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Yogendra Mishra (Manager)     13 August 2012

Salary issue

Dear Sir,

I am facing problem in my new job, I was working as an executive in KNB and I got a new job as a area sales manager in forun Express Ltd. New Delhi, after interview I gave the resignation in KNB but during notice period I come to know forum Express salary rules, that I want to ask is this rule is legal, one of my friend join before me and he told me that they are saying that, they will not pay any salary or convince and mobile cost till the time we give him one franchise, our work is to make franchise of company and our job is fully field job for that they told as at the time of interview that they will pay convince and mobile expenses and our starting salary is RS.12000/-, but now I have come to know we got nothing if until we do not make any franchise and when we make one franchise they will only pay our salary and expenses and if we create more franchise then they will pay incentive.

I just want to know is it legal to not to pay any salary and expenses and I bear all the cost till the time of I get any franchises it is fully field job, because it is a currier company and only six month old in delhi and most of the person think not to invest in very new company, so there is less chance to get franchise in very first month, and when I got first franchise they pay me Rs.12000/- of my salary otherwise no salary(it is not mention in advertisement nor they tell me at the time of interview and how they count my work as “no work”).

One more thing in the advertise on Times of India they print salary of Area sales Manager 3lakh to 4 lakh with 0 to 1 years of experience now they are giving me only 12k salary per month is it legal.

What action I can take against them.

Suggest me ASAP

Thanks



 7 Replies

Kumar Doab (FIN)     13 August 2012

Do not join this company.

Yogendra Mishra (Manager)     13 August 2012

i have to join because i give resignation to my old job

Kumar Doab (FIN)     13 August 2012

Try to to withdraw the resignation from old company.

Employee should always consult elders in the family, competent and experienced well wishers before acting in haste.

If at all you join this company ask for advance for filed work.Tell them you have not been paid salary and need funds for filed work.

Take up the issue of salary as mentioned in advertisement and during interview.Do not accept the appointment letter if salary mentioned is less than advertised.

Look for another job also.

Yogendra Mishra (Manager)     15 August 2012

Dear sir,

Thanks for your reply, My old organization is not allowing me to withdraw my resignation and yesterday I got my job offer latter in my mail.

Sir I want to know can I take any legal action against them.

My point is.

1.      They give me offer so I give the resignation to my old job.

2.      They are now telling me that they will not pay anything if I will not give the target(2 franchise or 1 franchise+10 currier counters).

3.      They did not mention in their advertisement it is totally incentives based job there is no salary.

4.      If they are using word salary (in advertisement and offer latter) so they should pay me my basic salary.

5.      They cause financial lose to me because of them now I am jobless till the time how I will survive in Delhi.

6.      Their rule is showing they want that most of the employee in their organization work for them for free and also invest their own money in work, this is because if any person give them less then the target they will not pay anything and if employee do not want to work they will force him or her to give another 15 days of notice for which they will get nothing and left the organization after investing the money in convince and get nothing.

Sir I want to know can I take any legal action against them on the bases of advertisement and offer latter or after joining this organization

Sir here is the terms and condition in offer latter:

This is in reference to your application and the subsequent interview you had with our Chairman Mr. Rajesh Kumar Adhwani at our 314, MODI TOWER Office for the position of Area Sales Manager in our organization. It is my pleasure to extend the following offer of employment   for Area  Sales Manager in Forun Express Courier & Cargo ltd.  to you. You are expected to join duty on 20/08/2012. You are appointed to the position of Area Sales Manager and in this capacity, you will report directly to your KETAN SHARMA (SALES HEAD). Initially you will be assigning the job of Area Sales Manager in Forun Express Courier & Cargo ltd.

 

You will be subjected to the following terms and conditions during your entire tenure of the Forun Express Courier & Cargo Ltd. These terms and conditions are as follows.

(1). Designation: Area Sales Manager

(2). Time: 10.00 am to 6.00 pm (Monday to Saturday).

(3). Reporting Officer KETAN SHARMA (SALES HEAD).

(4) Salary and compensation system:  BASIC PLUS INCENTIVES.

(5) Your Salary.

(6) Target assigned to you:( 2 Franchises per month) or (1Franchise & 10 counters)

(7) Additional Incentive:  If the employee makes franchise of more than 20000/- Rs as security deposit then he will get 10% on exempted amount except 20000/-

 8.     Moblile allowance : 500.00 (Five hundred only).                  

 9.     Conveyance allowance : Rs 1500.00(Fifteen hundred only) per month.

.10.   Required documents: Photocopy of the all the relevant educational and work experience certificates, 2 recent passport size photo, 10 reference no.

11.    photo copy of the two valid ID Proof and residential proof.

12.    Police verification report within 1 month of joining +-

13          If you do not make(2 franchises  per month) or (1 franchise and 10 counters) then you will not be paid any salary compensation for that month ,or   any mobile and conveyance allowance.

14.    Incentive: If you make any additional franchise in a month, then you will get additional incentive calculated as Rs 3000.00( three   thousand) only  based on the no of franchises made.

15.      When you will left the job then you will have to hand over all the relevant document provided  you by the company and if any document  or material is lost then you will be charged penalty for that.

16.      Your notice period will be of fifteen days.

 

 

Your working hours start from 10.00 a.m. with half an hour break a day and you are scheduled to work through Monday to Saturday which is a total of 48 hours a week. In addition, you will be provided Id Card, Pamphlet, Corporate  Sim Card, Visiting  Card, Diary which will be with you during your entire tenure and should be use for only corporate purpose and not for any personal use.

