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Nilesh (Share Market Trader(Individual))     17 April 2013

Problem in fnf and pf closure by perivious company

Dear Sir/Madam,

 

I had resigned before 7 months with 20days notice period. As per contract notice period was 3 months. Company was accepted my resignation and relived me as per my request.

Company has approved FnF by cutting two months gross salary which huge amount

In case of PF closure, company has not yet been approached to EPF department.

As per appointment letter, term & conditions are given below in case of FnF clearance.

Termination:

a)      After completion of 3 years of your service with us your appointment contract can be terminated by giving 3 months notice on either side

b)      You services will be terminated by the company without any notice or payment in lieu of notice in case of misconduct, disobedience, insubordination or divulging any secrets of the firm, misappropriation or fraud or other misconduct, neglect of duties assigned to you.

c)       Your services will be terminated by the company without any notice or payment in lieu in case you breach company policies & procedures

 

I would like to ask three major questions.

1.       Based on above terms & conditions mentioned in appointment letter, whether they can cut gross salary from FnF.
a) Any action can be taken against organization from my side.
b) To whom I can approach legally

2.       Company not yet been processed for PF closure whereas we have already submitted forms 4 months before. What should be done from our side we have already asked thru mails to the company

3.       Company has transferred me in Presales department in the month of November, 2010 but given transfer w.e.f. 01-Apr-2011. The same letter handed over to me in 2012-12 in month February. Performance incentive was declared for the year 2010-11. Later, performance incentive was not declared or given for the period of 2011-12, At least I should get 5000/- for the year 2011-12. But that is not mentioned in FnF and given to me as I discussed with HR.

 

Still I am following up for PF closure and FnF but I haven’t received it.

Please guide.

Thanks & Regards.



Learning

 6 Replies

Nilesh (Share Market Trader(Individual))     17 April 2013

I have not yet received FnF amount. The said FnF is only approved and declared in my original topic. I had resigned in the month of June, 2012 (for your information)

Kumar Doab (FIN)     18 April 2013

 

You are at which location/state?

HO/redg. office of the company is in which state and what is it: an industrial or commercial establishment?

Notice period is stated in Standing Orders of the Company, Appointment letter, Shops and Commercial Establishments Act of the state…………..

If standing orders are applicable to your company and your designation then notice period stated in standing orders shall prevail upon appointment letter. If it is 1 month in standing orders it shall be 1 month.

If your establishment is commercial establishment and covered you may look into Shops and Commercial Establishments Act of the state which may be available at Dept. of labor website…………..

The 3 months notice period is obviously for the benefit of employer.

The notice pay should be ideally @ Basic + DA as employer shall encash paid leave, disburse Gratuity , OT, Bonus at this rate…………

Has the company supplied you PF number, PF a/c slips/pass book for entire period of service?

Do you have acknowledgment of PF forms submitted by you to company and its POD?

The company should submit PF forms to concerned PF office within 5 days and supply acknowledgment issued by PF office to employee.

You may write a letter under acknowledgment, enclose the POD, receipt to o/o MD of your company and demand that acknowledgment issued by PF office be supplied to you by redg. post only.

Failure to attest PF office and its submission to PF office is offence. You can lodge a complaint with APFC/RPFC. It shall be better to meet these officials with written complaint and copies of POD and letters to company and request them to penalize the company and depute the PF officials to get the forms attested. Obtain acknowledgment of the complaint.

For incentives submit a written letter with eligibility, performance details and demand payment.

It is one of the duties of Inspector under Shops and Commercial Establishments Act to ensure that the final wages of the separated employee are paid on time.

The time for payment of FNF dues is usual pay day.

If your wages as per definition of wages in Payment of Wages Act were up to Rs.18000/pm you can lodge a complaint with Inspector.

You can also approach a lawyer and legal notice form your lawyer may wake up the company personnel and they may work with great speed to clear the things.

 

Sudhir Kumar, Advocate (Advocate)     21 April 2013

non-processing of PF claim is criminal offence and no agtreement can come to the rescue fo offencdedr.  Subm it written complaint to the RPFC.

Nilesh (Share Market Trader(Individual))     21 April 2013

Thanks Kumar or considering all points and asking some valuable points... Please find the reply and requested to clear points MARKED IN red

 

You are at which location/state?

Maharashtra

 

HO/redg. office of the company is in which state and what is it: an industrial or commercial establishment?

