Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Naimisha (Manager)     20 February 2014

Non payment of salary during notice period

My husband resigned from the serviced of a certain private sector bank in India three months ago and was not paid salary for his entire notice period. Also, as he submitted his resignation on the 29th of the month (the salary is credited on the last working day of the month, usually being the 30th/31st), he was not paid for a total of 4 months. Now that today is his last day at work, the HR says his final settlement shall get credited in about 45 days. Is this even allowed legally in the country? What is the recourse in such situations?



Learning

 8 Replies

Tarun singh (Tech sales executive)     20 February 2014

HI,

i have a query regarding my company , I am working in this company since aug 2013 to till now, but the atmostphare of the company is something which is very frustrating and managers and others do back b*tching due to which i am not able to give my 100% and performance is going down. now they people say that i have to serve 60 days of notice period which is not mentioned any where, and if i leave the company they say they dont pay to any one, they only pay to the people to who company ask to leave, but managers of that company says now , i have not generated enough dollar amount as may salry is 31k and will not be eligible to get my salary. what should i do in that case if they dont pay my salary please suggest me. just becauase of the salary i m still there in the company , else i would have left the company before in this month. 

Please reply , i am not able to understand what should i do i am in need and getting frustrated and mantally harassed.

HR sent me the offerr letter in the email when i joind the company and its has been deleted by some reason , i have salary slips for last 4 months.

 

 

V. VASUDEVAN (LEGAL COUNSEL)     20 February 2014

This is a wrong practice followed by certain  section of the industry - misnomer over what constitutes a full and final settlement - while a settlement implies retiral dues like provident fund, gratuity, etc., salary has to be disbursed in accordance with the Payment of Wages Act and no employer has a vested right on holding a salary be it for resigning employee or otherwise - even otherwise, a settlement has to be closed within 7 days of the last working day! The employee can escalate this to the higher authorities internally and to the labour authorities - however the employer may cause hurdles in providing relieving letter - which is again an obligatory one under the Shops & Establishments Act.

Vasudevan

Kumar Doab (FIN)     20 February 2014

@ Naimisha,

Fully agreed with Mr. Vasudevan.

The employer can be penalized for delay in non payment of wages.

The employee may approach Inspector under Payment of Wages Act at his location. The penalty may be Rs.7500/instance.

Submit a statement of payables by employer to employee and payables by employee to employee and demand full payment of 1st,2nd month with salary slips at once and 3rd month with salary slip within next 7 days.

Alternatively the HR shall be agreeable to release say 80% of the FNF amounts immediately and rest later.

However the employee has to act. NO one shall come to him on his own.

 

Many of the private bank employees  e.g. Federal bank are members of All India Bank Employees Union. Ask your husband to try and be a member of unions and such a thing shall never happen with him. 

Kumar Doab (FIN)     20 February 2014

@ Tarun Singh,

Appointment letter should also have been supplied to you, after offer letter.

Demand both from good offices of appointing authority, MD in writing under acknowledgment.

Do not resign with immediate effect. Tender some reasonable notice and state that no tasks are pending at your end.

Don’t  remain entangled with HR, Bosses and seek advise from elders in the family, lawyer too.

The notice period shall not depend upon offer letter/appointment letter alone.

If standing orders are applicable (certified/Model) then it shall prevail upon appointment letter/offer letter.

 

If the employer defaults on payment of wages it may default on payment of PF, ESIC, TDS etc  also.

Employee can approach;

 

--- Trade Unions e.g; CITU, AITUC, INTUC ............................

--- Inspector under (Name of your state) Shops and Commercial Establishments Act, If it is commercial establishment.


The employer has to maintain and submit requisite forms and registers according to Shops and Commercial Establishments Act.


If the employer makes false entries it is offence.


--- Inspector under Payment of Wages Act: applicable to all employees drawing wages up to Rs.18000/pm as per def. of wages in the Act. 
You may refer to: Payment of Wages Act; Sec13A and 2: 3*[(i), (ia), 3*[(vi), 3, 4 ,5, 13a, 14, 15, 16, 17A, 20………….. and if the Inspector agrees to cover you may immediately submit Form’N’ for recovery of wages.


--- O/o Labor Commissioner

--- ESIC Inspector; 

--- RPFC in nearest PF office


--- ITO; TDS where you file your ITR


--- CIT-TDS (jurisdictional) where company files ITR


---Controlling Authority of Gratuity

---Civil Court

 

 

 

 

 

Kumar Doab (FIN)     26 February 2014

Did you resign by submitting resignation letter or company issued notice of termination?

 

Did you work during notice of resignation or notice of termination?

Jaisriram123 (Maths teacher)     26 February 2014

Company issued notice of termination,

I accepted to resign on 4th of Jan -14, i sent my resignation mail on same day.

there is no work allotted during the notice of resignation.

Kumar Doab (FIN)     26 February 2014

If company has issued notice of termination then until or unless it has advised on record preferably in writing to stop working/attending to office then you need to work during notice period.

If you have been relieved in the mid of notice period then you may demand notice pay for 30 days, from good offices of appointing authority, MD along with salary slip of last month and all months of employment, correct FNF statement (that should show reason of separation: resignation/termination), service certificate, relieving letter, form 16 as per correct FNF statement, NOC/NDC……..PF a/c slips of whole tenure of employment, ESIC Card etc and ask to supply by redg. Post only.

Depending upon the reply/ no reply you can approach appropriate forum(s) as mentioned above, as per your eligibility.

 

 

   

sameer   19 January 2016

May be employer will be right

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register