You will not misuse of all the provided documents and sim card, company can take disciplinary action against you in condition if you use of these documents and sim card. 

You will be on probation period for 6 months.After successful completion of the probation and review thereof, you will be entitled to other allowances and benefits whatsoever as per policies of the organization. Regular performance reviews will be done to assess your suitability. You shall receive your payments on or before the 10th of every month.

Offer stands canceled in case of any deviations in information or if you fail to report to me on or before pre-decided date. I will have to assume that you have not accepted this job offer if i do not hear from you before 20/08/2012

You have to give fifteen days of notice period before leaving the job and has to submit the authorized documents issued to you from the company.

You will need to submit all your qualification documents (xerox) relieving documents and salary slip (if any) of last three months with a copy of each, on the date of joining. In case you leave the job without informing the company within 15 days or do not work according to company rules and regulations,  the company can take any disciplinary action against  you.

Any dispute arising from this agreement between the two parties will be subjected to the arbitrary under the legal jurisdiction of Delhi High Court.

I look forward to an enduring relationship with yourself.

Yours sincerely,

J.P GAUTAM                                            Kumar Saurabh

Managing Director                                    HR Manager

 

Kumar Doab (FIN)     16 August 2012

Employee should always consult elders in the family before acting in haste.

You have posted that:

--“My old organization is not allowing me to withdraw my resignation”

If you want to withdraw you have to withdraw in writing. Let the company reply whatever it wants to. If your resignation has not been accepted, you can withdraw. However first of all you may decide what exactly you want to do i.e. rejoin old company {if they allow} or contest conditions of new company.

--“yesterday I got my job offer latter in my mail.”

Probably you wish to mention that you have received it from new company.

What is your date of joining? Have you signed any induction report? Has the company provided any kind of HR forms to be signed by you e.g. PF, Gratuity, ESIC forms, mediclaim, group insurance forms with forms for nomination? Offer letter is issued after selection by the company. It is felt that you have not accepted the offer.

  1. It is felt that you have not accepted the offer letter.
  2. and 3. No one can be employed without any wages. It is illegal.
  3. and 5 Yes.

6. Employee can ask for imprested cash or advance to meet field expenses. Notice period or notice pay is to tendered by employer or employee whosoever is initiating separation as per terms of contract of employment. Employee should always tender notice of resignation than abrupt resignation with immediate effect and mention effective date of resignation/last day in office. If employer accepts before effective date of resignation/last day in office, it can be termed illegal and employee can agitate and decline to accept notice pay if offered by employer. Employee can withdraw notice resignation effective date of resignation/last day in office.

 

Company may attach terms and conditions for performance incentives. Wages or salary is to be paid irrespective of sales performance.

It is felt that Clause 13 is illegal and can be contested in court of law.

Do you have copies of advertisement etc.

If you have already joined this company and have started working you may mention in writing that you have already started working from dated…….and were inducted by………and have submitted your work reports dated…….. Mention all dates, and accept the offer letter but without clause 13 and gently decline the clause 13, and remind that you have been appointed as per advertisement dated……your job application dated………and salary advertised rs…./pm and confirmed during interview dated……same may be  written in the offer letter and appointment letter.

In a given situation employee can invoke the Industrial Employment standing orders Act, Payment of Wages Act, SE Act, and ID Act as per explanation of employee under these Enactments or approach civil court.

Companies burn extra energy to convince employee that he/she is not a workman as many of the enactments favor employee and limit the choice to employer. However designation alone does not decide employee is a workman or not.

You may go thru SE Act applicable to Delhi. If this company is covered under Se act you can approach the Inspector/Chief inspector/ALC.

Are standing orders applicable to this company? If the company does not have any certified standing orders model standing orders should apply.

Delhi Govt. Labor website:

Industrial Employment (Standing Orders) Act, 1946

17.

Liability of 1[employer].-

 

The 1[employer]of the establishment shall personally be held responsible for theproper and faithful observance of the standing orders.

 

22.

Exhibition and supply of standing orders.-

 

Acopy of these orders in English and in the regional languages of thelocal area in which the mine is situated shall be posted at themanager's office and in such other places of the mine as the employermay decide and it shall be kept in a legible condition. A copy of thestanding orders shall be supplied to a workman on application, onpayment of a reasonable price. A trade union in the establishment will,however, be entitled to the free supply of a copy of the standingorders, provided the union is one which is recognised by the employer.

 

You may approach a competent and experienced labor consultant/service lawyer.


Attached File : 419963091 delhi shops & establishments act, 1954.pdf downloaded: 189 times

Kumar Doab (FIN)     16 August 2012

It is mentioned in the offer letter ”Any dispute arising from this agreement between the two parties will be subjected to the arbitrary under the legal jurisdiction of Delhi High Court.”

This implies that you shall have to approach an arbitrator. You may mention that no clause of being subject of arbitration was ever communicated to you and hence this condition is not accepted and dispute if any shall be within jurisdiction of courts of law without arbiterator.

You may approach a competent and experienced labor consultant/service lawyer and give inputs in person, show all record and proceed under expert advice of your labor consultant/service lawyer.

nyay manch ngo (Chairman)     18 November 2012

you have too good knowledge and conveinece power also then why don't you make franchise for the company, when company is expecting franchise from you and working on franchise base just the whole work in logistic industry is based on Franchise then what will company expect and demand and offer you. so please go and work hard and make franchise for the company then definately you will get the whole salary and incentives as all are mentioned in your offer letter and company told you the conditions.

Nyay Manch NGO

Good Luck


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