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Shiv Ranjan Kumar (Sr. Technical Associate)     07 July 2011

Full and final settlement issue

Hi,
I have worked in a startup firm in Delhi named "StratosHear Technologies Pvt Ltd" from Oct 2009 to May 2010. In May 2010, I resigned from the company and upon resignation my official mail id was blocked because of which I did not have acess to the mail. After a couple of days of knowledge transfer, my manager approved for my relieving and I was relieved from the company. At the time of relieving the company provided me relieving letter.

After sometimes, when I enquired with the finance guy regarding my full and final settlement which was somewhere close to Rs. 32000 for first 13 days of May salary, he advised me to talk to the CEO of the company. I talked to the CEO who told me that the company is expecting some payment from the client after which they will be releaseing my full and final settlement amount. I kept following him and he kept extending dates till the time I received my forsm 16 from the company in June. I was shocked to see that the company has added the amount in the salary which they have not yet given to me. I again talked to the CEO and explaind to him all this thing, and he has again started saying me to wait for some more time. I am pretty much frustrated and I need legal help. Can someone please help me in getting my money back?



Learning

 14 Replies

V. VASUDEVAN (LEGAL COUNSEL)     07 July 2011

You can lodge a written complaint with the local commissioner of labour's office and also meet the concerned inspector of labour. Once this process is initiated, the company ought to respond to you.

vasudevan

Kumar Doab (FIN)     07 July 2011

What was the usual mode of disbursement of salary: Transfer in bank a/c, cheque, DD, cash (under receipt on voucher?)

 

You should submit a letter by registered post to your appointing authority, MD/CEO, Company Secretary, HR Head, and mention that despite your representations:

Dated……..to Mr(CEO/HR)………….by phone/ letter/in person, you are not paid the your earned wages which includes……for the period…….totaling to Rs…….

And while Mr (HR) has always asked you to contact Mr(CEO) and Mr(CEO) has always stated that he shall pay the due wages in coming 7 to 10 days, but till date the payment has not been made to you, and HR and CEO have been doing this for the last 14 months, and that the payment should be supplied to you by registered post with in 15 days, failing which you shall be constrained to seek legal advice to initiate action in a lawful manner.

You can demand interest.

If you have record of phone calls made by you from your phone numbers to their phone numbers e.g. phone bill, and if you have any call recording, it shall be useful.

If you do not get reply or payment, you can complain to labor authorities.

The process is simple, and this may solve your problem, and you may get your earned wages during conciliation proceedings only. Kindly take the help of elders in the family, competent and experienced people known to the family/labor consultant/lawyer/law firm.

 

It appears that your HR/CEO want you to consider the amount as a parting gift by you, to them.

 

Like craftsmanship or a skill few tricks are passed on in HR/accounts/legal .......dept of the companies, from senior to junior: that we have dispatched the cheque/courier has been returned to us/courier has not been returned to us. Courier does not maintain records for airway bills older than 6 months. In your case since the amount of salary has already been included in form 16, therefore your HR/CEO must have thought of some unique trick. They can not escape. You were relieved from your duties in May, 2010. Relieving letter is given when all a/c are settled and closed and nothing is due. Thus your last salary would have been disbursed to you by May, 2010. If company claims cheque was issued, cheque is valid for 6 months from date of issue. If the cheque was not encashed company should not include it in their statement of a/c. For obvious reasons company may not claim DD was sent. Moreover is expected to mention the cheque/DD number in F&F, vide which F&F amounts is disbursed. Kindly check your F&F.

You can also lodge complaint with I.Tax authorities, since you are issued form 16 for amounts which are not paid to you. Let the company face the queries, and prove that payments were supplied to you.

You should not accept this form 16.

1 Like

Kumar Doab (FIN)     07 July 2011

Learned Mr. Vasudevan has given valuable advice. Kindly follow the advice.

To  get relief  you should act.

Kindly update the forum as this shall help many who visit the forum.

Sunil (Manager)     18 July 2011

Hello,

I am also facing similar situation. Company has given form 16, relieving letter etc., but not giving dues. I was posted as 'Asst. Manager'.  At present, I am sending reminders to CMD, ED, HR after every 15 days, but nobody is responding. This is going on since 6 months.

Can I lodge complaint with labour commissioiner & IT dept. ?

