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Dhanasekar (associate)     30 September 2014

Overpaid

I have been working in an organization in chennai(India) currrently for 4 years now. In 2012 my salary was revised from Rs.14,000 to Rs.26,000. My payslip and revision letter is showing the revised salary correctly as 26000. But now in 2014 after 2 years, my employer is saying that i was overpayed rs.10000 extra for 2 years and demanding me to pay 2 lakh. 

 

1. Since my pay slip and revision letter is showing 26000. i feel that i should not pay them 2 lakh.

 

2. Please clarify is it possible for me to defend my case in court ?

 

3. If not then should i have to pay them full amount or partial amount ?

 

4. Since the mistake is on employer, will the court accept my pay slip and salary revision letter as a proof ? 



Learning

 3 Replies

Kumar Doab (FIN)     30 September 2014

Generically speaking: the disbursement of wages is as per revision of wages, hence now employer can’t demand recovery.

 

Are you still in employment or you have separated?

Is the matter in court?

The employer has demanded refund of wages in verbal or in writing?

Did you sign the salary revision letter and return the signed copy?

 

What is this establishment; Commercial, Industrial, Small Enterprise?

What is its line of business: e.g.: IT, Banking, etc?

 

 

How many people are employed in it?

 

Does the company have its certified standing orders?

 

 

The Redg. office of the company and reporting office of the employee is located in which state?

Employee was located in which state?

 

If the case is filed then it is in court at which location: location of Redg. office of the company, location of employee, or location of jurisdictional courts as stated in appointment letter?

 

 

What was employee’s designation and nature of duties and how many persons were reporting to employee?

 

Did  employee have any power to sanction leave, pass increment, conduct appraisal, recruit/appoint/terminate?

 

Who has signed the appointment letter, and salary revision letter?

 

Has the company stated in appointment letter that service conditions shall be governed by HR policy/service rules and regulations/standing orders/conduct and discipline rules and do you have copy of these.

 

 

Reply point wise to each point.

Dhanasekar (associate)     01 October 2014

Sir/madam,
 
I have answered the following questions. Please see the below answers and let me know how to proceed ?
 
 
Thanks,
Dhanasekar.S
 

On Tue, Sep 30, 2014 at 12:28 PM, Lawyersclubindia Forum <donotreply@lawyersclubindia.com> wrote:

In Order to stop receiving further update for below thread click here.

A new reply has been added to "Overpaid" thread at lawyersclubindia.com

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Generically speaking: the disbursement of wages is as per revision of wages, hence now employer can’t demand recovery.

 

Are you still in employment or you have separated? I am still in employment.

Is the matter in court? No

 

 

 

The employer has demanded refund of wages in verbal or in writing? Verbal

 

 

Did you sign the salary revision letter and return the signed copy? No

 

What is this establishment; Commercial, Industrial, Small Enterprise? Outsourcing commercial company

What is its line of business: e.g.: IT, Banking, etc?

 Telecommunication

 

How many people are employed in it?

 500-1000

Does the company have its certified standing orders?

 Not sure about that.

 

The Redg. office of the company and reporting office of the employee is located in which state?

Employee was located in which state?

Regd head office in Mumbai. I am located in chennai

 


If the case is filed then it is in court at which location: location of Redg. office of the company, location of employee, or location of jurisdictional courts as stated in appointment letter?

 No case filed yet.

 

What was employee’s designation and nature of duties and how many persons were reporting to employee?

 I am a associate and my nature of duty is to process data center orders and no person is reporting to me.

 

Did  employee have any power to sanction leave, pass increment, conduct appraisal, recruit/appoint/terminate?

 No

 

Who has signed the appointment letter, and salary revision letter?

  HR, Head and manager staffing

 

Has the company stated in appointment letter that service conditions shall be governed by HR policy/service rules and regulations/standing orders/conduct and discipline rules and do you have copy of these.

 No. There was no were written anything in my appointment letter saying( service conditions shall be governed by HR policy/service rules and regulations/standing orders/conduct and discipline rules and do you have copy of these)

Kumar Doab (FIN)     01 October 2014

 

All posts are first hand feeling on matter posted by you and are not a legal opinion.

You should consult an able labor law consultant/service matters lawyer in person with all of your employment related docs, in person and proceed under expert advice of your lawyer. The lawyer that has examined the docs on record and your inputs in person can advice you the best.

Let all of your communications be now drafted and structured by your lawyer.

Has the company deducted PF,ESIC, Group Insurance on new wages after increment and deposited the same, too?

Has the company stated even if verbally that if you do not refund the amounts being demanded from you what actions it shall take e.g. termination, leveling some charge etc?

If company has overpaid by oversight then it could deduct from payouts on its own………………. that it has not done…………………….rather it is resorting to unethical, unfair practice of coercing and intimidating in office.

The increment awarded can not be reversed………………..hence you are being asked to refund verbally to transfer the onus on you.

Apparently there is no mistake on your part.

It is felt that you may not refund the amounts being asked from you by verbal orders………………………and should affirm verbally that you are being paid as per salary increment letter issued to you………………

Verbal transactions are not on record and are difficult to prove…………….hence you should record the calls/meetings (audio/visual)………………….and keep some witness.

 

Your lawyer may opine to minute the discussions if required………………………………….(therefore maintain record of meetings/discussion) and to attach the scanned copies of salary increment letter issued to you……………………………..signed copies of appraisal conducted to award the increment………………………..and to submit the copy of increment letter signed/accepted by you to good offices of appointing authority/MD/authority that has signed the increment letter.

 

Since a dispute seems to be precipitating you may take a call on firming up your next venture.

You have posted that the Redg. office of the company is in Mumbai (Maharashtra).

 As per Bombay Shops and Commercial Establishments Act;Sec38-B:::: if no. of employees are=>50 standing orders shall apply……………….if standing orders are not certified Model Standing Orders shall apply………………(Until or unless your company/trade is exempted by the state govt………………….and you alone have to verify it.)

The DLC in o/o Labor Commissioner is usually certifying officer (CO)  and this authority at location of Redg. Office of the company can provide the certified copy of standing orders against a nominal charge of say Rs3/page……………………………..alternatively the concerned HR personnel can also provide it.

Employer should display standing orders at a conspicuous place in office (Chennai in your case) and should also supply the certified/authenticated copy against a nominal charge say Rs.10/-----

The company might have placed standing orders/HR policy/service rules and regulations/appraisal policy/increment policy etc……………. at some shared portal e.g. HR portal………………………you may download the same………………………………..or demand it from concerned/designated HR personnel that is custodian of such policy.

You may go thru Model Standing Orders: Sec13-18.

Your lawyer may opine after looking into your designation and nature of duties that you shall be covered as ‘Workman’ as in ID Act, ‘Employee’ as in Tamilnadu Shops and Commercial Establishments Act…………………….. and hence shall be protected as per provisions of these enactments………………….and that if required you can:

 

 --Lodge complaint with Inspector under Payment of wages Act if your wages are upto Rs.18000/pm as per def. of wages in this Act…………

 

Salary slip has to be issued at least a day before disbursement of wages and should be signed by employer and employee; Sec13A………


--Lodge complaint with Inspector under Tamilnadu Shops and Commercial Establishments Act

 


One of the jobs of the Inspector is to ensure that correct wages of employee are paid in time.

--Lodge complaint with O/O Labor Commissioner.

 

--approach civil courts if reqd.

---lodge criminal  complaint under u/s 406,420......................

 


--approach employee's unions/Work’s committee/grievance redressal committee within company, trade unions and unions in Tamilnadu and Maharashtra have been strong................

 

 

 

 

 


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