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prabha (vp)     10 February 2013

Salary not paid

Dear Sirs

I was appointed as VP of the company for a SBU.

The promoter of a Company where I am working has been banned by SEBI. Hence, he has floated a Co using his relatives. He holds 80% shares and 3 other directors balance 20%. He acquired 3 companies and the parent company is just a holding co. None of the companies performed due to lack of working capital. The company did not pay salaries for over 13 months and in few cases they paid paltry amounts whenever the staff protest. The company did not pay income tax, PF and other staturotry dues

I contacted the MD, who cooly says he has resigned as well as the other Directors.

I have resigned from the company. I have been demanding the outstanding duesand Form 16, PF statements, etc,. However, the promotor is silent.  Kindly guide me way forward.



 1 Replies

Kumar Doab (FIN)     17 February 2013

Probably SBU referred to as your employer by you is Strategic Business Unit.

You would know it was part of a larger group or business unit by itself. Accordingly you may proceed.

It might have registered under SE Act of the state where it was located, and you may look into it. The SE Act might be available at Dept. of Labor website of the state.

 

e.g. SE Act Delhi:

 

 

You have posted that you have been representing to good offices of MD, promoter and no relief is granted.

You may submit final communication/representation ( if you wish you can title it NOTICE also) addressed to good offices of your appointing authority, Chairman, Promoter/owner/Manager as per SE Act, cite reference of all representations made so far in person, by email, by letter etc( mention name/designation/dept/address/phone numbers etc), conclude that you have been clamoring to get your pending payments/docs and request them to intervene and provide relief by supplying you the pending payments and documents ( mention detail) so as to reach you within next say ….15 days.

Your employer should supply you, acknowledgment/acceptance of resignation, service certificate, relieving letter ( with good comments on conduct), NOC/NDC, correct FNF statement, correct Form 16 as per correct FNF statement, PF number, PF passbook/account slips for entire period of service, last salary slip, salary certificate……etc

The FNF statement would show DOJ, DOL and period/days for which salary is calculated

You may refer toSE Act of your state. e.g.;

The Delhi Shops and Establishments Act, 1954

2. Definitions.

(5)  “commercial establishment” means……

(7)  “employee” means a person wholly or principally employed, whether directly or

otherwise, and whether for wages (payable on permanent, periodical, contract, piece-rate or commission basis) or other consideration

(8)  “employer” means the owner of any establishment about the business of which

persons are employed, and where the business of such establishment is not directly

managed by the owner, means the manager, agent or representative of such owner in

the said business;

SE Act: e.g. SE Act Delhi:

19. TIME AND CONDITIONS OF PAYMENT OF WAGES.

21.  CLAIMS RELATING TO WAGES.

35. Inspection of Registers and calling for information.

37.  POWERS AND DUTIES OF INSPECTOR.

COMMENTS

(b) Duties of the Inspector :

(h)  that the wages and other dues are being paid to employees in time as required under the Act;

(i)  that in dispensing with the services of an employee the provision of the Act and Rules have been complied with and no  dues payable under the Act or Rules have been withheld;

41.  WILFULLY MAKING FALSE ENTRIES

THE PAYMENT OF WAGES ACT, 1936

2. Definitions.-

3*[(vi) "wages" means

 (d) any sum which by reason of the termination of employment of the person employed is payable under any law, contract or instrument which provides for the payment of such sum, whether with or without deductions, but does not provide for the time within which the payment is to be made;

Some employees acquire some handle on employer by virtue of proximity to sensitive information, position.. etc and such employees can apply such handle and succeed with employer. If you feel that you have such handle you can try cautiously.

Such unscrupulous employers should be reported to statutory authorities.

The company has evaded PF. Your lawyer may opine that it is cognizable offence and attracts prosecution under IPC406.

Your lawyer may opine that the employer has been coercing employees for 13 months and can be prosecuted under 406,420…..and FIR can be lodged, and may also opine that the limitation period for you is 3 years.

The Labor Inspector may want to give notice and this may work in your favor and your payments may be released and the matter may end.

The company may relent and yield to your representation to good offices, demand notice, Notice by Wages Inspector, Inspector under SE Act, and legal notice by your lawyer.

The option to approach civil court is there too.

Valuable advice of learned experts/members is sought.

Yu may go thru some of the highly informative threads at LCI e.g;

Discussion > Labour & Service Law > PF & ESI > Pf amount not submitted from employer

 

https://www.lawyersclubindia.com/forum/Pf-amount-not-submitted-from-employer-74970.asp

 

Valuable advice of learned experts/members is sought.


Attached File : 948310535 delhi shops & establishments act, 1954.pdf downloaded: 167 times

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