Kumar Doab (FIN)     19 July 2011

Kindly check the amounts mentioned in F&F. If all amounts are accepted as correct by you, you should receive the final pyable amount from the company. Companies usually pay F&F amounts by a/c payee cheque.

If the company has issued you form 16 as per the amounts stated in   F&F issued to you, but has not actually paid the F&F amounts to you, you have a good reason to represent to IT authorities. Lodge a complaint ( under proper acknowledgment with seal and signature) thru IT comissioner (mention your PAN number and PAN number and TAN number of the company) and let the company reply to the queries.You can raise RTI application to find what action was taken. This shall also move everybody to conclude the matter as per rules.

You may lodge a complaint with o/o Labor comissioner. The designation alone does not decided the employee is a  workman or not. You can avail the consultation from elders in the family, competent and experienced people known to the family and well wishers, labor consultant/lawyer/law firm.

The process is simple and you can handle on your own.

Don't leave your earned wages  as a parting gift with the company.

Be smart.
 

2 Like

Sunil (Manager)     19 July 2011

Thank you very much Mr. Kumar Doab for valuable adivce. Acually for such reasons Company's employee turnover is highest. Company has got vacancies 24 / 7 for various posts. Anyway, its company's problem. Let me solve my problem with company. One small question, my location is Pune and company's HO location is at Chennai. Where should I lodge the complaint ? 

Kumar Doab (FIN)     19 July 2011

If you were located at Pune by the company, you can lodge both complaints at Pune. 

1 Like

Sunil (Manager)     19 July 2011

Thanks Sir, today morning itself I put mail to Finance dept. for revised form 16 or balance payment. But everything is quite at moment. No denial nor acceptance, as usual. Anyway, I will put one reminder with cc to ED & CMD and wait one more day. Otherwise will put complaint. As you rightly said, there is no occasion nor intention to gift my hardearned money to company against descrimination.

Regards.


(Guest)

Hi Please Visit Labor Commissionar.

Sunil (Manager)     22 July 2011

Hello, I searched Income Tax site, but who should I compaint to ? There are various names and designations of officials. Same case is for Labour commissioner. Please help.

Regards.

Human Resource ( HR)     22 July 2011

Simply write the letter addressed to Asst. Commissioner or Commissioner of the concerned department if you have no idea about the name or designation or you may visit the local office and ask for the name of commissioner or director of the department.

--

Regards,

HR

1 Like

(Guest)

Just go to "Labor Commissionar Office" and submit your complaint in written. Do not forgot to take their sign on Xerox copy as they have received it.

They have Divided Whole city into Division so they will internally forward your complaint to concern Divisional Labour person. If you are lucky that person can have phone talk with your company person. If they didnot agree them Labor person will proceed further.
 ( This is what being followed in Pune Labor Office) i am going through it. I am new to this type of world but Rather than paying money to Lawer it is always better to visit Labor Commissionar's office.

1 Like

Kumar Doab (FIN)     22 July 2011

1. Visit the o/o labor commissioner and discuss with the matter.They shall update you on the process.

-For concilliation proceedings, you need to send to submit a demand  notice to the company( you can include reporting authority, Area/Regional or Zonal Head, MD/CEO as the case may be) with a copy to ALC,Labor cum concilliation officer and Labor Comissioner.

-Labor authorities shall proceed further for concilliation proceedings.

Your matter may get resolved during concilliation proceedings. Concilliation officer may allow 3 opportunities with in 45 days.

However all details shall be explained to you by labor officeas per the rules/practices in your state.

It is a simple process, but you should understand everything before you proceed to issue demand notice.

You can take the help of elders in the family, experienced and competent well wishers, or you can consult labor consultant/lawyer/law firm.

If you do not a lawyer to represent you, company can also not send a lawyer. many of the  employees can benefit from it.

2. Visit the o/o IT comissioner and give them the PAN and TAN number of company and they shall search and give the o/o jurisdiction. You can send your complaint there.

1 Like

Sunil (Manager)     22 July 2011

Thanks all, Visited IT Office. Fortunately they have Vigilance dept. Address is ( by post ) : DCIT ( Vig ) o/o CCIT, Pune, AAykar Bhavan, Erandavane, Pune. ( by email ) : puneccit1@gmail.com & dit.vig.wr@gmail.com. Posting all these for the benefit of all who are suffering from irratic behaviour and descrimination. 


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