--Its in Mumbai and in IT services (where I can find this either commercial or industrial)

 

Notice period is stated in Standing Orders of the Company, Appointment letter, Shops and Commercial Establishments Act of the state…………..

--In Appointment letter, Maharashtra, (what is mean by standing orders)

 

If standing orders are applicable to your company and your designation then notice period stated in standing orders shall prevail upon appointment letter. If it is 1 month in standing orders it shall be 1 month.

--At the time of joining it was 1 months, but after completing 3 years this made 3 months. (Its given in my ORGINAL TOPIC, MENTIONED POINTS (TERMINATION))

 

If your establishment is commercial establishment and covered you may look into Shops and Commercial Establishments Act of the state which may be available at Dept. of labor website…………..

The 3 months notice period is obviously for the benefit of employer.

--no comment (couldn’t get)

 

The notice pay should be ideally @ Basic + DA as employer shall encash paid leave, disburse Gratuity , OT, Bonus at this rate…………

--They have deducted on gross salary. What can I demand or legally do in this case

 

Has the company supplied you PF number, PF a/c slips/pass book for entire period of service?

--Yes PF number is given, during service they have not given salary slips even by demanding orally. Later on 2-3 months of salary slips I have collected.

 

 

Do you have acknowledgment of PF forms submitted by you to company and its POD?

--No, forgot to take aclnowledgment

 

 

The company should submit PF forms to concerned PF office within 5 days and supply acknowledgment issued by PF office to employee.

--No not yet submitted in PF office since last 6 months

 

 

You may write a letter under acknowledgment, enclose the POD, receipt to o/o MD of your company and demand that acknowledgment issued by PF office be supplied to you by redg. post only.

--which POD, Ok, Thanks I will send a redg. Letter to office to CEO of my company

 

Failure to attest PF office and its submission to PF office is offence. You can lodge a complaint with APFC/RPFC. It shall be better to meet these officials with written complaint and copies of POD and letters to company and request them to penalize the company and depute the PF officials to get the forms attested. Obtain acknowledgment of the complaint.

--But we don’t have any acknowledgment taken that we have filled up forms and given to company.. Can we still lodge complaint??.. because we have already given to them but not processed by company

 

For incentives submit a written letter with eligibility, performance details and demand payment.

--eligibiity means that was defined by organization, we have only transfer letter by with Sr. Exec Support engineer to Network specialist…
-- during this period how we can ask performance letter- should we write a letter asking performance appraisal or any details… how we this will have accountability?

 

It is one of the duties of Inspector under Shops and Commercial Establishments Act to ensure that the final wages of the separated employee are paid on time.

 

 

The time for payment of FNF dues is usual pay day.

--what we should do, not yet paid

 

If your wages as per definition of wages in Payment of Wages Act were up to Rs.18000/pm you can lodge a complaint with Inspector.

--It was upto 27000pm. What should we do?

 

You can also approach a lawyer and legal notice form your lawyer may wake up the company personnel and they may work with great speed to clear the things.

--based on above and ORIGINAL TOPIC, can we goahead legally + for demanding performance incentives which was not declared and paid for one year.

Nilesh (Share Market Trader(Individual))     09 May 2013

Hi Kumar,

Waiting for your response....

Kumar Doab (FIN)     09 May 2013

 

--------Maharashtra is probably one of the states which have granted blanket exemption to IT/ITeS companies from the provisions of IESO Act (Industrial Employment Standing Orders Act) as per IT policy of the state.

However Bombay Shops and Establishments Act (referred as SE Act in this thread) is so employee friendly that it can cover your issues.

 

Your company must have displayed its registration certificate near entrance, on Notice Board.

 

Standing orders of the company frame service conditions which can not be negated to employee in appointment letter. The service conditions as stated in standing orders shall prevail upon appointment letter. Notice period is part of service conditions.

 

The company would claim that 3 motnh’s notice period was accepted by you however this long notice period is obviously for the benefit of employer and may be claimed as void as per the clauses in SE Act.

 

However another state like Karnataka has ended the blanket exemption and all companies were to submit draft standing orders within Dec,12 for certification by Mar,13.

Trade unions in Maharashtra are active.

 

You may go thru the attachment, and get in touch with the union for IT employees and fellow employees and also the trade unions in your state for similar enforcement of standing orders in your state.

 

 

-------At what rate the company has encashed paid leave, disbursed OT, Bonus etc in FNF or it disburses Gross/Basic ?

