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Bhavna (marketing service executive)     12 January 2017

Interest on delayed payment of wages

Hi. I have worked with an organisation which never pays salary on time to any of the employee. Attendace cycle is 1st-30/31st of every month and salary is paid on after 25th next month. For e.g. Salary for the month of Aug 2016 (1-31) was paid on 27th September. Can I claim interest on all the late payments till date?



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 8 Replies

Kumar Doab (FIN)     12 January 2017

Who can stop you!

YOU can.

Employer can act on your communications/demands.

If employer is unworthy of being employed with, firm up your next venture ASAP and exit with complete relieving docs and with good comments.

 

Ritesh Maity (Labour Law Advocate)     12 January 2017

As per the various labour laws, the company is supposed to pay the salary within 10th of the next month, but in your case salary is paid around 25th of each month; thus it can be said that on an average there is a delay of 15 days in payment of salary. 

Though the delay is not much, but definitely violation of law. You can in such situation do the following:

1. Verbally ask your employer to pay salary withn 10th of each month.

2. Write to management to make payment within 10th of each month. If possible place a joint letter before the managment containing signatures of other employees.

3. If the management does not take steps, you can complaint to the labour office and legal actions can be taken on that basis (assuming that you fall within the category of workman).

Kumar Doab (FIN)     12 January 2017

In case you are determined then submit gentle communications: first verbal, then written (narrate verbal communications in it) under proper acknowledgment.

Remain amiable.

Obtain salary slips.

If these are backdated; point out verbally, then written.

Build irrefutable written record.

Avoid discussing every day, and writing every day.

Once you have separated with acknowledgment and acceptance of notice of resignation/final resignation, service certificate, reliving letter (with good comments), Correct FnF statement, Form16 as per Correct FnF statement, PF a/c slips of all months, ESIC card, NOC/NDC, acknowledgment of handover of charge, clear BGV etc etc ………………….you can rake up the issue.

 

If there are employee’s unions, Works Committee, Grievance Redressal Cell………………..it can look into the matter.

 

Bhavna (marketing service executive)     12 January 2017

Salary slips are generated on every 7th of the month but payment is done late which reflects in bank statement. 16th Jan will be my last day and I am yet to receive salary of Oct, Nov and Dec. There have been numurous reminders to HR, Accounts and management about the status every month but no one gave proper answer. Since I will be leaving the company now and do not have any threat of loosing the job, I want to ask for compensation of delayed payments. I will get all my documents on 17th January. FnF will be processed with Jan salary. Since salary is already due for 3 months, I am thinking of sending notice upon receipt of all the documents.

1 Like

Kumar Doab (FIN)     12 January 2017

That is precisely what I wanted to convey.

 

Write to good offices of appointing authority, MD (narrate all previous representations to everyone) under proper acknowledgment.

Obtain list of assets of the company/owners.

The bank a/c of the company, from which salary is paid, must be in your own bank.

Obtain all of the above mentioned docs.

Get clearance in BGV (request past, next employer for a copy).

Thereafter pursue:

 

Thru your own skills, 

 

Or take help and support of employee’s/trade unions

Higher Officials of Dept. of labor

Inspector appointed under: Payment of wages Act, Shops & Estbs Act

 

Counsel specializing in Labor/service matters

 

 

NATARAJAN IYER (Proprietor)     28 February 2017

Hmmm...So, basically you have been guided before, by three experts. One - A labour Lawyer; Two - A high court advocate and Three - Kumar Doab.

Now you are back again with the same questions in a different form.

Hmmm...It is because of people like you that many experts stopped helping and a result, because of you, even GENUINE victims suffer due to absence of help.

So, essentially you are working your mind out towards claiming a HUGE amount from that employer and you want to understand how to do it, in such a clever way that legally you will be safe and money too will be in your pocket.

No, it will mis-fire and you might go to jail.

Corporate Law is much more serious than Criminal Law.

If you play around, it can bury you alive. Beware.

 

Sudhir Kumar, Advocate (Advocate)     05 March 2017

You  have been well advised.

Kumar Doab (FIN)     05 March 2017

Act under expert advise and support of your very able counsels. 


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