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Pragyat Srivastava   23 June 2015

Problems in relieving from the organization

I have been working with a IT organization based in Jaipur, rajasthan.I have recently resigned from the organization and switching to a different as the salary here is very low.I have given them 10 working days notice period, completed my pending tasks and also done hand-over of projects.As the company officially has a 45 working days notice period or payment in lieu of the balance notice period.The accountant has done the calculation and told me the amount I need to pay.

The problem here is they are not accepting cheque and asking for all the amount in cash, and no receipt will be provided for that.Also they have told me that even after paying the amount they have specified in cash, I will still get my relieving letter after 1-2 months.I have also communicated all this to the M.D of the company to bring all this in record, and asked them to deal with the matter as they deem fit and as any professional organization would do.No proper response is received from them also & the H.R is now angry over me communicating with the M.D.As per the accountant no official record of all the transaction will be provided to me and that "I should trust them".What is the best advisable approach to deal with them as this is the first time I am dealing with this kind of a errant employer.Also need a suggestion quickly as after next 2 days is my last working day 



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 4 Replies

Kumar Doab (FIN)     23 June 2015

 

The IT organizations are covered by the Shops and Commercial Establishments Act of the state that was enacted to govern the service conditions of the employees working in such establishments.

The notice period as in the Act is not more than 30 days that too as per length of the service.

The declinature to provide any receipt and to collect in cash hints at that the employer and company is not inclined to show the collection in any record.

 

The accountant is only showing you the calculations and is not providing the certified copy on letterhead under original seal and signature.

 

Moreover as per your designation and nature of duties you might very well be covered by the def. Of ‘Employee’ as in Rajasthan Shops and Commercial Establishments Act and notice period applicable to you may not be more than 30 days.

 

Employee is entitled to get: acknowledgment of notice of resignation/resignation, salary slip of each month and including last month,  acceptance of resignation, correct FnF statement showing computation of earned wages/leave encashment/bonus/

reimbursements/incentives/OT/adjustment of notice pay etc and final amount payable by employee/by company for verification and acceptance by employee, Form16 as per correct FnF statement, Service Certificate, Relieving Letter, NOC/NDC, PF a/c number with a/c slip of each year,ESIC card etc………..

 

Are you a member of any employee's/trade unions? There are many IT/ITeS employees unions now and have affiliated with trade unions.

 

You can approach the unions, Inspector appointed under State Shops and Establishments Act, Payment of Wages Act (within 1 year), O/o Labor Commissioner...., senior Officials in Dept. of Labor, able Labor Law Consultant/service matters lawyer/law firm and proceed further under expert advise of your counsel..

 

Kumar Doab (FIN)     23 June 2015

 

The government has started levying service tax as per the latest  taxation rules.

You may go thru another thread at:

 

https://www.lawyersclubindia.com/experts/Service-tax-on-notice-pay-543006.asp#.VYmEllJ-hkg

 

This might be another reason to avoid accepting notice pay by cheque or showing it in FnF statement. Moreover the Form16 has to be shown as per correct FnF statement.

 

Some states like Kerala has notified Min.Wages for IT sector.

You may check it in your state. Thee employer can not pay less than that.

 

karthik   25 June 2015

I have been working in a company X and got an better offer in company Y, But Y company wants me to join in a month, were X company has 2months notice period, When spoke to Manager in X company they are ready to relive in a month time and the another month i have to pay, But in company X they are telling that they will not give my relieving letter now, Will give only after the other month is completed.Please help me out on this.

Kumar Doab (FIN)     25 June 2015

 

The notice period of 60 days may not necessarily be applicable in your case?

 

 

What is this establishment registered as: Commercial,Industrial?

What is its line of business:IT,ITeS,banking etc?

How many maximum persons are employed in it at any point of time?

Does the company have its Certified standing Orders and is your designation covered by it or Model Standing Orders shall apply to it? Has it displayed the standing orders (certified/Model) at a conspicuous place in company say notice board/near reception/employee’s shared intranet portal?

 

The Redg Office,Corporate Office of the company, and your reporting office was located in which state?

 

What was your designation and nature of duties?

Do you have leave policy, HR policy, Service Rules and Regulations, Conduct and Discipline Rules, FnF policy, Exit policy etc that are mentioned in the appointment letter?

Is it stated in any of the policy that relieving letter shall be issued after 60 days from date of resignation or 30 days from LWD?

 

Was any appointment letter,salary slip of each month,PF number with a/c slips,ESIC card,Form16, FnF statement given to you?

What is the notice period inserted in appointment letter? What is the rate of notice pay inserted in appointment letter @ say Basic/Gross/CTC?

Since how many months you are working with the company?

Have you resigned/submitted notice of resignation? Has any acknowledgment been issued to you? Has the company made the statements e.g. to tender notice pay in lieu of unserved notice period @ say Basic/Gross/CTC?

 

Are you a member of any employee’s/Trade Unions?

What was your monthly salary?

Have you discussed with your able Labor Law Consultant/service matters lawyer/law firm?

Does next employer agree to absorb you on the strength of copy of resignation alone and buy out your notice period in writing without any conditions?


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