You may check and revert to company, and raise your specific demands.

 

 

--------Salary Slip: As per Payment of Wages Act the salary slip should be supplied/signed by employee and record should be maintained for 3 years.

 

 

PF: If you have the proof of dispatch/delivery you may write to company claiming PF forms have been submitted and acknowledgment issued by PF office be supplied to you by redg. post only. Thereafter you can also lodge complaint (under acknowledgment) with direct with concerned PF office or thru any PF office nearest to you that company has not attested the PF forms and PF office should depute its personnel to get your forms attested and penalize the company.

 

You may meet the RPFC in person. You can also submit PF withdrawal forms attested by any of the designated authority including BM of your bank to PF office.

For details log on to:

 

www.epfindia.gov.in

 

 

-------If incentive was declared and employee qualified for it company is under contractual obligation to pay.

 

 

 

If you wish to avail the services of LCI lawyer you can conduct search at:

 

 

Related Lawyer’s list is provided by LCI at the bottom of this web page.

 

Your near and dear ones can also guide you to a lawyer.

 

You may show all of your docs, give inputs in person, to a c competent and experienced labor consultant/service lawyer, for analysis of merits and you may proceed under the expert advice of your lawyer.

Let your lawyer’s opinion be final on all points discussed in this thread.

 

 

 

---------SE Act Bombay:

 

38. Application and amendment of the Payment of Wages Act. (l) Notwithstanding anything contained in the Payment of Wages

Act,  1936, (V  ?f

1936)………. the Inspector appointed under this Act shall be deemed to be the Inspector…herein referred to as "the said Act",…….for the purpose of the enforcement of hei provisions of the said Act within the local limits of his jurisdiction.

( Implies that the Inspector under SE Act shall be the Wages Inspector )

[?8 ?. Application of Act VIII of 1923 to employees of establishment.-The provisions of the Workmen's Compensation Act,  1923  (VIII  of  1923),  and the rules  made from time to time thereunder, shall,  mutatis mutandis,  apply to employees  of  an establishment to  which this Act applies, as if they were workmen within t! meaning of the Workmen's Compensation Act, 1923.

( Implies any employee under SE Act shall be eligible as if he is a workman and can invoke WC Act)

^[??-?.  Application of Industrial Employment (Standing Orders) Act to establishments.-The  provisions of the Industrial Employment (Standing Orders) Act,  1946,  in its application to the State of Maharashtra [(hereinafter in this section referred to as "the said Act"), and the rules and standing orders (including model standing orders) made thereunder from time to time, shall,  mutatis rnuimdis,  apply to  all establishments wherein fifty or more employees are employed and to which this Act applies, as if they were industrial establishment within the meaning of the said Act.

(Implies if company is under SE Act and if it has not framed its standing orders the model standing orders shall apply to all employees. Model Standing Orders are attached. You can also download from Dept. of Labor Maharashtra/Bombay website also. Thus while you can approach Inspector under SE Act you should also be eligible to approach Labor Inspector/ALC.)

{ Model Standing Orders: 3.               Tickets,  11.         Payment of wages,  13.       Termination of employment,  15.      Complaints, 17.  Liability of 17[employer].--, 18.          Exhibition of standing orders.-)

51.    Employer [and manager  to produce registers, records etc.  for inspection.

( Implies that if you lodge a complaint the Inspector can not check all records, your personnel file but can take these to his office. You may obtain certified copies and even peruse RTI route.)

Moreover the Inspector is under obligation report every two months as given in Sec.66

55.    False entries by employer and manager.

58.    Determination of employer for the purpose of this  Act.

66.Notice    of termination of service; is 1 month as per the Act.

 

---------You may go thru: Payment of Wages Act: 2.Definition: 3*[(vi) "wages" means………., (c), 13A

 

-----------If gratuity is mentioned in CTC you may succeed to claim Gratuity even if you have not worked for 5 years. There are many threads on PF and Gratuity at LCI.

e.g.;

 

https://www.lawyersclubindia.com/forum/display.asp?cat_id=9&forum_id=49#.UYs7UaKAqWM

 

https://www.lawyersclubindia.com/forum/Pf-withdrawal-without-signature-of-employer-80022.asp

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Attached File : 296898441 the bombay shops establishments act.pdf, 296898441 se act bombay duties of inspectors.doc, 296898441 payment of wages act 1936.pdf downloaded: 217 times

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