GJ19650527 (Self) 22 March 2011

Notice pay

have served the organization for 2 years 15 days as zonal manager (senior-middle management)
resigned on 1st Oct'10 and intimated in writing (hard copy) of the intention to serve 90 days notice period as " .....please accept this resignation letter as a formal notice......... as per my contract, I will be happy to continue to work during my notice period until 31st Dec 2010.......".
received a letter from the HR on 4th Oct'10 in writing (hard copy) as follows " .....refer to your resignation letter dated ------- and accept the same with regret from the close of business hours of 31st Dec 2010.......".
thus officiated entire oct'10, Nov'10.
On 30th Nov, i was asked to handover all official charges which i had kept ready. I satisfactorily handed over charge and all office property that enabled me to officiate including laptop, car etc. and it was implied that i need not come from next day. So I handed over at 5.30 pm and left for the day. From next day I did not go to the office.
On the same day (30th Nov'10) I wrote an email (have not sent the hard copy) at 10 am to the concerned authority from my official email id as follows: " I have been given to understand.........that I need to hand over the ................today (30th Nov'10). Since my last working day ............is 31st Dec'10, I understood that the above handing over of office property would be done on that day and after completion of my serving the notice period. I seek your guidance on the above as I am willing to serve the balance 31 days left of notice period..............". No reply to my e-mail reached me before close of working hours of that day or till today. my official id was blocked, i forwarded the same mail on 2nd Dec'10 from my personal ID). No reply.
payment of salary to me during this period was as follows - oct'10 - full salary with all allowances received. nov'10 - only BASIC pay was received, although I served entire 30 days of nov'10. dec'10 - the company did not pay any salary saying I did not attend office.
there is a big monetary diffrence between the amount due to me as per notice pay (including leave encashment, LTA, Medical etc.,) and what the company intends to disburse.
They have chosen to exclude paying the allownaces for Nov'10, full pay of Dec'10 (although I was intending to serve the full term of notice pay), leave encashment of a little more than one month's salary, LTA and Medical (equivalent to 2 months salary) and miscellaneous allowances.
the appointment letter read as follows - " ...........termination of services can be, without necessarily assigning any reason, by three months notice in writing on either side. the company will have the right to terminate the services by payment of three months basic salary only and no other allowances or perquisites in lieu of notice...................."
Please advice me on the following -

can i be denied the full pay for nov'10 inspite of attending office full time?
how can I be denied Dec full pay when I intended to serve the balance 31 days left of my notice period?
how can I be denied my dues of leave encashment, LTA and Medical allowance as per my service contract.
please guide/assist me in redressal of the above case.
what is the scope of merits of the case in my favor?

Regards.

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8 Replies

GJ19650527 (Self) 22 March 2011

Dear Lawyer Friends,

Will someone help me out with this situation ASAP. Intend to close the issue with my employer before 31st March'11.

Regards

Vikas (Legal Associate Foreign Direct Investment) 25 March 2011

Just file the issue before labour commissioner if you can justify that the Company is doing wrong to you inspite of you being fulfiling all your contractual obligations.

GJ19650527 (Self) 25 March 2011

I do not think I am under the perview of the Labor Commissioner Office owing to my status being not of a workman and resolution of disputes under ID act.

Vikas (Legal Associate Foreign Direct Investment) 25 March 2011

You have signed an employement contract? right

GJ19650527 (Self) 25 March 2011

I havereceived am appointment letter spelling out the terms and I have acknowledged received that, if you call that document a contract then yes.

Vikas (Legal Associate Foreign Direct Investment) 25 March 2011

can you e-mail your phone number on adv.vksrivastava@gmail.com. If you like I can call u and discuss the issue.

Regards,

Vikas

Avinash Kumar Sharma (Sr. Manager HR) 28 March 2011

Dear Sir,

As you have mentioned you served for full month in the November so you are fully entitled for full salary in the month of November. Your company have relelieved you one month before your notice period completion so you are entitled for one months basic salary for December month. You are fully entitled for leave encashment , LTA and other benefits upto November. But you can not seek redressal before Labour Commissioner because u served on a position which do not covered under definition of "worker". So you can seek remedy in a civil court of the area. Please discuss this matter in detail with some service lawyer and proceed forward. You have good case to succeed.

Thanks,

Avinash

Kumar Doab (FIN) 17 April 2011

The learned experts/members have given their valuable opinion.

1.As per the appointment letter/or contract of employment, you have mentioned :

"the company will have the right to terminate the services by payment of three months basic salary only and no other allowances or perquisites in lieu of notice...................."

2.The company has accepted in writing ,your notice of resignation, and the effective date of resignation as 31st Dec,2010.

3. However by a verbal communication, (well thought strategy) you were asked to submit company property, on 30th Nov,2010, to which you complied, and satisfactorily handed over charge and all office property.Hope you have cleared all accounts e.g. promotional budget expenses,CRM accounts as well.

Company has setteled your accounts, after the compny property was submitted by you.

You sent an email from your official id. Company is owner of this email id and the administrator can open it and generate printouts.This email was sent to the concerned authority and if he/she is still in service, can generate a printout.if not administrator can open it and generate printouts.

You have sent another email from your personal email id.However both have not been replied.

4.You have not on your own sent any comunication to the company to relieve you before the date of 31st Dec,2010.You have wisely written that you are willing to serve till 31st Dec,2010.

The notice period is given or asked to be given to complete the assignments in progress, finish the tasks on hands, and find the replacement so that work/business is not affected and loss is not caused.

You have complied to the spirit of the purpose.

Company must have arranged your replacement.You can find it out from your resources.

As per the expression of terms, in your appointment letter, and its interpretation,company is liable to pay you everything upto 30th Nov,2010 and basic salary for Dec,2010 .

However since you have been left unsatisfied, you are well within the rights to escalate the matter to your appointing authority, MD, Chairman, Head- HR,Company Secretary and seek the help from their good office to reply to you by registered post/speed post say within 15 days.

You should obtain F&F,form 16, PF accumulation reports,work experience certificate, releiving letter, NDC,NOC etc.

If your grievances are not addressed properly you can initiate the process of law , and thus issue legal notice,approach courts of law.

It is learnt,:

-In case of Mr. Kishore Galgale (GM) whose services were terminated by Morepen Laboratories, his 2 MR's deposed before Indore High court and stated that GM was working with them in field and meeting doctors like them.Mr Galgale lawyer had prepared his case in a manner that the designation was GM, however by virtue of his duties he was entitld to invoke IDA.Unfortunately Mr. Galagale expired , before his case was decided.

-In case of Area Manager(1st line manager) with a large MNC health care company, whose service were terminated, he invoked IDA and later was reinstated with full back wages. He got all benefits as expreseed in his salary slip/appointment letter, and PF contribution for the entire period.

It shall be appropriate to show all the records to your service lawyer/law firm, and proceed accordingly. Your lawyer/law firm may advise you to claim full salary for Dec,2010.