABC with XYZ or control of ABC upon XYZ that it can announce/state in its offer letter that after say….6 months XYZ can/shall employ you.

Does ABC have such a clause in its contract with XYZ or does ABC have a contract with XYZ at all??

 

If you are not an employee of ABC then it is felt that you may have to approach civil court.

However let the opinion of your lawyer should be the final opinion. Kindly proceed under expert advice of your lawyer.

Valuable advice of learned experts/members is sought.




Attached File : 844279613 nand keshwar prasad vs indian farmers fertilizers ... on 1 april, 1998(1).pdf, 844279613 model%20standing%20orders.doc downloaded: 267 times

vijay (executive)     07 December 2014

Respected experts,

 

I worked for a company RAJ ANALYTICAL SOLUTTIONS PVT LIMT in a business management position.I resigned on sept 02/09/2014  from the company due to the irregularities in the performance  I served my complete  with complete satisfaction but performance is not standard ful and final l settlement report, which indicates about RS 30,000/-ruppes payable to me by the company. These dues include the sign-on bonus promised to me at the time of joining (july 2014) and dues is not cleard. As per the company policy, I am supposed to get the F&F dues cleared within 40 days.

 

But till date, the company has not responded to my queries about the payment. They keep saying that as soon as they have enough funds, they will pay me. But they seem to be functioning normally otherwise. .


In such case, what legal recourse do I have so that I can get my dues clear?


Thanks in advance for your opinions.

vijay (executive)     07 December 2014

Respected experts,

 

I worked for a company RAJ ANALYTICAL SOLUTTIONS PVT LIMT in a business management position.I resigned on sept 02/09/2014  from the company due to the irregularities in the performance  I served my complete  with complete satisfaction but performance is not standard ful and final l settlement report, which indicates about RS 30,000/-ruppes payable to me by the company. These dues include the sign-on bonus promised to me at the time of joining (july 2014) and dues is not cleard. As per the company policy, I am supposed to get the F&F dues cleared within 40 days.

 

But till date, the company has not responded to my queries about the payment. They keep saying that as soon as they have enough funds, they will pay me. But they seem to be functioning normally otherwise. .


In such case, what legal recourse do I have so that I can get my dues clear?


Thanks in advance for your opinions.

vijay kumar


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