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Rounak Hasan (Software Engineer)     11 August 2012

Not getting pending salary and pf clearance

Previously I was working for a reputed MNC, a Private LTD. with a good percentage of shares hold by Central Gov. of India. I have resigned there in Oct,2011 and got released after completing the whole notice period on Dec,2011. It is already 8 months over but still I am not getting my pending salary, food coupons and PF clearance. Normally it takes maximum two months after release. Without final settlement I am unable to withdraw my PF and also unable to submit my IT return because I am not getting last form 16. I have contacted the HR personal may times, also mailed the HR head but still not getting any conformation about when I will get my money. Is there any way to take any legal action against this? Please suggest.



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 12 Replies

nijhum seal (junior lawyer)     11 August 2012

you have 2 way of remedy. first of all you can submit an application or complain in the RTI (Right To Information) in the companies RTI or to any RTI tribunal. The second one is directed to sue in the labour tribunal according to the labour and industrial tribunal act.

JANAK RAJ VATSA (ADVOCATE)     11 August 2012

send a legal notice to the company demanding the full and final settlement within 15 days. if they fail, or respond, then file a case in the labour court demanding your dues alongwith penal interest.

Kumar Doab (FIN)     15 August 2012

Did you sign any service agreement/bond? Has the company issued and supplied acknowledgment of notice/resignation, acceptance of resignation, FNF statement, reliving letter/service certificate/work experience certificate, PF number/account slips, NOC/NDC, acknowledgment of company property/having handed over the charge, last salary slip etc?

Does the company have its own PF trust? Do you have the PF rules of the company and various forms prescribed by the company for PF withdrawal/transfer?

PF can not be attached. What is the reason quoted by company for not processing your request for PF?

You may either submit the PF forms with your covering letter for withdrawal/transfer to company by redg/speed post under acknowledgment and follow up by email mentioning that your PF forms have been supplied to company and attach internet generated POD. You may enclose a postage prepaid { as purchased from PO} self addressed envelope and mention in covering letter that same is enclosed for supplying you the acknowledgment issued by EPFO by redg post. Company is duty bound to submit the PF forms to EPFO within 5 days and supply you the acknowledgment issued by EPFO.

You may also obtain POD from PO {letter signed by sub post master and internet generated delivery report free of any charge} and certified copy of run sheet of post man by paying a fee of Rs.10/.

If the company does not submit your PF forms you can lodge a complaint with RPFC mentioning that company is not attesting PF forms and RPFC is under obligation to take action and reply to you.

You can  submit another set of forms attested by BM of your bank to RPFC with your covering letter and request to supply you the acknowledgment, and payment.

In a given situation employee can invoke the Industrial Employment standing orders Act, Payment of Wages Act, SE Act, and ID Act as per explanation of employee under these Enactments or approach civil court.

Companies burn extra energy to convince employee that he/she is not a workman as many of the enactments favor employee and limit the choice to employer. However designation alone does not decide employee is a workman or not.

Industrial Employment (Standing Orders) Act, 1946

 

SCHEDULE IB : Model Standing Orders on Additional items Applicable to all Industries

1. Service record

Matters relating to service card, token tickets, certification of service, change of residential address of workers and record of age.

(ii) Certification of service : (a) Every workman shall be entitled to a service certificate, specifying the nature of work (designation) and the period of employment (indicating the days, months, years) at the time of discharge, termination, retirement or resignation from service;

 

Delhi Govt. Labor website:

Industrial Employment (Standing Orders) Act, 1946

 

 

16.

Certificate on termination of service.-

 

Every permanent workman shall be entitled to a service certificate atthe time of his dismissal, discharge or retirement from service.

 

 

17.

Liability of 1[employer].-

 

The 1[employer]of the establishment shall personally be held responsible for theproper and faithful observance of the standing orders.

 

 

20.

Service certificate.-

 

Everyworkman who was employed continuously for a period of more than threemonths shall be entitled to a service certificate at the time of hisleaving the service of employer.

 

 

22.

Exhibition and supply of standing orders.-

 

Acopy of these orders in English and in the regional languages of thelocal area in which the mine is situated shall be posted at themanager's office and in such other places of the mine as the employermay decide and it shall be kept in a legible condition. A copy of thestanding orders shall be supplied to a workman on application, onpayment of a reasonable price. A trade union in the establishment will,however, be entitled to the free supply of a copy of the standingorders, provided the union is one which is recognised by the employer.

 

Form 16: You may lodge a complaint with CIT-TDS of your locality and jurisdictional CIT-TDS where your company files the return.

Rounak Hasan (Software Engineer)     16 August 2012

I have sent a mail directly to the hr head of the comapany. He has instructed the regional HR to take care this matter seriously. By the way I want to what is the process for RTI that you have mentioned in your reply?

Rounak Hasan (Software Engineer)     16 August 2012

No, I didn't have any service agreement with the company. I have got my resignation acceptance letter, experience certificate at time of releasing. But they are just unnecessary delaying to complete the final process. I would get some money for leave encashment & pending food coupon. Company has its own trust for PF and I have my final pf statement. But they are not accepting my pf withdrawal form as the final settlement has not completed yet.

Kumar Doab (FIN)     16 August 2012

The conduct of the company is perturbing.

PF has nothing to do with final settlement. As per enactments mentioned above company should settle the wages on last day in office or within next 2 days.

8 months delay is justifiable at all. You may demand interest and damages. Let your lawyer issue a legal notice or you may approach the labor authoritative at your location.

You may issue notice to concerned and offending HR personnel by name. The act of company may be treated as criminal breach of trust and you can charge them by name. Let them run to your location and stand in corridors and sit on bench.

 

1 Like

Rounak Hasan (Software Engineer)     17 August 2012

Thanks a lot. The name of the company in CMC LTD. it is a large MNC previously governed by central government and now a TATA group of company from 2001. I just fear that if a take any legal action against such a large body can adversely affect my career.

          And what do mean by labor authoritative. Is it some govt. body, can it act against some PVT Ltd. company             

Kumar Doab (FIN)     17 August 2012

In a given situation employee can invoke the Industrial Employment standing orders Act, Payment of Wages Act, SE Act, and ID Act as per explanation of employee under these Enactments or approach civil court. The authorities are as described in these enactments.The authorities can act against govt or private employers both, upon complaint of the employee.

Companies burn extra energy to convince employee that he/she is not a workman as many of the enactments favor employee and limit the choice to employer. However designation alone does not decide employee is a workman or not.

You may try by writing under acknowledgment to good offices of your appointing authority, MD, Chairman, Company Sceretary narrating all representations made so far and facts of your comaplint.

Sudhir Kumar, Advocate (Advocate)     20 August 2012

I beluieve that non=furnishing of Form 16 is offence under IT regulations.  Please check from IT authroities if they have even submitted F/24.

Sudhir Kumar, Advocate (Advocate)     20 August 2012

Further what is meant by PF clearance.  Release of PF is not subject to any clearance as it is not subject to any attachment/mortgage or withohold.

 

If you have joined any other copmpany you can get the PF transferred to new account and your previous employer has no role in this.

Anita (HRO)     05 March 2013

is there is any Act against organization or time period for all pending salary and other benefits like PF,Notice period,EL,CL etc

Kumar Doab (FIN)     05 March 2013

-PF:

Employer should attest and submit the forms to concerned o/o PF Commissioner within 5 days.

-pending salary and other benefits like Notice period, EL,CL etc: Usual Pay day.


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