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Jyoti (Associate)     02 January 2014

Labour law for the third party employment

Hi,

I am currently working with a company on a third party payroll since last 3year. My salary has not increased since I have joined nor I have got any bonus. When I approced the parent company (Company which issued me the offer letter) they said that they can hike or give bonus only if the clientel company agress to pay it.

I would like to inform you that my client company is itself a new company and increment for other employees and consultants who were on third party payroll had been done in the first year only. Later they have stopped giving the increment or bonus to all the employees, But I am not sure about reason why I had been left out at that time also.

Now the client company is planning to shift me under some others parent company.

Please help on the following query.

1. Can i ask for increment before tranfering me to the other company?

2. What are the rights of the emplyee in such a case?

3. Can you please suggest anything?

 



 3 Replies

Kumar Doab (FIN)     02 January 2014

 

You are employee of company that has issued appointment letter/ offer letter to you.

 

First of all be clear that offer letter is issued after selection and appointment letter is issued on appointment.

You should get appointment letter.

Does the company issues pay/wage slip every month, and provide for PF, ESIC, Group Insurance, Gratuity etc.........

If you are eligible you should all of these...............................from establishment that has employed you.

 

If you are skilled, qualified, and are not overage try to be with some good company with good HR practices.

These kinds of companies are OK for very beginning/initial years and are not meant to work for whole life time.

 

>> Bonus: is to be paid for each year of employment by the establishment that has issued appointment letter/ offer letter to you.

It should have been paid before 30th Nov each year and now company is liable for punishment and penalty.

Raide a demand in writing and mention that you have been asking for payment of Bonus every year, in offcie.............................. and if required lodge issue with o/o Labor Commissioner (State/Central as applicable in case of your establishment)

 

You may refer to:

THE PAYMENT OF BONUS ACT, 1965;

2. Definitions: (13),

8. Eligibility for bonus.

(21) "salary or wage"...............

10. Payment of minimum bonus: Min 8.33%

11. Payment of maximum bonus: Max. 20%

19. Time-limit for payment of bonus.

21. Recovery of bonus due from an employer

22. Reference of disputes under the Act.

39. Application of certain laws not barred.-

 

Every employee who is drawing a salary or wage up to Rs. 10000.00 per month (w.e.f. 1-4-2006 and wages includes a basic salary or wage and dearness allowance but does not include other allowances, overtime salary or wage, house rent allowance, traveling concessions, bonus, employer's contribution to PF, retrenchment compensation, gratuity or commission.) and who has worked for minimum period of 30 days in a year is entitled to be paid bonus.

 

 

 

 >> Increments: If appraisal, increment etc is mentioned in your appointment letter and/or if increments have been paid to other employees you may also demand for it in writing under proper acknowledgment.

 

 The company should have given an increase at least in line with CPI, VDA.......................

The local o/o Labor Commissioner can guide you on notifications and received on increase in CPI with inflation and Min. Wages and your trade might have been included.........................

 

 

>> You can be shifted by establishment that has issued appointment letter/ offer letter to you.

You can ask for shifting allowance, increments etc.................

 

It is in your interest to be member of some trade union, employees union and be properly informed on your rights.

 

 

it shall be appropriate to consult a competent and experienced Labor Consultant/service lawyer.

 

Employee should retain access to a lawyer.

The lawyer that has seen all of your docs and has analyzed your inputs can advice you the best.

 

 In case of dispute employee can approach:

 

 

-Lawyer/law firm: A legal notice can help to drill sense into the heads. You may request your lawyer to include the HR personnel, , CEO, Chairman, MD in list of noticees............

 

Designation alone does not decide employee is covered as ‘Employee’ as in Shops and Commercial Establishments Act, and ‘Workman’ as in ID Act....................

 

Your lawyer may ask you a set of structured questions and may opine that you are covered.

 

 

-Trade Unions/ Employees Unions: They know precise ways to handle such issues

 

 

-Inspector under (Name of your state) Shops and Commercial Establishments Act; 

 

- Inspector under Payment of Wages Act

 

-o/o Labor commissioner

 

- RPFC for PF

 

-ESIC Inspector

 

-Civil Court.

 

 

Do not waste your time for such unscrupulous employers and firm up your next venture as ap.

 

 

 

Vaibhav (Software engineer)     03 January 2014

Hi Sir,
I need your urgent help. I am working as a Software Engineer in Pune for an IT firm & completed almost 3 years. I am working at client site in Pune whereas my Company Located in Bangalore. Before 1 month our client has asked me to go for a certification which was cost around 1.5 Lakhs & the same was paid by client we were 10 people who got certifications. There was no bond & no commitment not even verbal communications before certification by the employer like if we are going for certifications then we can't leave before 1 year or 6 months. even we come to know at the last moment that we will get certifications. After certification i got a good opportunity in a good MNC so i put resign at current company. Now my current employer is saying as I had gone for certification so they can't accept my resignation for 1 year. I told them there was no bond & commitment if this was the condition then they have to told me before. Now they are doing mentally harassment i told them that there was no bond still i am ready to pay them half the cost of certification but they didn't agreed. Now they put a condition on me like I have to Pay full amount of certification as well as i have to serve 3 months of notice period otherwise they will not relieve me. I replied if i have to serve 3 months of notice period then why should i pay. I also told them that i will take a legal action & will go to court they replied if you go for court then it will take around 10 years to resolve the case & my carrier will get ruin. Now i want to know what kind of legal action i can take against them. Can i file a case against them from Pune labor court or should i go to Bangalore labor court as company based in Bangalore.


 

Vaibhav (Software engineer)     03 January 2014

HI,

       It's urgent please give me some suggestion ?


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