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Richard alvin (Digital Marketier)     26 December 2012

Pvt ltd company not following any employee welfare practices

Dear Expert,

 

I recently joined a startUp IT company (Feb 15th 2012). I met the CEO of the company while I was with my previous employer and happen to receive an offer. Later, after joining the company, I saw many a Employee Welfare practices, not even the basics, are not followed. I request an expert opinion about employee rights to help myself and my fellow employees.

 

1) I was promised the role of an Analyst though an offer mail through e-mail. As the company is a startup, I didn't negotiate much for the package, but asked for more leaves for the year, as I woul be having my marriage. he agreed for it through mail. However, on the event of marriage, they provided CL, then 1 week's sponsered leave and then they charged LOP on it.

 

2) Its been a year, and I'm yet to receive the hard copy of offer letter, HR letter and appointment letter. The only document I have is the e-mail i got as an offer

3) There is no ID card issued till date (not even a temporary one)

4) There is no fixed HR policies available for our review, except for a short mail I received recently.

5) Recently, I had to apply for a loan, ad was in need of a local ID proof. I requested an H.R letter from office which arrived pretty late that I was not able to use it. When I complained about the mishap, the CEO ordered to cancel the H.R letter received instead of consulting the concerned dept.

6) The COO of this company (Jugul@r S0ci@l Medi@), who is drawing a handsome salary, is wife of the CEO, and is a Business Analyst in another company called 0scimum Bi0tech S0luti0n.

7) There is 12 CL and 6 SL annually

8) Though the timing of the office is from 10 a.m - 7 a.m. we are made to sit till 9. (also, alternate saturdays are working)

9) My travel and other claims are yet to be paid

10) Salary at times come at 15th of the month

Please let me know, which all we have to bear with, and which all can be leagally demanded.

 

Thanks and regards,

Richard



 2 Replies

Richard alvin (Digital Marketier)     26 December 2012

I would like to take things forward legally, though wants to know the scope of it before doing so

Kumar Doab (FIN)     26 December 2012

IT companies are covered under SE Act.

State of Karnataka has ended the blanket exemption granted to IT companies from the provisions of Industrial Employment Standing Orders Act. If certified standing orders are not framed model standing orders shall apply.

You may look into the SE Act applicable to your state, model standing orders, and IT policy of your state, which may be available on Dept. of Labor website of your state.

e.g. SE Act Delhi:

13.  EMPLOYMENT OF YOUNG PERSONS-HOURS OF WORK

19.  TIME AND CONDITIONS OF PAYMENT OF WAGES.

22.  LEAVE

33. Records.—

(2) The occupier of any shop or establishment, about the business of which persons are

employed, shall in the prescribed form and in the prescribed manner keep a record of the hours

worked

 

34. Employer to furnish letters of appointment to employees.

 

As per IT Policy of Pondicherry {attached}:

3.3.4 Fiscal and Administrative Incentives:

IT companies will be permitted to  self certifyfor purposes of compliance of the

following Acts:-o 

The Factories Act, 1948

o  The Payment of Wages Act, 1936

o  The Minimum Wages Act, 1948

o  The Contract Labour (Regulation and Abolition) Act, 1970

o  The Pondicherry Shops and Establishment Act,1964

o  The Payment of Gratuity Act, 1972

o  The Equal Remuneration Act, 1976

o  The Maternity Benefits Act, 1961

o  The Industrial Employment (Standing orders) Act, 1946

{Implying standing orders act is applicable, to IT Industry. However you may check for your state.}

Offer letter is issued after selection. Appointment letter is issued on joining. Service conditions are as per stated in appointment letter and standing orders. If company has not framed its standing orders model standing orders shall apply { attached}. If no appointment letter is issued you can claim that no terms and conditions have been firmed up, accepted and hence not applicable.

{e.g.

  1. Payment of wages.
  2. Termination of employment
  1. Certificate on termination of service.

If the employer has not paid by the pay day and has been doing it every month, it is violation of the standing orders.

You may also make note that if standing orders are applicable to you and notice period as per standing orders is 1 month and notice period in appointment letter is 3 months, the notice period to be applied shall be 1 month. Similarly you may look into notice pay as in case of standing orders.}

 

Employee should find his ways and means to keep record of hours clocked by him and even if by email a communication from authority to work overtime. Otherwise company/HR/Line management may claim that employee was sitting in office on his own.

You have posted that “then 1 week's sponsered leave and then they charged LOP on it.”

You may submit a gentle representation that the leave was sanctioned with pay and hence LOP should be waived off.

Employee should demand whatever is due to him from good offices of appointing authority, MD, CEO, Company Secretary, with a copy to Head-HR, in writing under acknowledgment and build favorable record and keep copies.

Such matters are best resolved amicably by applying rapport, goodwill, exceptional levels of negotiation, reasoning, persuasion, persistence skills, while in employment.

Litigation can be stressful for some employees. Litigation can be lengthy.

In case of a situation it shall be appropriate to approach a competent and experienced service lawyer/labor consultant with copies of all of your documents salary slips, appointment letter, standing orders, service rule book, HR policy, emails etc and give inputs in person and proceed under expert advice of your lawyer. Your lawyer shall evaluate the merits and may opine that you fall within the category of workman.

Company may yield to legal notice of your lawyer or you may have to agitate in the appropriate forum. Company may yield to your demands during conciliation proceedings in o/o ALC or the ALC shall issue reference to Labor Court.

Or you may have to agitate in civil court.

 


Attached File : 386073031 model%20standing%20orders.doc, 386073031 delhi shops & establishments act, 1954.pdf, 386073031 it policy 2008 pondicherry.pdf downloaded: 304 times

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